Fintech company, Simplex legitimizes the cryptocurrency market to make it safer and easier for consumers to purchase crypto with their credit or debit card. Here's my full review.

Are you buying and selling cryptocurrencies yet?

I’m sure you have heard of cryptocurrency, like bitcoin, and how it can be used to purchase goods and services. If you are like me, the bulk of my purchases are done digitally. Gone are the days of counting coins or pulling out paper cash. 

While I’m typically not the first to dive into new methods of transacting, I can’t help but wonder if cryptocurrency really could replace our current method of currency. Plus, it’s been scrutinized as a risky investment. If that’s the case, how does all of that digital coin stay protected?

Fin-tech company, Simplex is stepping up to the plate to provide fraud protection and legitimacy to the cryptocurrency world. Simplex’s technology enables merchants, marketplaces, and crypto platforms to process online payments with fraud protection and chargeback coverage.

If you are wary about transacting with cryptocurrency, take a look at how Simplex could make online transactions safer.

Who is Simplex

Simplex Review - Who Is Simplex

Simplex is an EU-licensed fin-tech (financial technology) company that provides fraud protection and processes transactions globally. In addition, Simplex provides the technology for crypto merchants to accept credit card transactions.

The company was created by three founders: Nimrod Lehavi, Erez Shapira, and Netanel Kabala. The trio has an impressive background in online transaction technology. Shapira and Kabala worked for PayPal previously and Lehavi is a board member of the Israeli Bitcoin Association.

A few fast facts about Simplex:

  • Start-up founded in 2014.
  • Based in Tel-Aviv, Israel.
  • 51-200 employees.
  • EU-licensed.
  • $25-$50 million in revenue.

Simplex legitimizes the use of cryptocurrency

If you have been on the fence about cryptocurrency, start-ups like Simplex can help legitimize the game. You can liken it to the protection you might find with using PayPal or Stripe. These are third-party payment processors that keep your transaction information out of hackers’ hands.

According to the Federal Trade Commission, Americans reported losing $1.48 billion to fraud in 2018. The most common type of fraud theft is credit card fraud with more than 77,000 credit card frauds reported in the third quarter of 2019 alone.

Cryptocurrency marketplaces can be a magnet for theft

Simplex - access to crypto securely

Part of the reason why fraudsters go after cryptocurrency is that virtual cash can be difficult to trace. According to Reuters, cryptocurrency theft increased by more than 400% in 2018. That’s roughly $1.7 billion. Simplex offers a solution by working with crypto merchants to learn more about transaction behaviors.

Binance, a crypto trading platform, uses Simplex’s technology to help users gain access to crypto securely.

Partnering with Simplex allows us to instantly bridge the gap between credit card payments and crypto for traders globally,” said Changpeng Zhao, CEO of Binance.

How Simplex works

As with any good start-up tech company, it’s built by experienced tech-savvy staff. Simplex uses a proprietary AI algorithm that learns how you transact online. It collects data points from every user and transaction. Then that information can help mitigate potential fraud. Think of it like the sword of Gryffindor from Harry Potter. It only takes in that which makes it stronger.

Simplex’s AI doesn’t really decline transactions. However, any suspicious transactions are re-routed to further verification through email or SMS. Lehavi says there are a few advantages to their in-flow verification mechanisms.

“First of all, it increases conversion. If you are trying to buy something you’d rather approve your email or your phone number and continue the process instead of being rejected.” 

Plus, fraudsters can’t test for penetration points and trial-and-error processes are exhausted without breaking Simplex’s protection barrier.

Does Simplex accept VISA?

Yes, Simplex accepts VISA and Mastercard credit and debit cards. It currently does not support American ExpressDiscover, or Bank of America cards.

You may want to check with your card carrier first to see if they accept crypto transactions to avoid a potential decline. Also note, pre-paid cards are generally not accepted so you’ll want to avoid using one.

Which cryptocurrencies does Simplex support?

While Simplex itself does not provide cryptocurrency, it partners with a variety of merchants who supply crypto. At the time of this writing, you can purchase these types of crypto through Simplex’s partner sites:

Who Simplex is best for

Simplex meets the needs of crypto merchants and marketplaces who want to provide a way for their users to purchase cryptocurrency online. It also provides credibility for companies. As long as Simplex delivers on its promise of fraud protection, companies could see a boost in their reputation.

Simplex is best for:

  • Crypto merchants and marketplaces — companies who want to provide a secure way for users to purchase crypto with their credit card.
  • Cryptocurrency users — consumers who want to safely convert their currency into cryptocurrency.

Who shouldn’t use Simplex

If you primarily transact with physical cash, then you probably don’t need a company like Simplex. And if you’re not interested in using cryptocurrency, then you more than likely don’t care about the legitimacy of it.

You must be 18 years of age or older to purchase cryptocurrencies using Simplex. You also need a valid government ID and you may be required to submit a photo.

There are several countries that don’t meet the Financial Action Task Force regulation guidelines, so if you live in any of these countries, you can’t currently use Simplex:

  • The Bahamas.
  • Botswana.
  • Cambodia.
  • Democratic People’s Republic of Korea (DPRK).
  • Ethiopia.
  • Ghana.
  • Iran.
  • Pakistan.
  • Panama.
  • Sri Lanka.
  • Syria.
  • Trinidad and Tobago
  • Tunisia.
  • Yemen.

There are also restrictions on where you live within the United States. Currently, the following states are not supported by Simplex at all:

  • Alabama.
  • Florida.
  • Georgia.
  • Hawaii.
  • New Mexico.
  • Oregon.
  • Vermont.
  • Washington.

Limitations of Simplex

If you are interested in cryptocurrency, be aware that Simplex comes with a number of limitations that you’ll want to be aware of.

First and foremost, currently, users are limited to $20,000 in daily transactions and $50,000 in monthly transactions. Second, make sure you watch the fees. Simplex can charge up to 5% per transaction with a $10 fee minimum. And no surprise – that can add up fairly quickly if you want to purchase cryptocurrency frequently and at a high volume. Plus, you may be hit with additional fees from the crypto merchants themselves.

Summary

Simplex blends payment processing with prevention technology for the cryptocurrency market. Crypto companies and users could see benefits from using Simplex’s AI to make cryptocurrency buy and sell practices safe and legitimate.

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About the author

Total Articles: 18
Justine Nelson is a personal finance freelance writer and YouTuber. She enjoys teaching millennials how to eliminate debt and live a debt free lifestyle. Justine paid off $35k in student loan debt in two and a half years on a $37k income. Connect with her on Instagram or her website Debt Free Millennials.

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