Simplex

Simplex is a fraud prevention company that aims to make buying bitcoins via credit card safe and easy. The company raised $7 million in its Series A funding round in February 2016.

Goals

Buying bitcoins with a credit card has always been a challenge for Bitcoin businesses. Like any merchant accepting credit cards, Bitcoin companies are at risk of fraud and chargebacks. While these problems are common, they are especially problematic with Bitcoin companies because Bitcoin transactions are irreversible. If a Bitcoin broker releases bitcoins to a credit card buyer, but later has the transaction reversed, there is no way to return the bitcoins.

Simplex’s goal is to make sure that credit cards can be accepted by Bitcoin companies so customers aren’t forced to resort to less user-friendly payment methods like bank transfers. Simplex partners with Bitcoin exchanges and brokers, making sure that only legitimate credit card purchases are approved. It takes on the risk for each transaction, and still pays the merchant even if a chargeback or fraud transaction occurs.

Partners

Simplex currently works with Bitcoin exchanges CoinMama, SpectroCoin, Bittylicious, and Bits of Gold. It also helps cloud mining company Genesis Mining accept payments for cloud mining contracts.

Venture Capital Rounds