Nuvei Corporation, Canada’s largest private non-bank payment processor, announced its plans to acquire Simplex, a fintech startup for $250 million. The deal is expected to close in the second half of this year.
Simplex is a fiat-to-crypto gateway processor that allows users to purchase cryptocurrencies using debit/credit cards. Becoming a principal member of the Visa network in December, the firm processed more than $500 million transactions in 2020 and is expected to process above $2 billion in 2021.
The risk-free solutions of Simplex such as its zero chargeback guarantee and its instant, seamless payment network has bolstered consumers trust in the firm. Simplex also has a robust infrastructure, making it one of the top impactful companies in blockchain in 2020.
Through the partnership Nuvei will have access to an electronic money institution (EMI) license, hence, will be able to offer IBAN accounts to end-users. The Canada-based processor will also be able to issue cards and offer future banking services.
Simplex Will Expand our Payment Methods – Nuvei CEO
Nuvei’s Chair and CEO, Philip Fayer, said that the partnership with Simplex is expected to expand and improve their payment methods. According to the official announcement, the deal will be settled in cash.
The e-commerce platform of Nuvei connects merchants across 200 markets and has 400+ alternative payment methods, including cryptocurrencies. Fayer noted that Simplex’s simple infrastructure will make it easier for customers to buy and sell cryptocurrencies.
The partnership reiterates Simplex’s commitment to bridging the gap between blockchain and traditional finance systems, says Nimrod Lehavi, Simplex Co-founder and CEO. Lehavi added that they are thrilled about the partnership and the journey ahead.
The acquisition bolsters the notion that electronic payments processing firms are turning to cryptocurrencies. Visa’s move to embrace cryptocurrency has further strengthened the mainstream’s adoption of digital assets.