Based in Denmark, Coinify has acquired competing Europe-based payments processor Coinzone and expanding to new territories. The company focuses on extending its buy and sells services to consumers and processing services to merchants and for that it allows businesses to accept Bitcoin and receive next-day settlement in Euros, dollars and kroner, among other currencies.
Now that Coinify has acquired Coinzone it is aiming to expand its merchant base to an estimated 10,000 actively monthly customers, up from 8,000 before the acquisition. Nonetheless, this also means there will be an increase in the number of employees. It has grown its employee base to 17, with the addition of Coinzone’s sales staff.
Shifting Focus from Acquiring Individual Merchants to Payment Service Providers (PSPs)
Coinify that also provides a plug-in for popular merchant-facing e-commerce platforms that will allow merchants that already use BigCommerce, Magento, Shopify and WooCommerce to easily integrate Bitcoin payments, is expected to further expand the reach. Rather than setting up operations it has is often better to go for acquisition, Coinify seems to know it.
Talking about the acquisition, Coinify CFO Christian Visti Larsen said that the purchase comes as his firm is seeking to shift its focus from acquiring individual merchants to payment service providers (PSPs). According to him Coinify is seeking to replicate a model invoked by its US peer Bitnet and seek to partner with larger entities.
He believes that once a company partners with larger entities it is able to provide payments support to thousands of online merchants in far better way than otherwise. According to him more merchants today do business with a PSP and would rather have multiple payment options through a PSP.
Acquisition to Help Coinify Add More Customers
Nonetheless, Christian Visti Larsen also clarified that most of Coinzone’s partners were asking for this service, so it seemed like a perfect match. He commented on the success of this model in the US, where Bitcoin payments are already supported by PSPs such as CardinalCommerce, PayPal and Stripe.
Elaborating his point he suggested it was time for the European market to “step up” its performance and said Coinify is working on as many as eight deals with regional PSPs. Similar views were shared by outgoing Coinzone CEO Manuel Heilmann who said he is seeking to return to the e-commerce industry, but will continue to advocate for the technology.
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