Wirex taps ZK-proofs for noncustodial crypto debit card issuance

October 5, 2023 Coin Telegraph

Wirex first launched its crypto debit card in 2015 and currently claims over six million customers.

Crypto payment service provider Wirex announced the launch of a zero-knowledge proof (ZK-proof)-based noncustodial crypto debit card service called W-Pay on Oct. 3.

Wirex’s new decentralized solution utilizes zero-knowledge technology and is built on Polygon’s Chain Development Kit (CDK), promising increased scalability and security. Polygon’s CDK has been built with ZK-proofs in focus, enabling companies and users to develop their own ZK-powered layer-2 rail.

ZK-proofs-based scalability solution has become quite popular in the crypto space as the zero-knowledge protocol allows one party to convince another party that something is true without disclosing anything other than the fact that the claim in question is true. Over time, Ethreum and the likes of Polygon have seen the most development related to ZK-proofs.

W-Pay offers a range of ground-breaking features that enable non-custodial wallets and decentralized applications (dApps) to issue non-custodial crypto debit cards. The firm claimed that the decentralized approach would eliminate any third-party risks and ensure that account owners retain sole control over their money.

Some of the key features of W-Pay include swift and secure transactions through the integration of Zero-Knowledge technology as well as Ethereum virtual machine (EVM) compatibility and Account Abstraction (AA), a feature that streamlines transaction processes by eliminating inherent complexities.

The ZK proofs-based decentralized solution enables card transactions up to a predetermined limit and also supports the integration of decentralized applications (dApps) and non-custodial wallets with conventional payment rails. The firm said that W-Pay will usher in a new era of on-chain card payment services.

Wirex created the first payment card with crypto functionality in 2015, enabling users to interchangeably utilize digital and fiat money in daily transactions. Wirex claims to have a customer base of over six million and is a principal member of Visa and Mastercard.

The recent zk-proofs-based decentralized solution from Wirex comes amid difficulties with its card partner UAB PayrNet. Lithuania’s central bank revoked the license of UAB PayrNet in June, forcing the company to shutter its services in the European Economic Area (EEA).

Wirex has not yet responded to Cointelegraph’s request for comments.

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Magazine: Here’s how Ethereum’s ZK-rollups can become interoperable

Binance to halt crypto debit card in Latin America, Middle East

August 24, 2023 Coin Telegraph

Binance

Binance didn’t reveal the exact reason behind the suspension but claimed it would only impact 1% of users in the affected regions.

Cryptocurrency exchange Binance will suspend its crypto debit card services in Latin America and the Middle East from Aug. 25.

The crypto debit card worked like other debit cards, allowing users to pay for day-to-day goods and services. The only difference is that these cards were funded by cryptocurrency assets.

The crypto debit card services in Latin America and the Middle East will be terminated by Sept. 21, but the exchange claimed refunds and disputes can still be processed until Dec. 20, 2023.

*Binance crypto debit card interface. Source: X*

The issue first came to light when an X (formerly Twitter) user enquired about issues with crypto debit cards in Colombia. Binance responded to the query with an announcement suggesting that debit card services will be suspended starting Aug. 25 without clarifying what led to the decision.

Hello there,
The Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets. Only a tiny…
— Binance Customer Support (@BinanceHelpDesk) August 23, 2023

Binance first announced its plan for crypto-backed debit cards in April 2020 as it aimed to enter the global payment market. By July 2020, the crypto debit cards were being shipped to European countries and several others worldwide. The crypto exchange later partnered with payment processor Swipe, with intentions to offer crypto debit cards in the United States.

Cointelegraph reached out to Binance about the possible reasons behind suspending its crypto debit cards in Latin America and the Middle East, but the exchange did not provide this information. However, Binance told Cointelegraph that “only a tiny portion of our users (less than 1% of users in the markets mentioned) are impacted by this.”

While Binance claimed only 1% of such users would be impacted by the decision, some of Binance CEO Changpeng Zhao’s X posts about the announcement and responses to it were deleted.

Magazine: Blockchain games aren’t really decentralized… but that’s about to change

ECB exclusive: Crypto payments ‘not currently cost effective,’ Amex exec says

June 28, 2022 Coin Telegraph

American Express

The American Express executive said that their firm is bullish on crypto and is actively working to incorporate more crypto-related services in the future.

Gonzalo Pérez del Arco, the director of government affairs in South Europe for card payment giant American Express, believes that making payments with crypto is not cost-effective at present.

Pérez’s comments came during an exclusive chat with Cointelegraph editor Aaron Wood at European Blockchain Convention 2022, where he discussed American Express’ current crypto-related plans and future prospects.

Pérez explained that several factors make crypto payments non-feasible in the current market, such as high transaction costs and the willingness of merchants to accept digital payments. However, he noted that crypto payments could become a reality in the future, and his firm is bullish on working in that direction.

He added that the firm is interested in crypto payments "Because it's the right direction that competitors in the market are taking."

Pérez noted that American Express has been betting big on crypto with investments and developments of several crypto use cases through its venture capital arm Amex Ventures. He cited the example of the recently launched crypto reward card in association with Abra, a crypto-focused financial firm.

