Non-Custodial Crypto App, ZenGo, Joins Visa’s Fintech Fast Track Program; Debit Card Launching in 2021
- ZenGo, a crypto wallet app, joins Visa Fast Track program.
- Allow users to spend crypto at any VISA merchant and withdraw from supported ATMs.
Crypto wallet management firm, ZenGo, announced that it had joined the VISA Fast Track Program on Tuesday. Following the partnership, ZenGo will start offering users in the U.S. VISA debit cards, allowing them to spend cryptocurrencies at millions of VISA merchants and withdraw at supported ATMs.
The crypto wallet provider is joining a stream of payment companies, including PayPal, Square, Coinbase, and Paxful, aiming to push for cryptocurrencies in everyday payments. The company enters the debit card space – joining Coinbase, who recently announced their rewards card, and Binance – in a race to push for crypto adoption.
Unlike the rest, ZenGo offers its users a non-custodial wallet, which leaves the user's security. Expounding on the benefits of ZenGo’s non-custodial wallets, ZenGo CEO Ouriel Ohayon said,
“Those other offerings are only a half-vanilla taste of what crypto is because they only let you own an IOU over a cryptocurrency.
This is the only one that is tied to a user-controlled wallet where the users have control of their funds, and the funds are on-chain.”
However, the enhanced self-custodial measures make it difficult and complicated to send and spend cryptocurrencies from your wallet, hence the VISA wallet's launch. ZenGo users will need to convert crypto from their wallet and deposit to their debit card before using it for payment. Regular users can also set a fixed amount to be converted every week and deposited to their debit card.
“The issue if you do it automatically like Coinbase is that you can’t pick which crypto you want to use for spending,” Ohayon said.
“They decide for you, or they force you to make a choice once for all your transactions.”
ZenGo uses Multi-party computation (MPC) techniques to secure its user's accounts, passwords, and private keys by breaking down the long alphanumeric cryptographic code. This also helps in transactions – saving senders from writing down the long wallet address or remember passwords.
The VISA debit card by ZenGo is expected to launch early next year in the U.S. with plans to launch to other countries also in place. ZenGo aims to offer users a convenient, secure, and scalable way to spend cryptocurrencies seamlessly. Ouriel added,
“We have real estate agents who get paid in cryptocurrency; we have photographers, DJs, independent workers of all sorts. Those guys want to be able to spend it.”