BitPay today announced that users on its platform will now be able to purchase cryptocurrency directly in the App with bank cards after it has inked a partnership with payment provider Simplex.
Announced today, the agreement will give BitPay a fiat onramp to conduct and settle crypto transactions, a grey area of business where a gauntlet of KYC requirements and other regulations kick in.
Israeli-based Simplex combines crypto payment processing with fraud prevention technology. It also enables merchants to accept diverse payment methods, including credit card deposits and purchases, with zero exposure to chargeback risk.
“Now, thanks to our partnership with Simplex, you can buy cryptocurrency directly in the BitPay App. With most exchanges, you’re waiting days for access to your cryptocurrency. With BitPay and Simplex, you’re only waiting hours instead of days for the process to go through,” BitPay said.
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Simplex already has a range of connections
BitPay facilitates the acceptance of cryptocurrencies by monitoring, validating, and confirming client transactions on each blockchain. On the merchant side, Bitpay allows clients to settle in Bitcoin, Ethereum, and Bitcoin Cash and has recently added options to settle in multiple stablecoins, including Circle USDC and Gemini Dollar.
Simplex has already signed partnerships with leading crypto exchanges, including Binance and Huobi, among others, to enable users to buy cryptocurrencies with their credit cards. Most recently, it has signed mobile wallet provider Broxus to facilitate buying of bitcoin and ether directly via Telegram.
Although the exact details of the partnership were not disclosed, Simplex often charges 3.5 percent of a transaction, with a $10 minimum purchase amount. The company also applies various restrictions, including a $20,000 maximum for daily transactions when using a credit or debit card, as well as a $50,000 maximum monthly limit.
Speaking about the new partnership, a Simplex spokesman told Finance Magnates that “BitPay has made tremendous progress in their development, achieving critical mass of users that we are very happy to now service with our credit card crypto onramp service.” “I am excited to see how two crypto category leaders work together on advanced services that enhance adoption and usability,” he added.