TechX Technologies Inc (CSE:TECX) (OTCMKTS:TECXF) (FRA:C0B1) has signed a definitive share purchase agreement to acquire a 100% interest in fintech start-up Mobilum OÜ for C$16 million, the company announced.
Mobilum is a licensed plug-and-play fiat-to-crypto gateway and payment processing technology solution for exchanges, wallets, brokers, liquidity providers and cryptocurrency businesses. Its on-ramp and off-ramp solution enables integration for businesses with users who buy and sell cryptocurrencies with credit and debit cards.
"TechX is very excited about acquiring Mobilum's innovative technology, which is creating a bridge between the fiat and crypto space to speed up the mass adoption of cryptocurrency worldwide," TechX CEO Peter Green said in a statement. "The rise in decentralized finance applications is growing rapidly and we expect to soon be a key player in this ever-growing market."
Mobilum also guarantees zero chargebacks, the highest acceptance rates, and the lowest transaction fees in the industry, at 2.99%, the company said. Its daily processing volume ranges from C$100,000 to C$250,000 in transactions for cryptocurrency exchanges that include KuCoin, the sixth-largest cryptocurrency exchange in the world. Because it supports more than 200 cryptocurrencies and more than 80 fiat currencies, Mobilum's payment gateway services are accessible to over 8 million global users.
"With very few exchanges offering credit card processing, we've seen an exponential increase in demand from exchanges and cryptocurrency businesses to utilize our on-ramp solution," Mobilum CEO Wojtek Kaszycki said. "The recent crypto correction has actually increased our processing volume because investors want to get in on the price dips. By merging with TechX, Mobilum will be able to increase its liquidity, giving us the ability to process millions of dollars in transactions per month."
In addition to the payment processing technology, TechX will gain access to Mobilum's Xcard digital wallet technology platform, the company said, which is expected to launch in the third quarter. The technology will allow users to buy and sell more than 237 cryptocurrencies and earn interest of up to 16% APY by staking them, among other features.
"We're excited to be launching a superior interest-bearing cryptocurrency wallet with the marketing power of TechX behind us," Kaszycki added. "With the growth and complexity of DeFi (decentralized finance) yield farming, our wallet will make it simple for any beginner to get into DeFi. I feel that our digital wallet could become a superior premium offering dominated by companies like Voyager Digital (CSE:VYGR) (OTC:VYGVF) (FRA:UCD2) and the Celsius Network.”
“The user bases and the assets under management within interest-bearing cryptocurrency wallets have exponentially grown over the past year into the multi-billions of dollars. People around the globe are just not satisfied with banks paying out interest under 0.50% anymore. Unbanking is going to become the new norm."
Kaszycki will remain the CEO of Mobilum, the company said. Between 1996 and 2001, Kaszycki managed the first e-commerce agency in Poland, AGS NewMedia and created the first e-commerce portal in Poland Empik.com (Polish Amazon). He is also the founder and chairman of BTC Studios, a publicly-traded video gaming company on the Warsaw stock exchange.
Under the terms of the deal, the shareholders of Mobilum will receive more than 26.6 million common shares at a deemed value of $0.60 per share.
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