Tangem, a prominent provider of self-custodial cryptocurrency wallets, has unveiled a groundbreaking hardware wallet integrated with Visa payment capabilities. This innovation allows users to spend digital assets directly from their secure, self-custodial wallets at any merchant that accepts Visa, both online and in physical stores. The collaboration aims to merge the security of self-custody with the convenience of mainstream payment systems.
Key Developments in the Partnership
- Collaboration with Visa: Tangem has partnered with Visa to develop a new hardware wallet technology that integrates seamlessly with Visa payment cards, announced on July 4.
- Product Launch Timeline: The new business-to-consumer (B2C) product, branded under Tangem, is scheduled for release by the end of the year, according to Tangem's Chief Technology Officer, Andrey Lazutkin.
- Certification and Patent: Tangem received certification from Visa for its payment technology in February 2022 and has since secured a patent for the innovation.
Tangem Pay: Bridging Traditional Banking and Digital Assets
The centerpiece of this new wallet is Tangem Pay, a payment technology that enables direct spending of cryptocurrencies from a self-custodial wallet. Users can make transactions through standard payment terminals or online tools, effectively combining the utility of a traditional bank card with the power of a non-custodial crypto wallet.
Andrey Kurennykh, Co-founder of Tangem, emphasized the significance of this development:
"Our users will get a two-in-one solution — the convenience of a regular bank card and the capabilities of a self-custodial crypto wallet, all in one card. This is a significant step towards bridging the gap between traditional banking and digital assets."
How Tangem Pay Enhances Wallet Security and Usability
Unlike traditional wallets that often rely on seed phrases for backup, Tangem Pay utilizes a smart contract-based system. This approach allows the card to function without a seed phrase, enhancing security by reducing vulnerability to phishing attacks or physical theft. However, the core Tangem wallet still supports both seed and seedless activation methods, offering flexibility based on user preference.
Lazutkin highlighted that Tangem Pay is designed as a standard Web3 service, initially available to users of any wallet—not just Tangem's. The long-term vision includes developing a software-as-a-service (SaaS) platform that enables other wallet providers to issue similar cards under their own brands. This initiative could empower traditional banks to incorporate crypto solutions and help blockchains evolve into full-fledged payment platforms.
Supported Cryptocurrencies and Networks
While there are no explicit limitations on which cryptocurrencies will be supported, Tangem plans to begin with Tether (USDT) on the Polygon network. The existing Tangem wallet already supports at least 59 blockchain networks, including Bitcoin and Ethereum, providing a broad foundation for future expansion.
👉 Explore secure payment solutions
Industry Implications and Expert Opinions
Cuy Sheffield, Head of Crypto at Visa, underscored the importance of this partnership for the future of payments:
"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."
This collaboration reflects a growing trend of integrating digital assets into everyday financial transactions, emphasizing both convenience and security.
Tangem's Track Record and Global Reach
Since its launch in 2021, Tangem has produced over one million card-shaped cold wallets. These devices allow users to store cryptocurrencies like Bitcoin securely, with options for both seed and seedless activation. Notably, approximately 80% of Tangem users have opted for seedless activation using the company's smart backup technology.
Each Tangem Wallet set includes up to three identical cards, providing redundant access to the same wallet—akin to having multiple keys to the same door. This design enhances usability without compromising security. The wallet is currently available in 160 countries, with plans for further expansion.
Understanding Self-Custodial Wallets
A self-custodial wallet is a type of cryptocurrency storage that eliminates intermediaries, giving users full control over their digital assets. Unlike hosted wallets managed by exchanges, self-custodial solutions ensure that only the user holds the private keys, reducing counterparty risk and enhancing security.
Frequently Asked Questions
What is Tangem Pay?
Tangem Pay is a payment technology integrated into Tangem's hardware wallet, allowing users to spend cryptocurrencies directly at Visa-accepting merchants. It combines the security of self-custody with the convenience of traditional payment cards.
How does Tangem ensure security without a seed phrase?
Tangem uses smart contract technology and smart backup systems to enable secure, seedless wallet activation. This reduces risks associated with seed phrase loss or theft while maintaining full user control over assets.
Can Tangem Pay be used with other wallets?
Yes, Tangem plans to make Tangem Pay accessible as a standard Web3 service, compatible with popular wallets like MetaMask, Ledger, and Trust Wallet. Users can manage their accounts through their primary wallet interface even if the Tangem Pay card is lost.
Which cryptocurrencies are supported?
While support is expected to expand, initial transactions will focus on Tether (USDT) on the Polygon network. The broader Tangem wallet already supports major networks like Bitcoin and Ethereum.
What happens if my Tangem Pay card is lost?
Since the card is linked to your self-custodial wallet via smart contracts, you can still access your funds through your main wallet interface. The lost card can be deactivated, similar to blocking a traditional bank card.
Is Tangem available globally?
Tangem wallets are currently available in 160 countries, with ongoing plans to expand into new jurisdictions. The Tangem Pay feature will follow a similar global rollout strategy.
This development marks a significant milestone in the adoption of cryptocurrencies for everyday transactions, offering a seamless bridge between digital assets and conventional finance.