He said that the decision to launch a crypto reward card program instead of delving directly into crypto payments was because of the low risks involved. He cited the upcoming MICA regulations in Europe that prohibit the tokenization of rewards as one of the key reasons that influenced their decision:

“If you see the MICA regulation that is about to be published in Europe where tokenization of rewards logic program is something that is already contemplated. Membership rewards are something relatively easy to do and low risk compared to other activities in payments that, involve the crypto.”

While American Express is taking cautionary steps in its crypto-approach, other card payment giants such as Mastercard and Visa have been on an expansion spree into nonfungible tokens (NFTs) and Web3.

Visa has been actively working on integrating crypto payment with its network, allowing millions of customers to directly spend their crypto at thousands of merchants across the world. The payment processor giant reported $1 billion in crypto spending in the first quarter of 2021. The firm recently launched an immersion program to help creators build their business with NFTs.

Mastercard on the other hand has moved beyond crypto payments and recently announced a direct NFT purchase option for 2.9 billion cardholders.

Canadian Bitcoin platform Shakepay raises $35M in Series A funding

January 20, 2022 Coin Telegraph

Canadian Bitcoin platform Shakepay raises M in Series A funding

Bitcoin Debit Card

Bitcoin startup Shakepay raised $35 million ($44 million CAD) in Series A funding round, valuing the company at $251 million.

It’s another shake-up for the finance industry as Montreal-based Bitcoin (BTC) startup Shakepay raised $35 million from investors. The fresh funding from the United States-based venture capital firm QED Investors values the company at $251 million.

Founded in 2015, Shakepay allows Canadians to buy and sell BTC and pay their friends. It also supports the purchase of Ether (ETH).

The startup aims to use the funds to consolidate growth, focus on bringing on additional products to market such as the recently launched Shakepay Visa Prepaid Card, and expand the team.

Speaking to Cointelegraph, ShakePay CEO Jean Amiouny said:

Shakepay’s seen demand boom for adopting Bitcoin and we’re really excited about this raise to be able to offer more Bitcoin products to our fellow Canadians."

The funding supports a swathe of encouraging stats for 2021. The company surpassed $6 billion in total volume reaching more than 900,000 customers last year.

According to the Shakepay blog, the company reached 1% of Canada’s population, or 380,000 people, in March last year and 2% of the population in November. The company grew its userbase by 381% in 2021.

Canada is increasingly becoming pro-Bitcoin. A recent survey showed that 62% of Canadians want to get paid in crypto by 2027, while a Bitcoin ETF launched in Canada late last year.

For Shakepay, it’s all about retail adoption, as the group seeks to make “it easy for Canadians to buy and earn the soundest money to ever exist: Bitcoin.”

Jean Amiouny illustrated the company’s vision in the official announcement:

With our Series A funding, Shakepay is excited to welcome QED Investors, who have deep experience in the financial technology industry, and who will support the continued growth of Shakepay’s vision to be a leader in financial applications that help Canadians achieve financial wealth through investing in bitcoin.”

We have to be in the crypto space, Mastercard CEO says

July 30, 2021 Coin Telegraph

Adoption

Mastercard is angling to become the go-to for governments and private entities when testing and rolling out central bank digital currencies or stablecoins.

Traditional card networks are vying to ensure their services remain at the center of new developments in digital assets, whether they be central bank digital currencies or private sector stablecoins.

In an earnings call on July 29, Mastercard CEO Michael Miebach discussed recent developments in crypto and CBDCs, making the pitch that the company was well-positioned to remain a linchpin of intra- and international value flows:

"What we believe we do is bring a perspective to the market as a multi-rail payment provider. We have to be in this space because people are looking for answers."

Mastercard has been highly proactive in keeping up with innovations in digital currency, spurred, in part, by competition with its rival, Visa. In February, Mastercard unveiled plans to support crypto in 2021, paving the way for its nearly one billion users to spend their crypto at over 30 million supported merchants worldwide.

Earlier this week, the company announced a new startup engagement program as part of Mastercard Start Path – an accelerator program aiming to support fintechs and companies working with digital assets, cryptocurrency and blockchain technology. The latest to be onboarded include blockchain oracle startup SupraOracles, blockchain infrastructure provider STACS, digital asset firm Taurus and Mintable, a marketplace for issuing and trading NFTs.

On the public front, the company has also rolled out a virtual testing environment designed to help central banks to simulate issuance, distribution and transactions of CBDCs between multiple parties. The platform is geared for both wholesale and retail CBDC designs and offers practical insight into how, among many other possibilities, a CBDC could be interoperable with existing payment methods and be used to pay for everyday goods and services.

During the earnings call, Miebach argued: “All of these countries have to make a trade-off between existing delivery of financial products and what a CBDC is solving for, whether it's financial inclusion or cross-border payments. We have experience with all of that."

