Can non-custodial cards offer the same benefits?

[Crypto Library]

Recently, I came across a news that Wirex's partnership with Cardano Card is going to end on Oct. 31, 2026. and at the same time, their partnership here is going to be closed.

As far as I understand, the reason is that Wirex is going to shift from their custodial infrastructure to a non-custodial model.

We all know the benefits of non-custodial in the case of crypto wallets, but how is it possible to provide non-custodial services here, where Wirex provides digital payment services like Visa Card and will it actually work?

I would like to know from you both the pros and cons of this.

[PrivacyG]

They are probably talking about Wirex One.  I read a lot about it but I still do not understand it entirely so I may be wrong.  But it sounds like it is a non custodial Cryptocurrency Wallet with the option to also order a custodial card.  So when you want to spend using the card, you will have to send from your non custodial Wallet to their custodial Wallet.

[_act_]

This has been exciting since May of this year when WireX partnered with SecondFi which allow people to spend coins directly from their noncustodial wallet.

The card is different from custodian because on custodial, it would be WireX that will managed the coins for you just like bank. But with the new card,

I am not a WireX user, so my information may not be completely accurate.

[The Cryptovator]

We all know the benefits of non-custodial in the case of crypto wallets, but how is it possible to provide non-custodial services here, where Wirex provides digital payment services like Visa Card and will it actually work?

I would like to know from you both the pros and cons of this.

When the card issuer itself is centralized and custodial like Visa or Mastercard, then how is a provider could provide non custodial card? The wallet would be noncustodial, but the card section has to be custodial. It’s debit or prepaid card, and then we have to top up the card before we use it. Wirex won’t take the risk by providing credit card service at all.

I can’t recall, but I think there is an existing one like MetaMask; probably they charge during checkout. Their model is that they convert crypto real-time value in fiat and check out. Until checkout, the funds are still kept on the noncustodial wallet. You may search more on the Metamask card. You may search over the internet for how it works in detail. Another model is to top up the card from the noncustodial wallet before you check out.

[Z-tight]

Wirex is simply moving to a new app, called Wirex One and now customers will have custody of their digital assets, unlike in the legacy Wirex app. So it is simple, their services more or less remains the same, except probably a better UX in their new app and the new self custodial feature for digital assets. Your Wirex card works just as it did before the transition.

You can find all the answers you seek here: https://help.wirexapp.com/article/wirex-one-upgrade-faq-1685

[noorman0]

-snip-
but how is it possible to provide non-custodial services here, where Wirex provides digital payment services like Visa Card and will it actually work?

In the article it is clear that some advantages were removed in the transition version although I doubt they are completely retired (explanation below):

It relied on Wirex’s custodial infrastructure to hold and settle user funds, the same infrastructure Wirex is now retiring.

-snip-

When the card issuer itself is centralized and custodial like Visa or Mastercard, then how is a provider could provide non custodial card?

Users still need to register and verify in the upgraded version. So I imagine they are still implementing the features of the old card version so that it can function as a card connected to the global fiat payment system.

What if my account isn't eligible for the upgrade? 
If you can't see the upgrade option in your Wirex app, it's most likely because your account verification is still pending or incomplete. 

You have two straightforward options: 

•  Complete verification in the current Wirex app. Once done, the app will reflect your eligibility and you can upgrade seamlessly. 

•  Set up a new account directly in Wirex One. Download the app and complete your account setup from scratch — you'll get full access to the Wirex One experience right away. 

[Z-tight]

Users still need to register and verify in the upgraded version. So I imagine they are still implementing the features of the old card version so that it can function as a card connected to the global fiat payment system.

No, nothing is changing about how Wirex cards work, the only thing changing is how user funds are handled in the Wirex app. In the legacy app, Wirex manages user funds, in Wirex one, users manage their accounts themselves, through account keys.

In your current Wirex account, assets are held and managed on your behalf by the platform. Wirex One changes that: it's built around true ownership, meaning your funds are secured by account keys that belong only to you.

You can still spend funds in your Wirex account through your card, anywhere they are accepted. Wirex and Cardano are ending their partnership because it was a custodial in nature, with users depositing funds into the Wirex system, which allows them spend ADA and other coins through the Cardano card. Now that the service is switching to a self custodial model, the partnership naturally has to end.

[PX-Z]

I would like to know from you both the pros and cons of this.

Pros of this is like any other non-cutodial wallets, enhance privacy, avoid third party risk like bankruptcy, etc.

Cons are the same too, once backup lost, or lose any of the recovery method, those funds are lost. Also the conversion to fiat might be in higher rate at your advantage, also fees might be so high since youre not the one controlling it, but wirex.

[PrivacyG]

Users still need to register and verify in the upgraded version. So I imagine they are still implementing the features of the old card version so that it can function as a card connected to the global fiat payment system.

Know Your Customer and non custodial are pretty contradictory, and if the Wallet your card money sits on is non custodial then the Know Your Customer and Anti Money Laundering would be pretty pointless.  It sounds like the non custodial part acts like a physical wallet with bank notes in it while the Know Your Customer part acts like a bank account.  You want to use the card, you lose custody of how ever much money you want to use with it.