Montreal-headquartered payments specialist Nuvei Corporation keeps expanding across the globe, with its UK subsidiary having acquired the scheme licenses to continue acquiring and processing Mastercard and Visa payments for merchants based in the United Kingdom (UK) beyond the expiry of the FCA Temporary Permissions Regime.
eCommerce is booming but the impending expiration of the FCA Temporary Permissions Regime is forcing companies to make a move toward regulated their operations in the UK. Nuvei was operating its UK business from Cryprus via EU passport, but the firm has now secured the ability to provide merchants in the UK its full suite of products and solutions to process payments, with approved licenses.
Philip Fayer, Nuvei’s Chair and CEO, said: “For UK merchants seeking a locally regulated payments partner, approved licenses will be critical. As a truly global fintech provider, we continue to support local businesses as they navigate and grow in this surging eCommerce market. Looking ahead to a post-Brexit economy, we remain committed as ever to providing the most innovative payment solutions and best service available to merchants in the UK and around the world.”
Nuvei has recently announced a deal to acquire Simplex, a fintech startup providing fiat infrastructure to the cryptocurrency industry, for $250 million in an all-cash transaction.
Simplex is a fiat-cryptocurrency gateway connecting market participants including exchanges, brokers, wallet, and liquidity providers. Founded in 2014, the firm’s infrastructure enables users to buy and sell crypto with credit and debit cards, while the firm’s proprietary fraud and risk management tools ensure a zero-chargeback guarantee to customers.
Buying Simplex is also a means to acquire an electronic money institution (EMI) license to offer IBAN accounts to end users and corporations, and offer future banking and card issuing capabilities.
Simplex is a principal member of the Visa network, which grants the firm permission to issue cards. In this case, cards that provide access to digital currencies daily. In 2020, the company processed approximately $500 million in volume and is expected to process more than $2 billion in 2021, according to the statement.
Philip Fayer, Chief Executive Officer at Nuvei, said: “We expect Simplex to enhance and expand Nuvei’s steadily growing portfolio of alternative payment methods, adding turnkey simplicity 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.”
The deal is an example of how the crypto industry is starting to consolidate, merging businesses with one another to generate efficiencies, expand markets, and be able to compete in a maturing market.