Second only to Kraken by volume, making it one of the largest cryptocurrency exchanges in the world, Bitstamp has partnered with Masterpayment, the exchange’s new payment service provider.
“Not only does this mean faster and more convenient transactions for our customers”, the exchange explained in a quick press release, “we have also been able to slash our fees to 5%.”
In a 22 November 2017 statement from Bitstamp, the company explained its move to a new payment provider: “Masterpayment’s services, which are available in all 4 of our cryptocurrencies and almost 90 countries around the world, will be used to process all of the credit and debit card crypto purchases made on the Bitstamp platform.”
Bitstamp Exchange Teams with Masterpayment
Bitstamp accommodates bitcoin, litecoin, ether and ripple.
The company believes transactions will be faster and cheaper, and fees will be set back to 5 percent.
Based in Luxembourg since 2016, the popular crypto exchange was an early answer to more problematic platforms such as Mt. Gox. It functions comfortably with the over two dozen EU member states as part of the Single Euro Payments Area (SEPA) scheme, and trades principally in US dollars.
“And besides the usual packages available, all our customers can now also purchase digital currencies in the amount of their choice”, the exchange continued. It also noted: “The enhanced security features offered by 3D secure technology are just another of the many benefits of partnering up with Masterpayment.”
Fees Cut by Nearly Half
Transaction fees will drop, according to Masterpayment, from Bitstamp’s usual 8 percent down to 5. As a payment service provider, Masterpayment details how it brings “the regulatory framework of a renowned bank, which provides added value, including payout options in 14 settlement currencies, as well as corporate accounts via the in-house acquiring bank.”
In summer of last year, Masterpayment was gobbled up by Net1 UEPS Technologies, Inc. with hopes to “accelerate the wider implementation of Masterpayment’s business model across carefully selected markets”, Net1 CEO Serge Belamant said at the time.
Net1 provides alternate payment systems via its proprietary Universal Electronic Payment System (UEPS). UEPS is mostly geared at unbanked populations using biometrics, and is also used in basic identification, healthcare management, voting, remittances, etc. Net1 is a large player in Africa and Asia, and with its acquisition of Masterpayment, Net1 plans on expanding more in Europe. Net1 is listed on the NASDAQ and this is the company’s first engagement with the cryptocurrency market.