Nor is Mastercard overlooking the stablecoin sector, which has already seen successful currencies like Circle’s dollar-pegged USD Coin (USDC) and is poised for the launch of Facebook-affiliated Diem. Miebach confirmed that the company is readying its network to support stablecoin transactions, providing its issuers meet regulatory requirements and fulfill consumer protection and safety standards.

Visa’s CEO has this year made similarly bullish remarks regarding stablecoins, arguing that their blockchains can be thought of as payment rails similar to RPT or ACH networks. Nor is Visa averse to more volatile crypto assets, viewing them as a store-of-value for which the company can still provide fiat on-ramp services.

Eric Grover, a principal at Intrepid Ventures, told reporters this week that both stablecoins and CBDCs should be “in Mastercard and Visa’s wheelhouse” and that both card networks should engage with these developments “with gusto.”

Earlier this month, Mastercard announced fresh partnerships with Circle, Paxos, Evolve Bank & Trust, and many others on a joint project to enable banks and crypto companies to roll out crypto cards that can be used anywhere that Mastercard is accepted.

Crypto frenzy may be winding down, Visa CFO says

July 28, 2021 Coin Telegraph

Bitcoin Debit Card

This spring, crypto-related transactions using Visa were a significant boost to the company’s cross-border volume, although this effect is beginning to wane.

This year has seen unprecedented growth in the crypto markets, with lucrative knock-on effects for third parties like Visa. This, however, may already be beginning to dwindle, according to the company’s senior executives.

The payments giant’s newly released financial results for fiscal Q3 2021 show bullish figures for cross-border and overseas transactions — a key metric for analysts on the lookout for early signals of pandemic recovery.

Earlier this month, Visa revealed that its crypto-enabled cards had processed more than $1 billion in total spending for H1 2021, registering an impact on overseas volume as crypto users deposited funds into crypto platforms across various jurisdictions. These effects are still visible in the company’s latest results for Q3, with the report indicating that:

“Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, increased 53% on a constant-dollar basis for the three months ended June 30, 2021. Total cross-border volume on a constant-dollar basis increased 47% in the quarter.”

In a fresh interview, however, Visa chief financial officer Vasant Prabhu said that much of the crypto-driven momentum behind higher cross-border spending was in fact limited to the first two months of the quarter.

Highlighting the spike in crypto purchases in April and May, Prabhu noted that it had begun to fall back by June. Given the faltering return to international travel, Prabhu warned that the cross-border volume could be poised to decline without being buoyed up by a booming crypto market.

The overall picture for the past quarter shows that Visa drew in significant revenues from its overseas transaction processing, which is significantly more lucrative for the firm than intra-national spending. Overall, the company reported a 34% year-on-year increase in payments using its cards — keeping in mind that much of the globe was under strict lockdowns last year. The company has also reported net revenues of $6.1 billion for Q3 2021, an increase of 27%, outstripping the $5.86 billion average of analysts’ estimates.

Among recent deals, the report notes Visa’s recent signature of a definitive agreement to acquire Currencycloud, a cross-border payments platform that supports roughly 500 banking and technology clients across over 180 countries. Currencycloud has recently entered a partnership with Ripple, the company behind XRP, to jointly explore new cross-border transactions mechanisms.

Ukrainian e-bank plans to offer Bitcoin trading in July

July 5, 2021 Coin Telegraph

Adoption

Monobank is seeking approval from the National Bank of Ukraine to launch its Bitcoin debit card later this month.

As the Ukrainian government progresses with cryptocurrency-related legislation, a major local e-bank is preparing to launch a debit card featuring Bitcoin (BTC) trading.

Ukrainian online banking application Monobank has completed a pilot integration with a cryptocurrency trading platform, Monobank co-founder Oleg Gorokhovsky announced Monday.

According to the executive, the new integration will enable Monobank users to buy and sell Bitcoin with a debit card. Monobank expects to release the new feature later this month pending approval from the National Bank of Ukraine, Gorokhovsky noted.

Launched in 2017, Monobank operates under the license of Universal Bank owned by tycoon Sergey Tigipko, a former central bank chief and ex-deputy prime minister of Ukraine. As of August 2020, Monobank’s user base reportedly amassed over 2.5 million customers.

Monobank’s Gorokhovsky, who is also a former deputy board chairman at PrivatBank — the largest commercial bank in Ukraine — expressed his optimism about Bitcoin earlier this year. In a Facebook post in February, Gorokhovsky said that Tesla’s $1.5-billion Bitcoin purchase finally convinced him to believe that Bitcoin is here to stay. He also disclosed a substantial personal stake in Bitcoin, predicting that BTC will have hit $100,000 by 2022.

Ukrainian authorities are steadily progressing with a set of digital currency-related bills. Oleksandr Bornyakov, deputy minister of the Ministry of Digital Transformation, announced last Wednesday that the authority recommended the adoption of an updated draft bill “On Virtual Assets” in the second reading.

On Wednesday, the Ukrainian parliament also passed new legislation regulating payment methods, including regulations regarding Ukraine’s central bank digital currency.

P2P Bitcoin Traders in Nigeria Think Outside the Box in the Wake of CBN Restrictions

April 18, 2021 Bitcoin.com

Bitcoin Debit Card

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