Singapore-based cryptocurrency exchange KuCoin has announced that users on their platform will now be able to purchase crypto with credit cards, via a partnership with payment provider Simplex.
So what can you purchase with your credit card?
KuCoin will initially allow users to buy BTC, ETH and LTC.
This is possible through their partnership with Simplex. For those that aren’t aware of what Simplex is all about. Simplex is an EU leading financial institution providing fraud-free payment processing solutions worldwide.
Simplex processes credit card payments with a 100% guarantee – in case of a fraud chargeback, the merchant gets paid by Simplex. Simplex’s HQ is located in Israel, with subsidiaries in the UK, US, and Lithuania.
Founded in 2014, Simplex works with some of the largest crypto exchanges, wallets and platforms in the world today such as Shapeshift, BRD, Litecoin Foundation, Mycrypto, XAPO and Changelly.
Why do merchants trust Simplex?
Most companies won’t allow people to purchase cryptocurrency using their credit card mainly due to security and fraud issues, however, Simplex is different. Simplex offers a 100% guarantee for merchants that if there are any chargebacks or frauds, the merchant will get paid instantly for the charges.
As of now, KuCoin currently offers 392 trading pairs, meaning users can invest and trade many different coins in one place, without the hassle and fees involved with sending coins between multiple platforms.
In theory, it should allow a lot more new money to enter the market, but a lot of FUD will need to be dispelled – as well as a clean resolution found for the Bitcoin Cash/Bitcoin SV war – for a recovery to be seen.
The move is a significant step forward for adoption in crypto. Many exchanges only allow users to deposit in crypto, making it a long process for new users to get their first cryptocurrency.
As mentioned above, normally it’s not possible to purchase cryptocurrency using your credit/debit card. The current solutions out there are sites like Coinmama or Changelly, both of which are powered by Simplex.