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Crypto-Focused Fintech Company Simplex is Using AI to Tackle Fraud



Launched in 2014, Simplex is an EU-based fintech company that is looking to enable merchants, marketplaces, and cryptocurrency platforms to process online payments with complete chargeback coverage and fraud protection. 

We connected with Netanel Kabala, Co-Founder & CAO of Simplex. Netanel is a specialist in all aspects of fraud, and before Simplex, Netanel worked at PayPal as a fraud analyst, dealing with user-facing risk platforms and back-end automation. 

What are the most significant pain points to tackle in the credit card space?

On a macro scale, fraud and red tape are the biggest issues. 

At Simplex, fraud isn’t a problem – our proprietary AI analyzes every transaction using fully automated machine-learning algorithms that effectively eliminate fraud. 

Red tape, due to regulatory inefficiency and legal inconsistency, remains a challenge for the industry however. A lot of this is down to operating a digital business in a world whose legal systems are still predicated upon physical borders, and it affects all global businesses, not just payment processors. 

Nevertheless, the costs of ensuring compliance across multiple jurisdictions and territories are significant, and are an impediment to launching new products.

How does Simplex differ from the traditional credit card industry?

Firstly, we’re crypto-focused, whereas most credit card companies want nothing to do with cryptocurrency. 

Secondly – and this explains why we can deal with crypto and our competitors can’t – our fraud-proof technology protects merchants from the risk of chargebacks. 

We’ve also taken great pains to ensure that our compliance is impeccable, and this enables us to show that the crypto industry can be supported in a responsible manner, while satisfying regulators and maintaining the highest due diligence standards.

How does the business make money?

Our revenue is driven by Simplex partners accessing our fraud-proof payment gateway, and by the conversion fees for retail users switching between fiat and crypto using our account service.

Who is the ideal Simplex customer?

Our customer base is very diverse; on the consumer side, we’ve got retail investors seeking a safe way to buy cryptocurrency, while on the enterprise side we support everything from SMEs to the largest cryptocurrency exchanges in the world that integrate our payment gateway.

Businesses seeking a safe way to accept card payments – without introducing risk – and their customers are the primary beneficiaries of Simplex.

Buying cryptocurrency with a credit card often comes with ludicrous rates. How is Simplex’s solution different?

For Simplex to be adopted by major global exchanges, we recognized that we would have to offer competitive rates; competing on security and reputation alone would not be enough. 

Keeping fees to a minimum is also how we grow our market share, while making the crypto market more appealing to investors, who can swap in and out of fiat currency without being penalized.

Can you touch on how Simplex use sAI to eliminate fraud while increasing conversion? What’s the actual process behind the scenes?

The AI analyzes each transaction and determines the likelihood of it being fraudulent, based on thousands of data points. 

The machine learning algorithm becomes more effective over time, enabling potentially fraudulent transactions to be screened out. This increases conversions while preventing chargebacks, allowing businesses to facilitate fiat-crypto payments with zero risks.

Simplex has a fairly extensive list of partnerships throughout the cryptocurrency space, with companies such as Binance, Bitpay, Huobi, and various others. For the entrepreneurs in our audience, what’s the best way to go about establishing relevant partnerships with similar companies

It’s really a two-step process, one internal and the other external. Before you can think about approaching potential partners, you have to ensure your product is fully optimized, and that the solution you’re presenting is better than the incumbents.

A list of Simplex's partners

A list of Simplex’s partners. Source:

 There’s no point in approaching major enterprises while you’re still fixing bugs and refining the UX. With Simplex, we focused on developing a payment gateway that we believed to be the best in class. Only then did we seek to engage in dialogue with companies that could benefit from our solution.

The Israeli startup community seems to have embraced cryptocurrency and blockchain. Can you touch on what it’s like launching and running an international payments company in Israel?

Israel’s reputation for tech excellence doesn’t need restating. We’re a small country, and in Tel Aviv where much of the startup scene is based, everyone knows everyone. This is great for sourcing talent and establishing partnerships as if you can’t solve a particular problem, there’s a good chance that you know someone in your network who can. 

At the same time, the insular nature of Israel’s tech community means it’s imperative to tread carefully and work to build bridges, rather than aggressively trying to corner the market at the expense of everyone else. When startups collaborate, they can achieve a greater outcome than could have been attained from working unilaterally.

What’s next for Simplex? What can we expect to see in the next 2-3 years? 

We’ve just launched Simplex Account, an online banking account that allows consumers to use their digital assets how and when they want, online and offline. Essentially, it allows them to create a single account and then access it across an array of Simplex partner platforms including exchanges and wallets.

Moving beyond this, we have been working hard on expanding our turnkey crypto payment solution, with new products in the pipeline. Finally, we’re looking to extend the list of countries where we’re licensed to operate, and are working closely with regulators in several jurisdictions to bring this about.

Thank you, Netanel!

The post Crypto-Focused Fintech Company Simplex is Using AI to Tackle Fraud appeared first on CoinCentral.



