Coinify, a Denmark based Bitcoin payment processor has entered into a Payment Service Partnership agreement with PensoPay to provide secure, fraud-free payment settlements in fiat currency to its customers. With this partnership, Coinify has efficiently extended its distribution channel.
The agreement, effective as of March 15, 2015 allows PensoPay to advertise and sell Coinify’s solution along with their product. By including Coinify’s Merchant Solution along with its POS and online payment gateway solutions, PensoPay can now offer its customer a seamless way to receive settlements in fiat currency within a day.
According to the agreement, PensoPay will be working with Coinify as an independent contractor and it will be in charge of handling technical support as an after-sales service. Similarly, Coinify will leverage upon PensoPay’s existing network to strengthen its presence in both online and offline (physical) retail market domains. PensoPay has already established itself as a merchant payment solutions provider in the digital currency domain, while Coinify is known for their short turnaround time to settle digital currency payments in fiat currency. Together, they will be able to provide a reliable end-to-end solution to its customers. It will also help in increasing Bitcoin adoption among merchants, as there will be a significant reduction in the risk associated with accepting cryptocurrencies as a mode of payment.
The PSP partnership between Coinify and PensoPay is similar to the kind of agreements entered by card companies like Visa and MasterCard. While the likes of MasterCard and Visa use SWIFT or a similar banking network for payment processing and fund transfer, these companies use blockchain technology for the same.
This partnership comes at the right time when Bitcoin is increasingly being seen as an everyday currency than an investment commodity. People have started to loosen up their Bitcoin wallet strings, making this the right time to give them options to pay with Bitcoin for their everyday purchases. This can only be done by convincing and enabling more merchants to accept Bitcoins.