New Partnership Allows Eidoo To Issue Crypto Debit Cards
- Through its new partnership with Contis, a principal member of Visa Europe, Eidoo can now issue crypto debit cards in the U.K. and Europe.
- The firm will use smart contract-based atomic swaps and regulated stablecoins for its crypto-to-fiat conversion.
Eidoo CEO Thomas Bertani. MONEY IN CRYPTO
Swiss DeFi platform Eidoo has partnered with a principal member of Visa Europe to issue a crypto debit card directly connected to the platform’s wallet, the Finance Magnates reported on 25 May.
According to the report, the Eidoo Card’s approval by Visa comes as part of the company’s partnership with Contis, a principal member of Visa Europe and holder of a U.K. e-money license. Aimed at users in the U.K. and Europe, the new card will enable Visa merchants to accept crypto-derived fiat currencies, such as the British Pound (GBP) and Euro (EUR).
Thomas Bertani, the CEO of Eidoo, said in a statement:
“Eidoo Card is non-custodial and designed so users maintain full control over their crypto at all times. It’s designed for the DeFi economy and with financial autonomy built-in. We also want to ensure Eidoo Card offers an unparalleled crypto experience, making it even more accessible, enjoyable, and global.”
Bertani has further said that Visa has also approved the crypto-to-fiat conversion through smart contract-based atomic swaps, and regulated stablecoins issued by Moneyfold, a U.K.-based financial services firm focused on fiat-pegged stablecoins. In order to gain the trust of its customers, Eidoo plans to connect its cards to its non-custodial Eidoo crypto wallet, giving full control to the users.
Bertani explained the process:
“People have a given crypto token, they sell it for the stablecoin via DeFi DEXes like Uniswap. Then the regulated stablecoin obtained from there is topped up with a 1:1 exchange rate (1 Moneyfold EUR = 1 EUR) on the crypto card when the payment occurs.”
In order to obtain the Eidoo Card, users will need to first stake or burn the platform’s native token, EDO. The firm claims that around 2,700 cards have already been pre-ordered, and that more than 3 million EDO tokens have been staked to date.
The demand for crypto debit cards has been steadily increasing as of late, and many companies have started offering such services. Earlier this month, South Korean tech giant Samsung partnered with Swipe, enabling users to directly connect their Swipe debit card to Samsung Pay, the mobile giant’s payment platform. Users of the Swipe Visa card can now make crypto payments in the United Kingdom and the E.U. using their Samsung smartphones and smartwatches.
- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
Shutterstock
- The payments giant has proposed the creation of new self-custodial wallets, called “delegable accounts”, using the “account abstraction” (AA) method.
- As Ethereum does not yet support AA, Visa implemented its new wallet type on layer 2 scaling solution StarkNet, and successfully enabled automated recurring payments.
- The “Visa Global Back to Business Study – 2022 SMB Outlook” revealed that 73% of small businesses thought new digital payments were important to their growth.
- 24% are already planning to accept crypto as payments, while 82% said they would implement “some” form of digital payments in 2022.