Cryptocurrency fintech Simplex has announced the launch of an online crypto banking solution called Simplex Banking. The new financial tool aims to expand the ability of global businesses to operate in the cryptocurrency space by providing digital bank accounts licensed in the European Union.
The new solution by Simplex creates a unique personal IBAN (International Bank Account Number) for each account, representing the same level of regulatory security one would find in a physical banking institution.
The move is expected to help Simplex onboard businesses and sole traders from across the European market, while the Asian market, which remains a hotbed of cryptocurrency activity, is also highly sought after.
The Simplex Banking account offers a free Visa debit card for cryptocurrency users, provides support for more than 45 cryptocurrencies, and incurs no monthly management fees. Simplex also promises no maximum limits on purchases, and guarantees no chargeback fees. Its new product is likely to prove popular with businesses that ship globally, as it will support low-cost currency exchange, and the ability to send and receive funds using a range of digital payment options.
Simplex CEO Nimrod Lehavi said the product launch was the culmination of efforts which have seen the firm push to break new ground since it commenced operations in 2014. Lehavi said:
“Simplex has forged new methods of enabling mainstream adoption of crypto assets, through the seamless and safe purchase of cryptocurrencies with credit and debit cards. Simplex Banking is the natural expansion of our offering, fiting the growing needs of the market, namely to easily buy and sell crypto assets, safely, with no maximum limits and a range of payment options.”
The ‘Great Game’ of Online Banking
Analysis of banking trends in 2020 revealed the number of Americans who primarily operate an online bank account jumped 67% from January into July alone. That number may well have been boosted by the panic incurred by the coronavirus crisis, however the fact remains that 6% of Americans now do all of their banking online.
The tidal shift to the online realm is evidenced by such statistics, and is accelerated greatly within the sub-realm of cryptocurrency and blockchain. Yet as users shun traditional finance in favour of crypto, the established finance giants are refusing to give up ground so easily.
Online payments giant PayPal (PYPL) announced in October that it would enter the cryptocurrency market by allowing the purchase and sale of digital currencies for users of its service. PayPal also provides a cryptocurrency storage service for Bitcoin, as well as other leading digital currencies Ethereum, Bitcoin Cash, and Litecoin.
Simplex is now emerging as a neobank alternative that can compete with the likes of Monzo, Neteller, and PayPal. Through its network of exchange and lending partners, Simplex is able to onboard users using SEPA and SWIFT as well as off-ramping through them. Simplex Banking will also allow JCB, CUP, and Yandex as payment methods in the near future. The service, which has been running in beta for several weeks, has processed more than €1M in deposits.
Disclosure: None. Insider Monkey News Department isn’t involved in the production of this article.