diff --git a/src/app_service/common/conversion.nim b/src/app_service/common/conversion.nim
index bd38d0127e..1efa946aa9 100644
--- a/src/app_service/common/conversion.nim
+++ b/src/app_service/common/conversion.nim
@@ -1,6 +1,11 @@
 import strutils, strformat, stint, chronicles
 from web3 import Address, fromHex
 
+const CompressedKeyChars* = {'0'..'9', 'A','B','C','D','E','F','G','H','J','K','L','M','N','P','Q','R','S','T','U','V','W','X','Y','Z','a','b','c','d','e','f','g','h','i','j','k','m','n','o','p','q','r','s','t','u','v','w','x','y','z'}
+
+proc isCompressedPubKey*(strPubKey: string): bool =
+  return strPubKey.startsWith("z") and strPubKey.len == 49 and allCharsInSet(strPubKey, CompressedKeyChars)
+
 proc parseAddress*(strAddress: string): Address =
   fromHex(Address, strAddress)
 
diff --git a/src/app_service/service/contacts/async_tasks.nim b/src/app_service/service/contacts/async_tasks.nim
index 3f32ce46d0..38c9b523c9 100644
--- a/src/app_service/service/contacts/async_tasks.nim
+++ b/src/app_service/service/contacts/async_tasks.nim
@@ -2,6 +2,7 @@ import os, parseutils
 import ../ens/utils as ens_utils
 
 include ../../common/json_utils
+from ../../common/conversion import isCompressedPubKey
 include ../../../app/core/tasks/common
 
 #################################################
@@ -19,12 +20,13 @@ const lookupContactTask: Task = proc(argEncoded: string) {.gcsafe, nimcall.} =
   var pubkey = arg.value
   var address = ""
 
-  if (pubkey.startsWith("0x")):
-    var num64: int64
-    let parsedChars = parseHex(pubkey, num64)
-    if(parsedChars != PK_LENGTH_0X_INCLUDED):
-      pubkey = ""
-      address = ""
+  if (pubkey.startsWith("0x") or isCompressedPubKey(pubkey)):
+    if pubkey.startsWith("0x"):
+      var num64: int64
+      let parsedChars = parseHex(pubkey, num64)
+      if(parsedChars != PK_LENGTH_0X_INCLUDED):
+        pubkey = ""
+        address = ""
   else:
     # TODO refactor those calls to use the new backend and also do it in a signle call
     pubkey = ens_utils.publicKeyOf(arg.chainId, arg.value)
diff --git a/src/app_service/service/contacts/service.nim b/src/app_service/service/contacts/service.nim
index 1d83dd5295..3c07ea0878 100644
--- a/src/app_service/service/contacts/service.nim
+++ b/src/app_service/service/contacts/service.nim
@@ -17,6 +17,7 @@ import ../../../backend/utils as status_utils
 export contacts_dto, status_update_dto, contact_details
 
 const PK_LENGTH_0X_INCLUDED = 132
+const PK_LENGTH_COMPRESSED = 49
 
 include async_tasks
 
@@ -282,8 +283,9 @@ QtObject:
     # we must keep local contacts updated
     self.contacts[contact.id] = contact
 
-  proc addContact*(self: Service, publicKey: string) =
+  proc addContact*(self: Service, chatKey: string) =
     try:
+      let publicKey = status_accounts.decompressPk(chatKey).result
       var contact = self.getContactById(publicKey)
       if not contact.added:
         contact.added = true
diff --git a/src/backend/accounts.nim b/src/backend/accounts.nim
index a744e7c054..fa4c4e297f 100644
--- a/src/backend/accounts.nim
+++ b/src/backend/accounts.nim
@@ -11,6 +11,7 @@ logScope:
 
 const NUMBER_OF_ADDRESSES_TO_GENERATE = 1
 const MNEMONIC_PHRASE_LENGTH = 12
+const PK_LENGTH_0X_INCLUDED = 132
 
 const GENERATED* = "generated"
 const SEED* = "seed"
@@ -52,6 +53,23 @@ proc generateAddresses*(paths: seq[string]): RpcResponse[JsonNode] {.raises: [Ex
     error "error doing rpc request", methodName = "generateAddresses", exception=e.msg
     raise newException(RpcException, e.msg)
 
+proc decompressPk*(publicKey: string): RpcResponse[string] =
+  discard
+  if publicKey.startsWith("0x04") and publicKey.len == PK_LENGTH_0X_INCLUDED:
+    # already decompressed
+    result.result = publicKey
+    return
+
+  var response = status_go.multiformatDeserializePublicKey(publicKey, "f")
+  # json response indicates error
+  try:
+    let jsonReponse = parseJson(response)
+    result.error = RpcError(message: jsonReponse["error"].getStr())
+  except JsonParsingError as e:
+    let secp256k1Code = "fe701"
+    response.removePrefix(secp256k1Code)
+    result.result = "0x" & response
+  
 proc compressPk*(publicKey: string): RpcResponse[string] =
   let secp256k1Code = "0xe701"
   let base58btc = "z"
diff --git a/ui/imports/utils/Utils.qml b/ui/imports/utils/Utils.qml
index ffb40b4c57..c6c54335b2 100644
--- a/ui/imports/utils/Utils.qml
+++ b/ui/imports/utils/Utils.qml
@@ -13,7 +13,8 @@ QtObject {
     }
 
     function isChatKey(value) {
-        return startsWith0x(value) && isHex(value) && value.length === 132
+        return (startsWith0x(value) && isHex(value) && value.length === 132) || 
+               /^z[123456789ABCDEFGHJKLMNPQRSTUVWXYZabcdefghijkmnopqrstuvwxyz]{48}$/.test(inputValue)
     }
 
     function isValidETHNamePrefix(value) {