Swiss crypto hardware wallet provider Tangem has revealed that more than 40% of its Tangem Pay transactions originate from Latin America, while over 30% come from the United States, shedding light on the geographical distribution of its emerging payment ecosystem even as physical card availability remains restricted in several key markets around the world.
The disclosure comes on the heels of Tangem’s major product announcement regarding its inaugural physical Visa card. Designed for seamless everyday use, the card enables holders to conduct in-store and online purchases, as well as execute ATM withdrawals globally. However, the initial market rollout is strictly limited to an exclusive batch of 5,000 cards as the company carefully tests and scales the infrastructure required to bridge decentralized assets with traditional financial rails.
According to the company, the innovative payment solution allows users to fund the card directly from their self-custodial wallet interface. In an added layer of financial control and security, users retain the capability to move their funds safely back to their self-custodial wallet if the physical card is ever suspended or closed for any reason.
This hybrid model addresses a long-standing friction point in the digital asset space: bridging the absolute autonomy of self-custody with the widespread acceptance of conventional payment networks. "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 explained regarding the intricate balance between decentralized finance and traditional regulatory frameworks.
The intersection of overwhelming global demand and complex regulatory environments forms a central challenge for modern crypto-native payment solutions. Andrey Ilinskiy, the head of Tangem Pay, elaborated on these systemic hurdles in a statement to Cointelegraph, emphasizing that expanding access to crypto-backed payment cards involves navigating a complex matrix of international laws and banking restrictions.
"It is not simply a question of where people want crypto cards," Ilinskiy told Cointelegraph, adding that "it is where demand, regulation, banking infrastructure and card-issuing requirements happen to line up — and today, those maps do not always overlap."
Tangem Delivers the Cards in Nearly 200 Countries, Excluding Only 20
Despite the regulatory complexities that dictate where crypto payment solutions can safely and legally operate, Tangem confirmed that it is capable of delivering physical Tangem Pay cards to nearly 200 countries worldwide. However, operational and geopolitical barriers mean that service remains unavailable in roughly 20 jurisdictions across the globe.
Among the excluded territories are major nations such as China, Russia, and North Korea, alongside other restricted regions including Palestine. The company clarified that these regional delivery and operational restrictions do not necessarily mirror the domestic regulatory rules governing cryptocurrency ownership or trading itself. Instead, a myriad of external factors—including stringent Know Your Customer (KYC) mandates, international economic sanctions, local banking regulations, and localized card-issuing compliance frameworks—collectively determine the exact geographical footprint where a crypto-linked card can legally be made available to consumers.
"The same conditions that can create demand for crypto as an alternative financial rail can make regulated card issuance more difficult," Tangem noted, highlighting the perpetual tension between regions experiencing economic instability or restrictive traditional banking systems and the strict compliance demands imposed by global payment processors and traditional banking partners.
In tandem with the physical card rollout, Tangem is expanding its value proposition by introducing a competitive cashback program denominated in USDC, the dollar-pegged stablecoin issued by Circle. Under the newly announced structure, eligible purchases will yield cashback rewards at a rate of 1% for Basic tier users, while Plus tier users will enjoy an enhanced reward rate of 2%, further incentivizing everyday spending through the Tangem ecosystem.
As the company prepares for its official showcase of the first physical Tangem Pay cards at the upcoming Token2049 conference in Singapore, the fintech provider continues to monitor evolving global regulations. By positioning itself at the crossroads of self-custodial security and mainstream retail spending, Tangem aims to capture a growing share of the international market, even as it carefully navigates the intricate regulatory maze that dictates where digital assets can successfully intersect with traditional fiat payment networks.
