Cryptocurrency wallet firm Tangem has teamed up with Visa to merge self-custody and mainstream payments. On July 4, Tangem announced their partnership with Visa to launch a new hardware wallet technology integrated with Visa payment cards.
This business-to-consumer (B2C) product, set to be released under the Tangem brand, is expected to launch by the end of the year, according to Tangem’s chief technology officer (CTO), Andrey Lazutkin, in an interview with Cointelegraph.
Tangem’s hardware wallet payment technology, Tangem Pay, allows users to spend cryptocurrency directly from their self-custodial wallet at merchants’ payment terminals or through online payment tools. This technology received Visa certification in February 2022.
“We received certification from Visa and a patent for the technology. Now, we have developed a product that we are ready to present to the world,” said Lazutkin.
Tangem co-founder Andrey Kurennykh added, “Our users will benefit from a two-in-one solution — the convenience of a regular bank card combined with the features of a self-custodial crypto wallet, all in one card.”
Tangem’s wallet solution is self-custodial and can operate with or without a seed phrase. However, Tangem Pay is based on a smart contract and is offered as a single card without a seed phrase, explained Lazutkin.
Initially, Tangem Pay will be available to users of any self-custodial wallet, not just Tangem’s, as a “standard Web3 service,” according to Lazutkin. The firm is also developing a software-as-a-service platform that will enable any wallet to issue cards under their own brand, allowing banks to integrate crypto solutions into their product lines and blockchains to become “platforms for payments.”
“Tangem Pay can connect to any wallet like MetaMask, Ledger, Trust Wallet,” Lazutkin noted. If the Tangem Pay card is lost or damaged, users can still access their accounts through the main wallet interface.
There are no limitations on which cryptocurrencies will be supported on the new Tangem wallet, but the firm plans to start with Tether (USDT) on the Polygon network. Currently, Tangem supports at least 59 networks, including Bitcoin and Ethereum, according to its website.
Visa’s head of crypto, Cuy Sheffield, emphasized the importance of the collaboration with Tangem for the future of payments.
Launched in 2021, Tangem Wallet is a card-shaped, self-custodial cold wallet that allows users to store cryptocurrencies like Bitcoin, using either seed or seedless wallet activation. “80% of our users activated wallets without seed phrases using our smart backup technology,” a Tangem spokesperson told Cointelegraph.
A Tangem Wallet set can include up to three Tangem cards. “You get three equal cards to one wallet, just like having three identical keys to your room door,” the representative added.
Since its launch, Tangem has produced over one million cards. The wallet is available in at least 160 countries and plans to expand to new jurisdictions in the future.
A self-custodial wallet is a type of wallet designed to store cryptocurrencies like Bitcoin without any intermediary, giving users full control over their cryptocurrency assets.
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