Two of Canada’s largest publicly-traded FinTech companies, Montréal-based Nuvei and Vancouver’s Mogo, have recently introduced new cryptocurrency-based solutions.
Nuvei has added pay-in and payout support for 40 of the world’s most popular cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, NEO, and Ripple, while Mogo has launched a Bitcoin cashback mortgage offering.
Nuvei and Mogo are two of the latest Canadian FinTechs to expand their presence in the cryptocurrency space.
Nuvei and Mogo are two of the latest Canadian FinTechs to expand their presence in the cryptocurrency space. The moves come as mainstream adoption of cryptocurrencies has increased, the price of Bitcoin has soared, and the growing popularity of non-fungible tokens (NFTs) has created a market for a new type of blockchain-based digital asset.
By enabling crypto payments, Nuvei aims to allow ecommerce merchants to “join the cryptocurrency revolution” and access more customers around the world, including in “hard to reach countries.” With the addition of cryptocurrencies to its platform, Nuvei can now also facilitate transactions for NFTs.
“As the number of cryptocurrency holders continues to expand, merchants stand to grow their overall market share by accepting it as another alternative payment method,” said Nuvei, which is currently active in over 200 markets worldwide.
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The company claims this move will give Nuvei merchants “greater reach to customers” and increased agility, adding that by accepting cryptocurrencies as payment, retailers will benefit from the enhanced security, privacy, and integrity of blockchain transactions.
“With consumer shopping habits trending increasingly more global – thanks to the ease of purchasing from any site in any country – supporting cryptocurrencies represents a sizable market opportunity for merchants to attract more buyers worldwide,” Nuvei added.
This month, Nuvei joined the American and Canadian Gaming Associations, as the company looks to accelerate its growth as a payments provider for the gaming industry in the United States, and support the evolution of Canada’s regulated gambling sector. The company was also recently granted regulatory approval to process sports betting payments in Virginia and Tennessee.
Earlier this month, Nuvei released its fourth-quarter 2020 financial results, reporting the strongest growth in the company’s history. In Q4, Nuvei generated $115.9 million in revenue, a 46 percent increase compared to 2019, in the company’s second quarterly earnings report since going public on the Toronto Stock Exchange last fall.
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On the other side of the country, Mogo has extended its Bitcoin cashback rewards program, which currently applies to the Mogo Visa Platinum Prepaid Card and the company’s digital spending account, to include MogoMortgage, the company’s mortgage offering. Through the program, Mogo members who take out a new mortgage or refinance with Mogo can earn crypto cashback rewards.
“As an independent mortgage brokerage, our goal has always been to help members get the best rate and the right mortgage, and now our new Bitcoin rewards program will reward them with up to $3,100 in bitcoin,” said David Feller, Mogo’s founder and CEO.
Bitcoin rewards differ from other cashback rewards programs because Bitcoin is an asset class that has the potential to rise in value over time, Feller added.
Mogo also offers MogoCrypto, a platform that allows users to trade Bitcoin for a one percent fee per transaction. Mogo plans to introduce free cryptocurrency trading in the future.
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In February, Mogo declared it had reached an agreement to buy a 20 percent stake in cryptocurrency startup Coinsquare for $56.4 million. Coinsquare acts as the trading platform for MogoCrypto, which Mogo first launched in 2018. Mogo claims it is the only FINTRAC regulated and publicly traded company on the TSX and NASDAQ that offers Canadians a “simple and low-cost way to buy and sell Bitcoin.”
Earlier this month, Mogo announced plans to acquire Montreal FinTech startup Moka in a $64 million all-stock deal, as it looks to increase its user base and accelerate the planned launch of the company’s free stock trading solution later this year. The transaction is expected to close during the second quarter of 2021.
Photo by André François McKenzie via Unsplash