Kolo is a financial application and hybrid crypto wallet designed to integrate cryptocurrency with traditional fiat currency systems. The platform provides a unified interface for users to spend, send, and manage their digital assets, primarily through a virtual payment card that enables the instant conversion of crypto to local fiat currency at the point of sale. ^[1]​

Overview

Kolo was developed to address the challenge of using cryptocurrencies for everyday transactions. Its core function is to allow users to spend their crypto holdings seamlessly in real-world scenarios by converting them into the local fiat currency at the moment of payment. This makes digital assets usable at any merchant that accepts major payment cards, bridging the gap between the digital asset economy and conventional financial infrastructure. ^[1]​

The service operates as a mobile application that combines a crypto wallet, exchange functionalities, and a virtual payment card. The platform is built around a hybrid wallet that supports multiple blockchains, allowing users to manage a variety of digital assets in one place. The integrated payment card is managed through mobile payment systems like Apple Pay and Google Pay, eliminating the need for a physical card and facilitating both online and in-store purchases globally. The system is designed with a focus on regulatory compliance, incorporating features such as real-time AML screening and a streamlined identity verification process. ^[1]​

Features and Services

Kolo offers a suite of financial tools centered around its virtual card and hybrid wallet, including cashback rewards, direct bank transfers, and in-app asset swaps.

Kolo Card

The primary feature of the Kolo platform is its crypto-funded virtual payment card. This card allows users to make purchases using their cryptocurrency holdings, which are automatically converted to the local currency at the time of the transaction. ^[1]​

• Payment Integration: The Kolo card is a virtual-only card that integrates with Apple Pay and Google Pay. This enables users to make contactless payments at physical stores and complete transactions with online merchants. ^[1]

• Global Acceptance: Through its integration with major mobile payment platforms, the card is accepted wherever Visa or Mastercard is supported. This includes a wide range of merchants, such as online retailers like Amazon and subscription services like Netflix and Steam. ^[1]

• Supported Cryptocurrencies: Users can top up their accounts to fund card-based spending with a selection of cryptocurrencies. The assets supported for this purpose include:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Tether (USDT)
  • Pepe (PEPE)

The platform supports a variety of cryptocurrencies for funding the virtual payment card. ^[1]​

Financial Services

Beyond card payments, Kolo provides additional financial services that enhance the utility of users' crypto assets.

• Bitcoin Cashback: All purchases made using the Kolo card are eligible for a 5% cashback reward, which is paid to the user in Bitcoin (BTC). This incentive program encourages the use of the card for everyday spending. ^[1]

• Crypto-to-Bank Transfers: The platform facilitates direct transfers of cryptocurrency from a user's Kolo wallet to any bank account within the SEPA (Single Euro Payments Area) network. This feature allows for off-ramping digital assets into fiat currency. The service is compatible with traditional banks as well as modern neobanks such as Revolut, Wise, and N26. ^[1]

• Fee Structure: Kolo states that it offers "exchange-level rates" for its currency conversions. For transactions involving specific stablecoins, the platform applies a 0% mark-up. The stablecoins included in this policy are:

  • Tether (USDT)
  • USD Coin (USDC)
  • Euro Coin (EURC)

This fee structure is designed to provide cost-effective conversions for users who transact with these widely used stablecoins. ^[1]​

Hybrid Wallet

The Kolo application includes a built-in hybrid wallet designed for managing a diverse portfolio of digital assets.

• Multi-Chain Support: The wallet is compatible with seven different blockchain networks, enabling users to store and manage a variety of cryptocurrencies from different ecosystems within a single application. ^[1]
• Integrated Swaps: An integrated exchange service, or "swap," allows users to trade one cryptocurrency for another directly within the app. This feature provides a convenient way to rebalance portfolios or acquire different assets without needing to transfer them to an external exchange. ^[1]

Security and Compliance

Kolo emphasizes a "compliant by design" approach, integrating regulatory adherence and security measures into its platform architecture.

• Regulatory Compliance: The platform is positioned as MiCA-ready, indicating its design aligns with the requirements of the European Union's Markets in Crypto-Assets Regulation. It is also compliant with the Travel Rule, which mandates the collection and sharing of originator and beneficiary information for certain crypto transactions. ^[1]
• Anti-Money Laundering (AML): All transactions processed through the Kolo system undergo real-time AML screening to detect and prevent illicit financial activities. ^[1]
• Fraud Protection: Kolo employs a proprietary risk detection system named "Fraud Shield." This feature is designed to identify and mitigate potentially fraudulent activities on the platform. ^[1]
• Identity Verification (KYC): New users must complete a Know Your Customer (KYC) process to verify their identity. This process is powered by the identity verification service Sumsub, and Kolo states that it can be completed in approximately one minute. ^[1]
• Account Security: To protect user accounts, Two-Factor Authentication (2FA) is a mandatory requirement for both logging in and authorizing withdrawals from the platform. ^[1]

Partnerships and Integrations

Kolo's functionality relies on a network of partnerships and integrations with established financial and technology companies.

• Payment Networks: The Kolo card's global acceptance is facilitated through its integration with the Visa and Mastercard networks via its mobile payment partners. ^[1]
• Mobile Payment Platforms: The virtual card is made available to users through direct integration with Apple Pay and Google Pay. ^[1]
• Compliance and KYC: The platform partners with Sumsub to manage its identity verification and KYC processes, ensuring compliance with regulatory requirements. ^[1]
• Banking Integration: Kolo's crypto-to-bank transfer service connects with the SEPA network, enabling users to send funds to a wide range of banks across Europe, including neobanks like Revolut, Wise, and N26. ^[1]