Partnership Between Binance And Simplex Will Make It Possible To Use Credit Cards For Crypto Purchases
Binance has held down its position as the largest cryptocurrency exchange, based on its adjusted trading volume. In this role, they have made it possible to influence major changes in the industry, which they may be pushing forward with a new relationship with Simplex. The two companies are collaborating to make the purchase of cryptocurrencies easier with credit cards.
The annoucement that the company had chosen this route was published on Thursday, involving the work of the Israel-based payment processing firm. Presently, Simplex has made it possible to purchase with both Visa and MasterCard credit cards, allowing the purchase of Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and XRP. Once purchased, consumers will be able to trade the cryptocurrencies for all 151 tokens that Binance has listed on their exchange.
Binance CEO Changpeng Zhao said,
“The crypto industry is still in its early stages and most of the world’s money is still in fiat. Building fiat gateways are what we need now to grow the ecosystem, increase adoptions, and introduce crypto to more users.”
However, the current policies at Binance still prohibit the use of the service in Iraq, Cuba Afghanistan, and Libya, among others. Additionally, New York, Connecticut, Hawaii, Georgia, New Mexico, and Washington in the United States are unable to use the new credit card purchase option.
Co-founder and CEO of Simplex, Nimrod Lehavi, was quoted in the Binance press release, saying,
“Easy and fast credit card payments, for mainstream users, is a key factor in wider adoption of crypto in general. We’re thrilled to partner up with Binance and together enable a much better, fast and easy experience.”
Simplex is charging 3.5% per transaction, though the total fee has a minimum of $10 to be charged. Daily, users can process up to $20,000 in transactions, though the user will max out at about 2.5 times that much for their monthly limit. The firm added,
“Simplex payment processing is subject to local bank policies. Some issuer banks may decline charges on their own terms, regardless if users reside in a supported jurisdiction.”
Simplex has been around since 2014, supported by a 2016 Series A funding round that collected $7 million for their platform. The main investors at the time include Bitmain and Cumberland Mining, along with the FundersClub and others. In November last year, Simplex partners with KuCoin, allowing traders to use credit and debit cards to cover the cost of Bitcoin, Ether, and Litecoin.
A new fiat-to-crypto exchange was launched by Binance this month in Jersey, a British self-governing island, which allowed investors to use the British pound and the euro for the trading against Bitcoin and Ethereum. They created a similar opportunity in October with Uganda, trading against the Ugandan shilling.