A notable advancement in the cryptocurrency space has emerged with the launch of Tangem Pay, a new retail payments product from Switzerland-based hardware wallet manufacturer Tangem. This innovative feature allows users of Tangem wallets to spend USDC, a stablecoin, directly at any location that accepts Visa transactions. These purchases can be facilitated through virtual Visa cards that users can seamlessly integrate into popular digital wallets such as Apple Pay and Google Pay. The announcement, made through a press release, highlights the company’s collaboration with Polygon, which will provide the blockchain framework for on-chain settlement of all transactions processed through Tangem Pay.
Following an initial early-access phase that began in November, Tangem Pay is now available in the U.S. (with some state exceptions), Latin America, and selected countries in the Asia-Pacific region. The company, which specializes in self-custodial hardware wallets and was founded in 2017, stands apart from competitors like Trezor and Ledger by exclusively offering NFC-enabled devices for cryptocurrency storage. These devices come in two primary formats: a credit card-sized card and a wearable ring.
To utilize Tangem Pay, users must first convert their funds into USDC before initiating transactions. Tangem Pay’s CEO, Marcos Nunes, indicated that the platform aims to eventually expand its range of supported assets and settlement options, enhancing user flexibility. While the current offering is limited to virtual Visa cards, the company has plans to introduce physical cards in the near future, citing the necessity to meet the needs of users who still rely on traditional payment cards.
Nunes explained the choice of Polygon as the underlying technology provider due to its capabilities in transaction speed, predictable fees, and the capacity to manage the high transaction volumes demanded by global payment systems. “Payments are a scale game, not a theory exercise,” Nunes remarked, emphasizing the need for low fees, fast transaction finality, and dependable performance. His confidence in Polygon was bolstered by its ability to offer these essential features for daily spending.
In an effort to further enhance user experience, Polygon has announced that it will cover gas fees for transactions during the initial rollout period, while Tangem itself will not impose any additional fees on users. Nunes highlighted that the intention is to make the payment process feel as seamless and straightforward as using a conventional bank account.
Polygon Labs’ head of global business development, Aishwary Gupta, articulated the significant role that Polygon plays in making self-custody feasible for day-to-day spending. He emphasized the advantageous combination of blockchain transparency with the expected speed and reliability for users.
Notably, Polygon has made strides in the decentralized finance (DeFi) space, currently holding $1.27 billion in total value locked across 775 protocols, ranking it as the 11th largest chain by this metric. In January, Polygon Labs further expanded its influence in the sector by acquiring two regulated U.S. crypto companies, Coinme and Sequence, enabling it to operate as a regulated payments platform across 48 states in the U.S. This evolution signifies the ongoing integration of cryptocurrency technology into mainstream financial systems, positioning Tangem Pay as a potential game-changer in the realm of retail payments.
