One of the VLP perks offered by Voyager is the debit card cashback rewards. It pays 0.01%. 0.02% and 0.03% respectively. Most people seem to think these rates are insignificant, but I want to argue that they are in fact better than anything else on the market. Here's why....

Traditional Bank-

Debit cards don't generally offer high cashback rewards. Some of the best cards offer around 1% cashback. This is between 70-90% better then the cashback of the Voyager debit card. Or is it?

With a Traditional bank, you are getting between 0.04-0.31% (0.0004-0.0031) APR on your checking account, depending on if it is an online bank or brick and mortar bank. If you maintained $10,000 in your account, that is $4- $31 per year in interest.

If you managed to spend $5,000 every month, that would amount to $50 a month in cashback rewards if your debit card offers 1% cash back. That's $604-$631 in interest AND rewards, per year, from low end to high end (compounded monthly). This is IF you maintain $5,000 spending AND you don't allow your account value to ever go down.

Now lets take the same scenario for your Voyager "bank".

Voyager "bank"-

If you use the Voyager debit card, you will be spending your funds that are held in USDC. When you spend or receive fiat, that will convert either to or from USD. Currently, USDC has an APR of 9% (0.09) and the Voyager debit card yields between 1/10 of 1 percent (0.001) and 3/10 of 1 percent (0.003).

Let's take the same spend/save scenario as the traditional banks and apply it to the Voyager model...

With Voyager as your bank, you are getting 9% (0.09) APR on your "checking account". That's $900 per year, or $75 a month in interest without compounding on an account with $10,000. With the debit card, if you managed to spend $5,000 every month, that would amount to $5-$15 a month in cashback rewards (depending on your VLP tier). That's $1,000-$1,125 in interest per year from low end to high end (compounded monthly). This is IF you maintain $5,000 spending AND you don't allow your account value to ever go below $10,000 plus interest.

The Difference-

To recap... with a traditional account, you can earn between $604-$631 in cashback AND interest each year, if you spend $5000 a month and maintain a $10,000 account plus rewards and interest.

With a Voyager "account", you can earn between $998-$1,088 in cashback AND interest each year, if you spend $5000 a month and maintain a $10,000 account plus rewards and interest.

This makes the Voyager account and debit card use better by at least $367 and as much as $484 per year.

*cashback not incorporated into compounding interest.

Fine Print-

But wait, there's more! The Voyager card doesn't pay out cash rewards in USDC or USD does it? Nope! It pays you rewards in VGX. Since a normal cash back reward is in USD, it doesn't offer a chance of capital gains or a better interest rate then your bank account, right? Right!

So, take whatever VGX you get in cashback rewards and give it a 7% APR boost. Since, the future price is unknown for VGX, we give that the big X factor. Who knows, maybe that $5-$15 for 1 month can moon to $100-$300 in a year. We don't know, but that's the fun part!

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Summary-

The Debit card opens us to a whole new way of banking. We reap the benefits of a traditional bank and the bonus of crypto interest rates and capital gains from our cashback rewards. This is Huge. Don't be fooled by the small cashback rewards #'s. This post proves there is more to it that what meets the eyes!