Tangem launches physical Visa card, says crypto card access lags demand
In brief
- Tangem announced its first physical Visa card on Wednesday, with an initial release of 5,000 cards.
- Latin America accounted for over 40% of Tangem Pay payments and the US for over 30%, Tangem says.
- Tangem says it can't ship physical cards to roughly 20 countries, including China and Russia.
- USDC cashback rates are 1% for Basic users and 2% for Plus users, Tangem announced.
What Tangem announced
The first release of the physical card is limited to 5,000 cards, according to the company. Tangem said users can fund the card directly from their self-custodial wallet. If the card is suspended or closed, they can move the funds back to that wallet.
Tangem is also adding cashback in Circle's USDC stablecoin. It says eligible purchases will earn 1% for Basic users and 2% for Plus users. Those are the announced terms, and there's no track record yet.
Tangem plans to show the first physical Tangem Pay cards at Token2049 in Singapore.
Where the card can't go
Tangem said it can't currently deliver physical Tangem Pay cards to roughly 20 countries, including China, Russia, North Korea and Palestine.
According to the company, those limits don't necessarily follow the rules that govern crypto itself. Tangem said Know Your Customer (KYC) requirements, sanctions, local banking rules and card-issuing compliance can each decide where a crypto-linked card is available.
“Self-custody removes one major boundary: there is no custodian standing between the user and their assets. But when those assets enter a regulated payment network, another set of boundaries appears,” Tangem said.
Demand versus access
The company's view is that demand for crypto cards can be stronger in places where access is harder. Tangem said the conditions that create demand for crypto as an alternative financial rail can also make regulated card issuance more difficult. It's making that case as it expands its self-custodial payment offering through Visa.
Andrey Ilinskiy, head of Tangem Pay, made a similar point in an interview with Cointelegraph. He said it isn't simply a question of where people want crypto cards. Availability depends on where demand, regulation, banking infrastructure and card-issuing requirements happen to line up, and today those don't always overlap.
Frequently asked questions
Why can't Tangem deliver its physical card to some countries?
Tangem said it can't currently deliver physical Tangem Pay cards to roughly 20 countries, including China, Russia, North Korea and Palestine. According to the company, KYC requirements, sanctions, local banking rules and card-issuing compliance can all decide where a crypto-linked card is available. Those rules don't necessarily match the rules for crypto itself.
How is the Tangem Pay card funded?
Tangem said users can fund the card directly from their self-custodial wallet. If the card is suspended or closed, they can move the funds back to the wallet. The card works for in-store and online purchases and for ATM withdrawals.
What cashback does the Tangem Pay card offer?
Tangem announced cashback paid in Circle's USDC stablecoin. The announced rates are 1% for Basic users and 2% for Plus users on eligible purchases. These are the company's stated terms.
