Simplex, a Givatayim-based fintech start-up providing infrastructure to the cryptocurrency industry, was acquired by payment technology provider Nuvei for $250 million, the companies said over the weekend.
Founded in 2014, Simplex gives crypto markets the infrastructure for users to buy or sell cryptocurrencies using credit and debit cards. Through its fraud and risk management tools, Simplex provides a zero-chargeback guarantee to its customers, resulting in higher conversion rates.
The acquisition will provide Nuvei with an electronic money institution (EMI) license to offer IBAN accounts to end-users and corporations, and offers future banking and card-issuing capabilities. As a principal member of the Visa network, Simplex has permission to issue Visa cards, giving its consumers access to digital currencies daily.
Simplex processed approximately $500 million of total volume in 2020 and is expected to process more than $2.0 billion of total volume in 2021. The company further explains that total volume does not represent revenue earned by Simplex, but rather the total dollar value of transactions processed by merchants under contractual agreement with Simplex and detailed in internal documents.
“Today is a very special day for all of the Simplex team, as well as the entire cryptocurrency community,” said Nimrod Lehavi, Simplex’s cofounder and CEO. “By joining Nuvei, Simplex will be able to fulfill its promise of bridging the gap between the blockchain space and the traditional finance world. We couldn’t have thought of a better partner for us, and we are excited for what the future holds.”
“We expect Simplex to enhance and expand Nuvei’s steadily growing portfolio of alternative payment methods, adding turnkey simplicity to the process of buying and selling cryptocurrency and converting it back to fiat within a user account – ultimately reducing complexity for merchants and consumers,” said Philip Fayer, Nuvei’s chairman and CEO. “Simplex’s infrastructure is a natural fit for Nuvei’s Native Commerce Platform, further strengthening the capabilities and overall value proposition of our single-integration approach to payments.”