Not Wasting Time: PayPal Reportedly Considering to Buy Crypto Companies, Including BitGo



  • PayPal, the world’s largest online payment processor, is reportedly exploring acquisitions of cryptocurrency-oriented companies.
  • Citing sources familiar with the matter, Bloomberg reports that this includes the popular Bitcoin custodian BitGo.
  • The sources also revealed that PayPal has been in talks with BitGo, and it could potentially reach a deal “within weeks.”
  • However, the negotiations could still “fall apart,” and, in this case, PayPal could choose to buy other companies.
  • At the time of this writing, PayPal and BitGo haven’t provided official statements on the matter, and it’s not clear how much would the payment processing giant pay for the acquisition of BitGo, should the deal move forward.
  • This comes a day after PayPal announced that it would enable its customers to buy, sell, and hold Bitcoin and other cryptocurrencies on its platform.
  • As CryptoPotato reported, the company is “working with central banks and thinking of all forms of digital currencies.”
  • It’s worth noting that PayPal will initially allow US-based customers to opt in to buy and sell crypto within the “coming weeks.” Accounts registered in other countries should be able to do so in the first quarter of 2021.

Featured image courtesy of PYMNTS


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Institutional ‘Takeover’ of Crypto Continues as CME OI Surges



Open Interest on one of the world’s largest exchanges continues to increase as proof.

According to data from Skew analytics, Open Interest on the Chicago Mercantile Exchange (CME) has surpassed that of retail exchange Binance and taken the second spot.

The move was noted by long-term Bitcoin trader Nick Cote who likened it to an ‘institutional takeover’.

Open Interest is a measure of the total number of outstanding derivative contracts, such as options or futures that have not been settled for the asset, in this case, Bitcoin.

Previously, exchanges such as BitMEX dominated for derivatives but since the legal proceedings against its executives, there has been somewhat of an exodus from the embattled exchange.

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OKEx OI is approaching a billion dollars which has been a historical rejection point, while CME is not far behind now with almost $800k. Aggregated OI across all the major exchanges has hit a monthly high of $5 billion according to the analytics provider. Bakkt comparably has very little OI with just $15 million.

Binance still leads the way for 24-hour futures volumes however with $4.75 billion according to Skew. Huobi and OKEx are second and third at $3.5 and $2.9 billion respectively.

The Institutions Cometh

Grayscale assets under management (AUM) continues to surge with the latest figure at $7.3 billion according to the institutional crypto trust provider.

The largest trust offering exposure to Bitcoin markets is now worth $6 billion which is more than the total AUM just two weeks ago.

As reported by CryptoPotato, Grayscale marked Q3 as its best quarter yet with over $720 million of Bitcoin inflows.

The big players in finance are certainly paying attention now, billionaire hedge fund manager Paul Tudor Jones III recently stated he liked Bitcoin even more now than when he first added it to portfolios in May. Meanwhile, veteran trader Peter Brandt attributed this rally to the increasing involvement of institutions.

Crypto Market Outlook

At the time of writing Bitcoin was still dominating crypto market momentum. Total capitalization was near its highest level this year, close to $390 billion according to It has increased by over 110% since the beginning of the year.

For the past two years, the fourth quarter has been bearish but 2020 seems to be following the 2017 pattern, ending the year on a bull run.


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Market Watch: Ethereum Finally Reclaims $400 As BTC Struggles With $13K



Bitcoin spiked above $13,000 once again and came close to painting yet another 2020 high. Ethereum jumped above $410, and most altcoins have followed alone with notable increases. The market cap has gained $8 billion more.

Bitcoin Swings At Another YTD High

CryptoPotato reported yesterday that the primary cryptocurrency surged to a fresh 2020 high of just about $13,220. The impressive price increase came after the giant online payment processor PayPal announced it will start supporting the purchase, selling, and storing of digital assets.

Bitcoin retraced in the following hours to about $12,700. However, the bulls regained control since then and drove BTC above $13,000 again.

The cryptocurrency didn’t stop at that coveted level. Bitcoin came just a few dollars away from breaking its own 2020 record but, according to data from Bistamp, it peaked at $13,205.

A new retracement followed, and BTC currently hovers above $12,900.

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The technical indicators suggest that the most significant resistance in Bitcoin’s way is at $13,350. The next one is at $13,900, before having a chance to break the 2019 record as well at $14,000.

Alternatively, if BTC seizes its bull run, the support levels it could rely on are at $12,300, $11,950, and $11,400.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Ethereum At $415, Market Cap Adds Another $8B

Although the altcoins had a sluggish start initially when Bitcoin was rising during the weekend, they have caught up. In the past 24 hours alone, Ethereum has jumped by over 5% to above $410. Just three days ago, ETH was struggling below $370.

Bitcoin Cash (2.5%), Polkadot (1.4%), and Cardano (1.3%) are also in the green from the top ten. However, Chainlink has outperformed them all with a 5.5% surge. As such, LINK has neared $12.

Cryptocurrency Market Overview. Source: quantifycrypto
Cryptocurrency Market Overview. Source: quantifycrypto

Further gains are evident from mid and lower-cap altcoins. Aave leads the way with a 21% jump. Energy Web Token (12%), Celcius (10.5%), Synthetix Network Token (10%), and Ampleforth (10%) follow.

The cumulative market capitalization of all digital assets has increased by $8 billion since yesterday to $394 billion. On a weekly scale, it has surged by 11.5% from $353 billion on October 16th.

Cryptocurrency Market Cap. Source: CoinMarketCap
Cryptocurrency Market Cap. Source: CoinMarketCap

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


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