Hello Markets, which builds trading platforms for financial companies, has entered into a partnership with Coinify, a Copenhagen-based bitcoin payment processor. The deal follows a separate announceme
Hello Markets, which builds trading platforms for financial companies, has entered into a partnership with Coinify, a Copenhagen-based bitcoin payment processor. The deal follows a separate announcement last week of a partnership with Polycoin, an Israeli bitcoin startup.
The Coinify arrangement serves two main goals. It enables brokers using Hello Markets' platforms to accept bitcoin as a deposit and withdrawal method for their customers. It also positions the company in Asian markets where bitcoin adoption has grown.
The largest market for bitcoin trading is Asia, with China driving the majority of the volume. Jeremy Dahan, CEO of Hello Markets, outlined the company's reasoning: "Hello Markets' addition of Coinify to our list of PSP's is expected to be met with enthusiasm across Asia and most notably China, where bitcoins have gained considerable popularity over the last few years. 80 percent of bitcoin buying & selling transactions are reportedly done against the Chinese Yuan, surpassing the U.S Dollar, Euro, and Yen. This strategy is made to provide a one-stop shop to our clients, as well as increase their customer base."
For Coinify, the agreement opens a gateway to Asian expansion. "The partnership agreement is mutually convenient," Coinify told MiningPool in an email communication. "Allowing Hello Markets to better facilitate its Chinese customer base, where bitcoins have gained considerable popularity over the last few years; while enabling Coinify to grow stronger presence in Asian markets after it has established as a market leader in Europe."
Coinify started in Copenhagen in March 2014 as a complete bitcoin payment platform. The company now partners with more than 10,000 merchants around the world. In August, Coinify bought Coinzone, another bitcoin payment startup, to expand its capabilities.
Coinify's CFO Christian Visti Larsen explained the acquisition strategy: "More merchants today do business with a PSP and would rather have multiple payment options through a PSP. Most of Coinzone's partners were asking for this service, so it seemed like a perfect match."
Coinify purchased Bitcoin Nordic and Bitcoin Internet Payment Systems (BIPS) in May 2014.
Through the Coinify integration, traders can fund their accounts in bitcoin, exchange it for major fiat currencies, and purchase bitcoin via Coinify's exchange platform. Bitcoin deposits clear faster than credit card charges or wire transfers, which take several days to process.
Brokers enjoy financial advantages from the partnership. Bitcoin transactions are final and cannot be reversed, eliminating chargebacks and fraud risk. Brokers no longer need rolling reserves, a standard cost with traditional payment processors.
Hello Markets maintains offices in Hong Kong, Cyprus, and London. The company provides white-label trading platforms to online brokers. All Hello Markets brands now support both Polycoin and Coinify for customer deposits and withdrawals.
