Swiss crypto hardware wallet provider Tangem has revealed that over 40% of its Tangem Pay payment volume originates from Latin America, while more than 30% comes from the United States, highlighting distinct geographic demand even as physical card availability remains restricted in various markets around the world.
The figures shed light on the complex intersection of cryptocurrency adoption and traditional financial compliance. Speaking about the unique challenges of bridging decentralized assets with mainstream payment rails, Andrey Ilinskiy, head of Tangem Pay, noted that rolling out crypto-linked payment cards is rarely straightforward.
"It is not simply a question of where people want crypto cards," Ilinskiy told Cointelegraph, adding that the rollout depends heavily on a confluence of factors that do not always align neatly on a global scale. "It is where demand, regulation, banking infrastructure and card-issuing requirements happen to line up — and today, those maps do not always overlap."
The disclosure coincides with a major milestone for the Swiss firm. On Wednesday, Tangem officially announced its first physical Visa card designed for seamless in-store and online purchases, as well as ATM withdrawals. To manage the initial rollout and test operational infrastructure, the company stated that the initial release will be strictly limited to an exclusive batch of 5,000 cards.
The newly introduced payment solution is tightly integrated with the company’s existing ecosystem. Tangem explained that users can fund the physical Visa card directly from their self-custodial wallet. Furthermore, in the event that a card needs to be suspended or closed for security or administrative reasons, users retain the ability to easily move their funds back to their self-custodial wallet, ensuring they maintain control over their digital assets throughout the process.
This architecture speaks directly to the philosophy of self-custody, which removes traditional intermediaries from the equation. However, bridging the gap between decentralized finance and legacy payment systems introduces a completely new set of parameters.
"Self-custody removes one major boundary: there is no custodian standing between the user and their assets," Tangem stated in an overview of the product. "लेकिन when those assets enter a regulated payment network, another set of boundaries appears."
Tangem Delivers the Cards in Nearly 200 Countries, Excluding Only 20
While the global reach of the product is substantial, logistical and regulatory boundaries mean that the physical cards cannot be shipped universally. Tangem reported that it cannot currently deliver physical Tangem Pay cards to roughly 20 countries across the globe. Among the excluded jurisdictions are major nations and politically sensitive regions, including China, Russia, North Korea, and Palestine.
The company clarified that these delivery restrictions do not necessarily mirror the broader rules governing cryptocurrency itself within those regions. Instead, a complex matrix of regulatory hurdles dictates where the product can legally operate. Know Your Customer (KYC) requirements, international sanctions, domestic banking rules, and rigorous card-issuing compliance standards all play critical roles in determining the precise geographical availability of a crypto-linked payment card.
The paradox of the global financial landscape is that regions experiencing severe economic volatility or strict capital controls often exhibit the highest demand for alternative financial rails. However, those exact same economic and political environments frequently present the most formidable barriers to regulated card issuance and traditional banking partnerships.
"The same conditions that can create demand for crypto as an alternative financial rail can make regulated card issuance more difficult," Tangem observed, pointing to the delicate balancing act required to navigate international compliance frameworks while serving a borderless user base.
As part of its strategy to attract and retain users within the competitive crypto payments landscape, Tangem is also introducing a lucrative cashback program. The rewards will be paid out in Circle’s widely used USDC stablecoin. Under the structure of the program, Basic users will be eligible to receive a 1% cashback rate on qualifying purchases, while Plus users will enjoy an enhanced rate of 2% on eligible transactions.
The company is positioning the new offering for major industry visibility. Tangem plans to officially showcase the first physical Tangem Pay cards to the public and industry partners at the upcoming Token2049 conference in Singapore, marking a significant step forward in the firm’s expansion strategy.
