Tangem and Visa Partner to Revolutionize Crypto Payments with Hardware Wallet Solution

Summary

Tangem and Visa’s partnership marks a significant milestone in the evolution of digital payments. By introducing a self-hosted payment solution and a crypto Visa payment card, they aim to enhance the security, convenience, and usability of cryptocurrencies. This collaboration is poised to bridge the gap between traditional banking and digital assets, making it easier for users to navigate and benefit from both worlds. As Tangem continues to innovate and expand its offerings, the future of crypto payments looks promising.

According to Odaily, Tangem, a hardware wallet solution, has announced a groundbreaking partnership with payment giant Visa. This collaboration aims to support an innovative self-hosted payment solution for hardware wallets, allowing Tangem users to seamlessly pay with their cryptocurrency or stablecoin balance at merchants accepting Visa. This article delves into the details of this partnership, the technology behind it, and its implications for the future of digital payments.

The Partnership Overview

Tangem and Visa Join Forces

Tangem AG, a leading provider of secure hardware wallet solutions, has partnered with Visa, a global leader in digital payments. The collaboration aims to introduce a Visa payment card integrated with a hardware wallet, empowering users to make seamless payments using their crypto or stablecoin balance at Visa-accepting merchant locations. This technology will be accessible via a Tangem Visa card across Europe and will also be available to other issuers interested in leveraging it for their customers.

A Significant Step for Cryptocurrencies

The partnership between Tangem and Visa represents a significant step in integrating cryptocurrencies into mainstream payment systems. By providing a self-hosted payment solution, the collaboration aims to enhance the security and convenience of transactions for users. The introduction of a crypto Visa payment card further extends the usability of cryptocurrencies, allowing users to spend their digital assets at a wide range of merchants.

Technology and Security

Self-Custodial Payment Solution

Unlike traditional custodial solutions that rely on third-party entities to handle user funds, Tangem’s card embeds a private key within the chip and requires the physical card’s use in every transaction. This ensures that users maintain exclusive control over their assets at all times. This self-custodial payment solution is a critical advancement towards a decentralized future.

Enhanced Security Measures

Cuy Sheffield, Vice President and Head of Crypto at Visa, emphasized the importance of security in evolving the crypto ecosystem. He expressed excitement about working with Tangem to enable effortless payments with digital currencies designed with security in mind. This partnership aims to set new standards for secure digital payments.

Tangem’s Background and Achievements

Company History

Tangem Wallet is a card-shaped self-custodial cold wallet that gives users full control of their private keys. The Swiss-based company launched in 2017 with a mission to bring mass adoption of digital assets using a unique combination of a smartcard-based hardware wallet and mobile applications.

Product Evolution

In 2021, Tangem introduced its bank card-shaped hardware wallet, offering a seedless self-custodial multi-currency wallet. This wallet allows users to store, buy, earn, transfer, and swap over 6,000 cryptocurrencies and digital assets. Since its launch, Tangem has produced over 1,000,000 cards, with none being hacked, demonstrating the robustness of their security measures.

Future Developments

Tangem Pay

Tangem’s upcoming product, Tangem Pay, is a payment technology that allows users to spend crypto directly from the self-custodial wallet through merchants’ payment terminals or online payment tools. This technology, certified by Visa, aims to bridge the gap between traditional banking and digital assets, making it easier for everyday users to leverage the benefits of both worlds.

Availability and Expansion

Tangem plans to launch this new hardware wallet technology integrated with Visa payment cards by the end of the year. The technology will initially be available in Europe and will later expand to other regions. Additionally, Tangem aims to develop a software-as-a-service solution that will enable any wallet to issue cards under their own brand, further promoting the adoption of crypto payment solutions.

Market Implications

Bridging Traditional Banking and Digital Assets

The Tangem and Visa partnership is part of a broader trend where financial institutions and payment providers recognize the potential of cryptocurrencies. By integrating crypto payment options into their systems, these companies cater to a growing market of crypto users and pave the way for wider acceptance and use of digital currencies.

Future of Payments

Visa’s collaboration with Tangem is crucial for the future of payments. Tokenizing various assets on a distributed digital ledger and recording them in a single record of account could improve settlement times and costs. This holds promise for the payments processing industry, where Visa is a major player.

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