Simplex, a cryptocurrency payment processor, will be acquired by Nuvei for $250 million.

Nuvei stock forecast 2021

Nuvei, a Canadian payments firm, will be able to issue crypto banking accounts and Visa cards as a result of the acquisition.

Nuvei, a publicly traded payment technology company in Canada, has announced its intention to purchase Simplex, a crypto payments processor that recently joined the Visa network, for $250 million.

“We expect Simplex to improve and extend Nuvei’s rapidly expanding portfolio of alternative payment methods, bringing turnkey convenience 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, chairman and CEO of Nuvei.

The agreement is scheduled to be signed “in the second half of 2021,” according to the announcement made yesterday. The deal is “subject to customary closing conditions,” including regulatory approval, according to the firms.

Furthermore, since Simplex is an officially licenced “electronic money institution” in the EU, the acquisition would provide Nuvei with a similar “electronic money institution” license. This will allow the company to provide its customers with banking IBAN accounts and card-issuing services.

Bringing cryptocurrency and conventional finance together

Simplex, based in Israel, is a so-called crypto on-/off-ramp payments processor that allows users to convert fiat currency to cryptocurrency and vice versa.

Simplex joined the Visa network as a principal member in December, allowing it to issue the related debit and credit cards. Customers of Simplex can now pay with digital assets at any merchant that accepts Visa.

In January 2019, Binance, the world’s largest crypto exchange by trading volume, integrated Simplex’s solution, enabling its users to purchase digital assets for the first time using credit cards.

Nuvei links merchants in 200 global markets and supports 470 payment types, including 150 fiat currencies and 40 cryptos.

“By partnering with Nuvei, Simplex will be able to deliver on its promise of bridging the blockchain and conventional finance worlds. Simplex co-founder and CEO Nimrod Lehavi said, “We couldn’t have asked for a better partner for us, and we’re excited for what the future holds.”

As Crypto Slate previously mentioned, a number of merchants around the world have begun to accept cryptocurrency payments, especially in the wake of the coronavirus pandemic.

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