Coinbase Wallet to Launch Tap-to-Pay Solution, Eyeing Competition with Payment Giants

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Coinbase Wallet is gearing up to launch a Tap-to-Pay feature aimed at positioning the platform as a formidable competitor to payment giants like Cash App, Venmo, and PayPal. This upcoming functionality is designed for the non-custodial Coinbase Wallet, currently in its internal testing phase, with full implementation expected soon.

Speaking at DevCon in Bangkok, Jesse Pollak, Coinbase Wallet lead and the creator of Ethereum layer 2 solution Base, revealed the team’s ambitions to establish a streamlined, worldwide payment option for merchants using the wallet.

Pollak highlighted the distinct advantages of the Tap-to-Pay feature, explaining how it could transform the payment landscape. “We can offer a more efficient, globally accessible experience for merchants, no matter where they operate,” he said. Coinbase aims to have the wallet functioning in 50 countries by the close of 2025, broadening the financial scope for both merchants and consumers.

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Coinbase Empowering On-Chain Payments

Coinbase’s vision includes enabling bank account connectivity with the wallet to simplify payment options. Pollak emphasized that integrating users’ bank accounts will allow them to manage everything—savings, spending, and investing—on-chain. This shift is anticipated to yield better interest rates, faster transactions, and lower fees, making the service attractive to a global audience.

A key component of this ecosystem will be off-ramping capabilities to convert stablecoins such as USD Coin (USDC) and Tether (USDT) into local currencies, helping create a seamless flow of funds. Pollak remains optimistic about stablecoin circular economies, which, though nascent, could rapidly expand as merchants begin to see the advantages of low-cost, efficient crypto payments.

Addressing Ethereum Layer 2 Interoperability

In tandem with the Tap-to-Pay launch, Coinbase’s Base is also working on solving a significant hurdle in the Ethereum ecosystem: layer 2 (L2) interoperability. Currently, L2 solutions like Arbitrum and OP Mainnet face challenges in exchanging assets across networks.

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Pollak noted that over the next six months, Base aims to streamline crosschain transactions through standards like ERC-7683 for crosschain transfers and RIP-7755 for secure execution. These updates will allow users to transfer tokens effortlessly across Ethereum L2s, facilitating broader use cases.

With an interoperability solution, Coinbase Wallet could be a central hub for transactions on all Ethereum L2s, opening up new avenues in the $42 billion L2 market, according to L2BEAT data.