Paz Group Enables Yellow App Users to Convert Loyalty Points into Bitcoin
Paz Group and crypto service company Bits of Gold have partnered to allow users of the Yellow app to convert their accumulated loyalty points into bitcoin purchases. Starting Tuesday, customers can exchange "Yellow money" earned through fuel purchases, electric vehicle charging, convenience store shopping, and collaborations with chains like Wolt and Super-Pharm for a bitcoin purchase coupon. The minimum redemption amount is set at 20 shekels. This service operates via the Bits of Gold Connect platform, which integrates fintech and crypto trading services into commercial apps. When users redeem points for bitcoin, they receive a coupon code equivalent to the monetary value, which directs them to Bits of Gold’s platform for wallet creation and trading after completing a mandatory digital identification process (KYC) due to anti-money laundering regulations.
Bits of Gold CEO Yuval Roash highlighted the company’s 14 years in the crypto field and the significance of enabling 1.8 million Yellow app users to buy bitcoin alongside other partners like Wolt and Super-Pharm. He emphasized the role of emerging regulatory clarity in facilitating such collaborations. Regarding taxation, the Israeli Tax Authority treats virtual currency sales or conversions as taxable events. To ease customer burden, Bits of Gold will operate under an existing tax arrangement allowing it to withhold tax at source when bitcoin is sold back to shekels and provide customers with relevant tax forms annually.
The conversion of points to bitcoin is done at full coupon value, with a variable fee of up to 2% plus VAT charged upon selling bitcoin back to shekels. Bits of Gold, employing about 55 people and serving 300,000 registered customers, views this deal with Paz as part of expanding its B2B2C activities. The company previously launched similar partnerships, including the MAX Back Crypto credit card offering bitcoin cashback and crypto payment options with car importer Colmobil. Bits of Gold is the first of nine licensed companies by Israel’s Capital Market Authority to provide digital asset financial services. This collaboration reflects recent regulatory developments in Israel, including new guidelines on crypto custody, capital requirements, trading listing drafts, and stablecoin legislation proposals.
