The Bitcoin payment processing service provider Bitpay has received according to Reports from Recode, a $ 40 million funding from Venture Capital (VC) companies. The capital of the renowned companies in Menlo Ventures’s licensors.
As yesterday it became known, Bitpay will receive a second round of financing of over 40 million US dollars. In the year of the founding of Bitpay had already collected in a first round of 30 million USD. Among the new investors, including Menlo Ventures, G Squared, and the Asian financial technology company Capital Nine.
Probably the best known Name is Menlo Ventures, which made investments in Uber and Roku in Silicon Valley, a name, and was very successful. For Menlo Bitpay is the first investment in a crypto-company.
As Tyler Sosin from Menlo Ventures, explained to the Portal business insider, BitPay have been, in particular, due to the significant growth in the last few years and, thanks to its well-known partnerships, including with Microsoft and Neteller interesting. Menlo is from the future success of BitPay convinced:
We felt the company had identified a killer use for crypto.
To Recode Sosin said:
It’s early, early days. We imagine there will be some very big companies.
According to Sosin Menlo Ventures, crypto looks currencies, not only as an asset, but also as a future means of payment. In particular, in countries with a population which has a large number of people without a Bank account, and in countries with a strong Inflation, it can be Bitcoin is a more stable form of payment and people’s access to the money market. This is also why Bitpay thinks according to the information of Recode is about to expand in the direction of Asia.
The business model of BitPay
BitPay provides its Software to retailers and E-Commerce operators to accept payments from customers in Bitcoin. The settlement of the payment is made directly and immediately to the Bank account of the business in Fiat money.
Thus, the traders should not be exposed to the volatility of the crypto currency. For the Service BitPay asks for a processing fee in the amount of one percent. A few days ago, BitPay, has announced plans to enable Bitcoin Cash payments. In addition, in the near future, more Altcoins, if the conditions are right.
According to Bitpay, the biggest Bitcoin payment processing service providers in the world. In the past year, 2017, in 2014, the company has processed Bitcoin in the value of one billion US dollars in the framework of E-Commerce payments. The biggest competitor of BitPay Coinbase, the cryptocurrency exchange also has it’s own payment processing service for businesses.
From our point of view, BitPay can be a driving force, in order to make payments with crypto-currencies for stationary and Online retailers and their customers and, therefore, will be decisive for the adaptation of digital currencies.
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