Tangem, known for its self-custodial crypto wallets, has developed an innovative new wallet that integrates direct payment capabilities through Visa, enhancing the security and convenience of cryptocurrency transactions
Tangem, a cryptocurrency wallet company, is partnering with Visa to integrate self-custody and mainstream payments.
On July 4, Tangem disclosed that it had collaborated with Visa to introduce a novel hardware wallet technology seamlessly integrated with Visa payment cards.
According to Andrey Lazutkin, Tangem’s chief technology officer (CTO), the new business-to-consumer (B2C) product is anticipated to be distributed by the end of the year under the Tangem brand.
Visa has certified Tangem’s hardware wallet payment technology
Tangem Pay, a payment technology that enables users to spend crypto directly from the self-custodial wallet through merchants’ payment terminals or online payment tools, will be introduced in the forthcoming new crypto wallet from Tangem.
In February 2022, Visa granted Tangem certification for this payment technology.
“We have developed a product that we will soon be able to present to the world, and we have received a patent for the technology and certification from Visa,” Lazutkin stated.
Andrey Kurennykh, co-founder of Tangem, stated, “Our users will receive a dual solution: the convenience of a traditional bank card and the capabilities of a self-custodial crypto wallet, all in a single card.”
“This is a significant step towards bridging the gap between traditional banking and digital assets, making it easier for everyday users to navigate and leverage the benefits of both worlds.”
Lazutkin informed Cointelegraph that Tangem Pay is based on a smart contract and includes a single card without a seed phrase. In contrast, Tangem’s wallet solution is self-custodial and can function with or without a seed phrase.
Tangem Pay will be accessible to any self-custodial wallet
Initially, Tangem intends to introduce a B2C solution accessible to users of any wallet, not just Tangem, as a “standard Web3 service,” as Lazutkin observed.
The company is creating a software-as-a-service solution enabling any wallet to issue cards under its brand.
The end goal is to establish a platform. The executive stated that the technology will allow banks to incorporate crypto solutions into their product lines and enable blockchains to function as “payment platforms.”
If the Tangem Pay card is lost or damaged, users can still access their accounts through the primary wallet interface. Lazutkin stated that Tangem Pay can be connected to any wallet, such as MetaMask, Ledger, or Trust Wallet.
Additionally, he specified that the new Tangem wallet would not have any restrictions on the cryptocurrencies it would support.
However, the company intends to commence operations with Tether USDT tickers priced at $1.00 on the Polygon network.
Tangem’s website indicates that it supports at least 59 networks, including Bitcoin and Ethereum, at this time.
Cuy Sheffield, Visa’s director of crypto, underscored the importance of the company’s partnership with Tangem for the future of payments. He declared:
“With our partnership with Tangem aimed at driving the creation of next-gen payment solutions, we are excited to work with Tangem to help enable effortless payments with digital currencies designed with security in mind.”
Tangem Wallet, a self-custodial cold wallet in the card format, was introduced in 2021. It lets users store cryptocurrencies such as Bitcoin using seed and seedless wallet activation.
A spokesperson for Tangem informed Cointelegraph that “80% of our users activated wallets without seed phrases using our smart backup technology.”
Three Tangem cards may be included in a Tangem Wallet set. “You receive three identical cards in a single wallet, akin to having three identical keys to your room door,” the representative further explained.
Tangem has manufactured over one million cards since its inception. The wallet is accessible in at least 160 countries and will be extended to additional jurisdictions.
A self-custodial wallet is a wallet that is intended to store cryptocurrencies such as Bitcoin without the involvement of an intermediary. This implies that a user has complete authority over the cryptocurrency stored and directly holds crypto assets.