This morning (12th), Pudgy Penguins announced on X: "Pengu has officially entered the world of consumer finance." In collaboration with Visa and crypto payment startup KAST, they launched the Pengu Card, which allows users to make purchases directly with stablecoins or cryptocurrencies without having to transfer their assets to a centralized exchange to exchange for fiat currency.
Pengu Card Mechanism
Pengu Card's technology is based on KAST, a fintech company specializing in stablecoin payments that provides encrypted debit card services over the Visa network. Pengu Card adds three layers of branding to this foundation:
First, the reward mechanism : up to 12% cashback on spending and up to 7% return on assets, with the specific percentage depending on the card level.
This figure is much higher than the 1-3% cashback offered by traditional credit cards. However, it should be noted that high cashback rates are not uncommon in the crypto payment card space, and are usually paid in platform tokens or under specific conditions, with the actual value depending on the token's market performance.
The second and third tiers of the card system include : Standard Card, Black Card, and Gold Card, with different levels corresponding to different reward ratios and functional permissions.
Third, the community referral mechanism : users who join the waiting list will receive a referral code, and the more people they invite, the higher their ranking. The top 10 referrers will receive a black card. This is a typical Web3 growth strategy: using the network effect of community to replace traditional advertising and marketing.
From Toy Shelves to Financial Products: The Expansion Logic of Pudgy Penguins
This NFT project, launched in 2021, is far more than just a set of on-chain JPEG images. Over the past two years, Pudgy Penguins has forged a path almost no one in the NFT industry has replicated: physical consumer products. Its penguin plush toys have sold over 1 million units, generating over $13 million in retail revenue, and are available in Walmart, Target, and 2,000 Walgreens stores across the US. From 2023 to 2025, the compound annual growth rate of plush toy revenue is projected to reach 123%.
In 2026, Pudgy Penguins' expansion became even more aggressive: a cross-IP collaboration with DreamWorks' Kung Fu Panda, entry into the Asian retail market through Suplay Inc., and a target of an IPO in 2027 with annual revenue exceeding $50 million.
Pengu Card is the latest extension of this expansion strategy. The logic is clear: the toys brought Pudgy Penguins into physical retail; the debit card brings it into financial services. An IP brand is gradually building its own consumer ecosystem.
The crowded track of encrypted debit cards
However, we know that Pengu Card is not the only crypto debit card on the market. Coinbase's Visa card, Crypto.com's CRO card, and the Binance and Mastercard partnership card also cover multiple markets.
In this crowded market, Pengu Card's differentiation lies not in technology, but in its brand and community. Pudgy Penguins boasts one of the most active communities in the crypto industry. For Pudgy Penguins, the debit card is not a standalone financial product, but rather another anchor point for community engagement. However, it's too early to say which model is more sustainable.
After all, the high reward rates of crypto debit cards are often unsustainable. The generous subsidies in the early stages are for customer acquisition, but once the subsidies are reduced, user retention will be tested. Crypto.com's CRO card is a case in point; after drastically reducing the reward rate in 2022, it triggered a strong backlash from the community.
Pudgy Penguins has a brand, a community, and a solid revenue foundation in physical retail. However, the transition from an NFT brand to a financial services provider involves more than just a Visa card; it also involves long-term challenges such as compliance costs, risk management, and building user trust.
How far this penguin can go depends on how long its brand can last.
