BitPay announced today that it will allow users on its platform to purchase digital currency directly with their app using bank cards. The firm has now partnered with Israel-based Simplex to make crypto payment processing easier.
New partnership to reap benefits
The new partnership between BitPay and Simplex will be helpful in creating a robust fiat onramp for the users. Note that the fiat sector is connected to very stringent KYC requirements and a host of other regulations that are absent in the crypto sector. This makes the fiat-crypto touchpoint difficult to navigate for most businesses.
The Israeli company Simplex provides a crypto payment processing alongside its fraud prevention technology. It allows merchants to accept a variety of payment methods, like credit cards without exposing them to the risk of chargebacks. BitPay commented on this partnership, stating, “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.”
How will the new partnership operate?
Neither BitPay nor Simplex have provided details about the partnership. However, we know that Simplex keeps the minimum purchase amount to $10 and charges 3.5% of the transaction fee. It also imposes a $20,000 limit on daily transactions made with debit or credit cards and a $50,000 limit for monthly transactions. The firm already has some high-profile partnerships with Huobi and Binance that lets their users buying digital currencies with credit cards. It also partnered with mobile wallet service provider Broxus to facilitate Bitcoin and Ethereum buying on Telegram.
BitPay, on the other hand, monitors, confirms and validates the client’s transactions on different blockchains. It allows clients to make settlements in Bitcoin, Bitcoin Cash, and Ethereum, alongside Gemini Dollar and Circle USDC. A spokesperson for Simplex acknowledged the progress made by BitPay and the number of users it has accumulated over the years.