Quick take:
- Gnosis has teamed up with Visa to launch a web3 ATM card that lets users spend self-custody crypto in Europe.
- Plans are in the pipeline to support transactions in the US and Hong Kong.
- Ginosis Pay aims to bridge traditional payments to web3, by enabling transactions between crypto wallets and other traditional payment methods.
Gnosis is ramping up its web3 onboarding strategy with a partnership with leading global payments company Visa. The two companies will collaborate to develop a web3 ATM card that allows users to spend self-custody crypto assets via traditional payment methods where the card is accepted.
Gnosis Pay will launch during the upcoming major Ethereum event, the Ethereum community conference EthCC in Paris. However, according to the Gnosis co-founder Dr Friederike Ernst, the company is targeting more than just the crypto-native community.
With its goal of bridging the gap between traditional payments and web3, Gnosis’s partnership with Visa aims to accelerate the mass onboarding of users to web3 by linking its self-custody Gnosis Card to traditional payments.
According to Ernst, the ability to spend crypto assets in the real world and vice versa could help remove one of the biggest barriers to entry into the crypto market.
“We’ve always had this really strong line between crypto and the real world. We’re trying to erase this bit by bit so people can use their real-world money in crypto and use their crypto to pay for things in the real world,” Ernst told Tech Crunch, ahead of the Gnosis Card’s anticipated launch in the UK and the EU.
The company also has plans to launch Gnosis Pay in the US by the end of Q3 in 2023, whilst its web3 card is scheduled for further roll-out in Brazil, Mexico, Singapore, and Hong Kong.
Gnosis’ self-custody crypto service has figured out a way to create a profitable economic model. The cost for developing and distributing the card is estimated at about 10 euros per card, while an additional 20 euros will be directed towards engineering and compliance infrastructure. As a result, interested users of the card will part with 30 euros.
Gnosis’ main source of revenue from the card will come from transaction fees while its rapid adoption is expected to drive demand for Gnosis Pay’s native token $GMO token.
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