Fold Brings BTC Cashback and Lightning Payments in $2.5 Million Raise

September 26, 2019 / by Crypto.IQ

Crypto payment startup Fold has reportedly indicated that they have raised $2.5 million in a funding round from investors. Craft Ventures, Slow Ventures, CoinShares, Fulgur Ventures, and Goldcrest Capital, among others, led the funding round.

 As part of the capital raise the firm will launch an updated version of the Fold App that supports debit and credit cards. The Lightning-friendly App enables users to use Bitcoin in purchases of goods such as pizza and clothes and earn rewards. After the first funding round as an autonomous startup, the firm added fiat capability in the App.

Fold offers cashback rewards

Fold CEO and product lead Will Reaves said that the capital raised would go into enhancing partnerships in the crypto and retail space. He said that the new App allows users to get cashback rewards, and it keeps data secure when shopping at retailers. This is excellent news for Bitcoin fans that prefer privacy and are ready to get free money. 

Reeves added that the firm was thrilled because Fold is the first payment and rewards App to utilize the Lightning Network. The App makes using Bitcoin seamless and instant. He indicated that they would roll out subscription options for consumers and merchants soon. This will offer high-quality services and incredible cashback rewards.  

When users spend fiat currency at retailers, they will get BTC rewards. Users can spend or withdraw the rewards at an on-chain address. In the future, Fold will release an update which allows users to withdraw rewards to Lightning directly. The app supports debit cards for regular spending. Customers can send BTC to the app from their wallets. There is a desktop app with all the features that will launch in October. Mobile users can get early access by downloading it from the website.

Fold support two Lightning wallets

Meltem Demirors, the cofounder of CoinShares, said that the app is unique relative to other retail Bitcoin apps because of the ability to use non-custodial wallets. She said she was delighted to be working with Fold as well as corporate partners and other providers.

Fold focuses on Lightning payments, unlike retail-focused cryptocurrency apps such as Flexa and Lolli. Already Fold is integrated with two Lightning wallets, Breez and BlueWallet, which appealed to Oleg Mikhalsky. Mikhalsky said that the Lightning network has the potential of becoming a significant payment rail for several applications. This is because of features such as the ability to stream payments, instant settlement, support of other assets in the future, and cost-effective microtransactions.