Starting with WalletConnect Pay launch: Why are crypto financial cards destined to fail?

As stablecoins and crypto payments gradually move out of the crypto-native scene, whether physical retail can truly connect with this trend has become a key industry focus. WalletConnect recently announced its partnership with Ingenico, the global leader in POS terminals, to enable stablecoin payments to be directly integrated into everyday checkout processes. On the other hand, the necessity of crypto financial cards is once again under discussion.

One-Click Wallet Payment: WalletConnect Pay Officially Launches

WalletConnect CEO Jess Houlgrave announced on Friday that WalletConnect Pay has reached a partnership with Ingenico, allowing its payment services to be deployed across a network of over 40 million POS terminals in more than 120 countries worldwide.

The service is expected to be initially available from today to acquiring banks and payment service providers (PSP), with plans to launch first in Europe in the first to second quarter of 2026.

The core of this integration is “not changing existing merchant infrastructure.” Consumers only need to scan a QR code with their crypto wallet to complete payments using stablecoins, while merchants continue to operate within their familiar payment frameworks. This allows crypto payments to be embedded into mainstream retail environments with relatively low friction for the first time.

What Makes Stablecoin Payments Attractive? Lower Costs and Instant Settlement

Houlgrave emphasized the practical benefits for businesses when explaining the positioning of WalletConnect Pay. She pointed out that traditional credit card processing fees typically range from 2% to 3%, which can amount to a significant cost for large retailers with annual transaction volumes in the hundreds of billions of dollars:

In contrast, stablecoin payments can complete transactions at lower costs and settle almost instantly, reducing the cash flow burden on merchants.

For large enterprises, this can improve operational efficiency; for small and medium-sized businesses, it can serve as an alternative to reduce payment costs.

Re-emergence of Crypto Financial Card Issues: Fees and KYC Privacy Concerns

Following the announcement of WalletConnect Pay, Pavel Paramonov, founder of Hazeflow, reiterated his stance: “Crypto financial cards are dead.”

He previously wrote an article titled “Crypto Financial Cards Have No Future,” pointing out that crypto financial cards not only fail to disrupt traditional payment systems but also reinforce the power structures of banks and Visa, and still face issues such as high fees, KYC privacy concerns, and over-reliance on intermediaries.

In comparison, stablecoin payments directly at POS terminals are cheaper, faster, and settled on-chain in real-time, further illustrating that crypto financial cards are merely transitional products in crypto payments.

(Are Crypto Financial Cards Just Doing Visa’s Bidding? Breaking Down the Bottlenecks and Challenges of Crypto Payments)

From Transitional Solutions to Native Payments: The Next Step in Crypto Payments

From an industry perspective, the partnership between WalletConnect Pay and Ingenico signifies that crypto payments are moving beyond the “financial card” stage toward more native on-chain implementations. For example, Trip.com, a subsidiary of Ctrip Group, has enabled USDT and USDC payments through Singapore-based payment settlement provider Triple-A, which is also seen as a transitional option for crypto payments.

(Trip.com Quietly Opens Stablecoin Payments—Are Booking Flights and Hotels Cheaper?)

As stablecoin regulation and payment infrastructure continue to mature, more physical stores are expected to accept digital asset payments in the future. In this transition, the value of crypto financial cards is undoubtedly facing long-term challenges.

This article begins with the launch of WalletConnect Pay: Why Crypto Financial Cards Will Ultimately Fail. Originally published on Chain News ABMedia.