Voyager Digital Ltd., one of the fastest-growing crypto brokerage firms has acquired Denmark-based crypto payment app Coinify to extend its services into the digital payment sector. The growing demand for crypto payments and the success of existing companies in the space has pushed Voyager to enter the payment market and Coinify could help the $1.9 billion crypto brokerage firm to do so.
“We think payments is the next frontier,” said, Stephen Ehrlich, CEO, and Co-founder of Voyager.
Voyager aims to integrate Coinify’s payment infrastructure into their existing platform by next year, which would allow customers to make direct payments from their accounts. This would not only cut the need for a third-party payment processor but also bring down high transaction costs incurred on traditional payment platforms.
The deal would see Voyager payout existing Coinify shareholders with 5,100,000 of newly issued shares of Voyager common stock and $15 million in cash.
Coinify is an established crypto payment gateway that allows merchants to accept crypto payments and cash out in native fiats. Its services are available in Europe, Asia, North America, and South America with the option to cash out in 20 different fiat currencies.
Crypto Payment Services in High Demand
Voyager CEO Ehrlich revealed that the decision was based on the growing demand for crypto payments from customers. He also said that the demand for stablecoins especially Circle issued USDC is quite high. He explained,
“We believe the USDC stablecoin is the best stablecoin on the market and that customers want to receive payments in that,” Ehrlich says. “We see this vision of payments being the next frontier on top of trading and investing.”
Voyager’s Coinify acquisition comes at a time when mainstream payment processing giants such as PayPal, Mastercard, and Visa are expanding their crypto business amid surging demand. The demand for crypto services is it payment or analytics has seen a great surge this bull season. With several mainstream giants entering the crypto market, the competition is only going to get higher.