on the crypto
Large payment companies may soon be diving into cryptography for the first time by joining Visa's Fast Track program.
Visa and PayPal: two payment giants in the crypto space
According to an announcement on Tuesday, Visa has invited digital asset wallet provider ZenGo to its Fast Track program. The startup hopes to use the program, which famously backed Bitcoin's Lightning Network and the Fold app, to support the launch of a crypto-integrated payment card for the United States in early 2021.
Crypto apps are the hit of the month, with PayPal entering the space and competing with Square, Robinhood, Bitcoin system, Revolut and Ziglu. ZenGo CEO Ouriel Ohayon talked about the absence of card custody with Visa, which would be what makes the difference compared to PayPal.
Ohayon explained in an interview how their product is the only one that is tied to a user-controlled wallet where users themselves are in control of their funds that remain on-chain.
Visa is still well focused on the value that exists in linking crypto services to physical cards, having just entered into a deal involving the Paxful peer-to-peer digital asset market.
The Visa-ZenGo service
Meanwhile, Coinbase is also rolling out its Visa-branded crypto debit card in the US early next year. The ZenGo payment card allows users to convert their cryptocurrency into fiat so that it can be spent on the Visa network and withdrawn from ATMs.
The wallet uses a technique called multi-party computing (MPC), which breaks long cryptographic keys and can be leveraged to create a more conducive user experience. According to ZenGo, MPC saves customers from having to write down private keys or remember passwords and protects them even if their phone is lost or stolen.
"As a favored network for digital currency wallets, we are thrilled to help innovative fintechs like ZenGo leverage the value of the Visa network," said Cuy Sheffield, head of cryptocurrency at Visa.
Using cryptocurrencies in daily life
When it comes to integrating cryptocurrencies with a user network or point-of-sale payment infrastructure, Visa-supported cards are not much different than PayPal's which aim to connect to over 20 million online customers.
Both offers involve converting cryptocurrency into fiat to make a transaction. But the ZenGo app is much more about current utility than future speculation, Ohayon said.
"We see an increasing number of people who want to use cryptocurrency for their daily life," he said. “Speculation is not what they want. We have real estate agents who are paid in cryptocurrency, we have photographers, DJs, freelancers of all kinds. And these people want to be able to spend their money. "
