Binance, the leading cryptocurrency exchange by volume, has enabled users to purchase crypto via credit card directly on the platform. The move allows for Binance’s global user base to more easily purchase cryptocurrency.
The new feature is enabled by Binance’s new partnership with Simplex, an Isreali-based credit card payments processing company. Using Simplex, users on Binance can use Visa or Mastercard to purchase Bitcoin, XRP, Ethereum, Litecoin, Stellar, and NEO.
Changpeng Zhao, or CZ, the CEO of Binance had this to say about the integration:
“We want to provide Binance traders with fast and easy access to crypto, in the most secure way possible. Partnering with Simplex allows us to instantly bridge the gap between credit card payments and crypto for traders globally. On Binance.com, you can now buy crypto with credit cards and start trading in minutes.”
Meanwhile, Nimrod Lehavi, the co-founder and CEO of Simplex said:
“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.”
Difficulty Implementing Credit Card Payments
One of the reasons that some exchanges charge a high fee for processing credit cards, or refuse these payments altogether, is chargeback risk. In extreme cases, there are instances where fraudsters gain unauthorized access to a credit card and purchases crypto. Once the owner of the card regains control, credit card companies will issue a chargeback and sometimes pass the cost on to the merchant.
Simplex solves this problem through “guaranteed fraudless payment processing.” Unlike some credit card companies, Simplex will absorb any costs related to chargebacks.
Binance’s Recent Traction
Recently, Binance has been on a spree of strategic moves. Binance recently launched two fiat-to-crypto exchanges, with Binance.je supporting the trading of Euros and British Pounds with crypto, and Binance Uganda supporting Ugandan Shillings. Binance’s revamped Launchpad successfully facilitated the BitTorrent ICO, one of the largest of the year, and the exchange announced a new DEX aimed at solving Ethereum’s scaling issues.
“The crypto industry is still in its early stages and most of the world’s money is still in fiat. Building fiat gateways is what we need now to grow the ecosystem, increase adoption and introduce crypto to more users,” said CZ.
Unencumbered by stringent regulations or looming security threats, it seems likely that Binance will retain its position as a leading crypto exchange in 2019.
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