Digital payment company Flexa is launching a tap-to-pay function for cryptocurrency transactions through near-field communication-enabled hardware wallets.
The new product is the first instance of cryptocurrency tap-to-pay without utilizing a mobile app or internet connection, according to the company. Flexa is supported by hardware wallets like Burner that operate like contactless payment cards but use blockchain transactions rather than traditional banking payment structures.
Inputting their PIN onto the point-of-sale device, customers can then tap their NFC wallet card, which initiates the transaction. The company said the feature provides increased security with the decentralized nature of cryptocurrency.
"People all over the world are waking up to the fact that credit cards are too expensive, too exclusionary, and sometimes just plain broken," said Trevor Filter, co-founder of Flexa, to American Banker. "Our tap-to-pay announcement is less about migrating people to use hardware wallets over credit cards as it is about taking one more giant step toward making digital currency easier to use and spend."
Unlike other tap-to-pay crypto providers, Flexa's payments do not require a mobile app or access to the web. Other products on the market operate as crypto-enabled debit cards and use payment processors rather than working directly with merchants.
"Crypto wallet payments offer more transparent rewards, enhanced control and security, and far better privacy than a credit or debit card can — all things that today's younger consumers are demonstrating drive payment method selection and purchase decisions," Filter said.
The company charges a small acceptance fee to merchants that's equivalent to a third or less than what they pay debit and credit card providers, according to Flexa. There are no fees for consumers at Flexa-accepting merchants. Additionally, payments made with Burner wallets do not require customers to hold ETH to pay for gas on-chain.
"Burners epitomize speed and simplicity, and tap-to-pay payments at retail take that to the next level. Instead of scanning QR codes or fumbling with apps, users can just tap their Burner and go," said Cameron Roberston, founder and CEO at Arx Research, creator of Burner wallets. "Working with Flexa means we're making crypto as easy to spend as cash—without sacrificing control or security."
Flexa has paved the way for many cryptocurrency payment solutions since it was founded in 2018. Last August the company launched Flexa Components, a tool that simplified cryptocurrency payments for merchants through direct, fee-free digital wallet transactions. Users can select their preferred crypto wallets and pay with a mobile app.
Components supports several cryptocurrencies including USDC, bitcoin, ether, sol and litecoin. The company is working with retailers like Chipotle, Barnes & Noble, GameStop, Ulta Beauty and Sheetz.
"On top of our past work to enable instant, zero-fraud payments for more than 99 digital currencies — both in store and online — tap-to-pay is just another way we're working to make these new payments paradigms more accessible and affordable for everyone," Filter said. "We're excited to see how crypto payments transform finance in 2025 and we think tap-to-pay will be a big part of that conversation."
Over the holidays in December, Flexa and Coinbase teamed up to let consumers purchase movie tickets at Regal Cinemas theaters with a 10% discount when they paid with Coinbase Wallet utilizing Flexa's on-chain payment infrastructure.
Filter told America Banker he believes "on the conservative side" it could be five years before the majority of mobile payments are processed over distributed ledgers versus payment card rails.
"We think credit and debit cards have a century-long shelf life, but we'll see cryptocurrency-based payments become commonplace well before that," Filter said.
Currently the new tap-to-pay function will only be available to users with supported hardware wallets and merchants utilizing the company's Point of Sale app available on iPhone and Android, but the company plans to quickly expand. The next step will be expanding to include offline payments from mobile wallets with the Flexa software development kit.
