Phemex began rolling out its Phemex Card to eligible users on September 14, integrating with payment networks accepted by more than 100 million merchants globally. The card differs from most existing crypto cards by settling transactions directly from a user's spot account rather than requiring pre-loaded funds into a separate wallet.
Supported stablecoins convert to fiat at the moment of payment in real time, keeping capital inside the trading environment until spent. The company is expanding availability progressively as it completes regulatory and onboarding requirements in each market.
Design Philosophy: Trading Infrastructure Over Rewards
Phemex CEO Federico Variola said the card was built around how the exchange's users actually operate, observing that most are traders or capital allocators focused on moving capital between active positions, stable assets, and real-world spending. "When you observe that workflow, the traditional perk card model starts to look slightly misaligned," Variola told BeInCrypto. "Rewards programs tend to encourage consumption, while traders are usually thinking about capital discipline."
The card closes what Phemex describes as the last mile of the trading ecosystem, addressing a persistent gap despite a decade of crypto infrastructure development. Previously, users had to convert to fiat, withdraw through a bank, wait for settlement, then spend.
Cashback Structure Designed for Reinvestment
Rather than crediting rewards as fiat discounts or platform points, Phemex returns cashback in USDT directly to users' spot accounts. Standard users receive 0.25% cashback on eligible transactions, while VIP users receive up to 1%. The program has no maximum cashback cap, allowing high-volume spending to generate proportional returns.
Variola described the structure as a recurring inflow rather than a reward. "If a Phemex user is already spending money in the real world, that activity can quietly add liquidity back into their trading environment over time," he explained.
Market Growth and Competitive Landscape
Crypto card transaction volumes grew from roughly $100 million per month in early 2023 to over $1.5 billion by late 2025, according to Artemis Analytics. Data tracked by Dune Analytics shows net spend across six Visa-partnered crypto cards rose 525% in 2025, from $14.6 million in January to $91.3 million in December.
Much of that activity has come from DeFi-native, non-custodial models allowing users to spend against yield-bearing collateral without selling assets. Variola said both the exchange-integrated model and DeFi model are likely to coexist, addressing different priorities. "DeFi cards optimize for sovereignty, while exchange-integrated cards optimize for execution efficiency and liquidity access," he said.
Europe as Priority Market
Phemex is prioritizing Europe for card expansion, citing the region's developing regulatory environment and the introduction of the Markets in Crypto-Assets (MiCA) regulation. Variola noted that greater regulatory clarity creates more predictable conditions for users. "Users want to know that the financial products and infrastructure they rely on are built for the long term," he said.
