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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. …

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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: Simplex.com

 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!

Source: https://coincentral.com/simplex-interview/

Blockchain

Tron, Augur, Maker Price Analysis: 16 January

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TRX moved within a fixed channel as momentum rested with neither the market’s bulls nor the bears. Augur looked to claw back to the $21.6-mark, but a boost from market leaders BTC and ETH might be required to make the ascension possible on the charts. Finally, MKR looked to break above $1,563 and targeted a move closer to its record high levels.

Tron [TRX]

Source: TRX/USD, TradingView

Tron revisited the $0.029-level after bouncing back from $0.027. However, the crypto’s price failed to break above its immediate resistance and traded between $0.029 and $0.031 over the past couple of days. The next few trading sessions could see the price trade back and forth between the aforementioned channel, since the indicators remained neutral and did not specify a breakout in either direction.

The Awesome Oscillator was bullish-neutral and showed a balance between the buying and selling pressure. A bullish outcome could see the index rise above the equilibrium-mark, while the price could look to target the $0.032-resistance level.

The Bollinger Bands were converging at press time and highlighted low volatility in the crypto’s price. This hinted at the possibility of TRX trading between its present channel moving forward.

Augur [REP]

Source: REP/USD, TradingView

Augur looked to climb back towards the $20-mark at press time as the price rose by over 3% in 24 hours. A rise above the press time resistance could confirm a bullish trend, while the price could look to target the $21.6-mark after doing so. However, a broader market rally might be required to push REP towards the aforementioned levels as the indicators were bullish-neutral on the crypto-asset moving forward.

The MACD was on the verge of a bullish crossover, but the momentum could shift either way as the bars on the histogram seesawed at the equilibrium mark.

The Chaikin Money Flow stabilized above zero and hinted that capital inflows could prevent the price from moving lower on the charts. However, it also suggested that an external impetus would be needed to boost the price beyond its upper ceiling.

Maker [MKR]

Source: MKR/USD, TradingView

After scaling to a record high of $1,999, Maker cooled down and fell below several key levels till it found support at $1,153. The price rose once again from this level, but the gains were capped at the resistance level of $1,563. However, sellers might struggle to keep the price below its current resistance as the indicators were largely bullish for MKR.

If the Stochastic RSI continues its upward trajectory into the overbought zone, the price could break above its immediate barrier and head close to record levels once again.

The Chaikin Money also confirmed the possibility of a bullish outcome as more capital was moving into the cryptocurrency.

Source: https://ambcrypto.com/tron-augur-maker-price-analysis-16-january

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Blockchain

Chainlink Price Analysis: 16 January

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

Chainlink looked to be strongly bullish on the price charts as it broke past its previous all-time high to touch $22.56. While the market-wide correction on 10 January saw LINK drop from $17 to $12.6, its recovery since has been extraordinary. In fact, a pullback to the confluence of support levels at $20 would be an ideal scenario for traders to enter or add to a long position.

Chainlink 12-hour chart

Chainlink Price Analysis: 16 January

Source: LINK/USD on TradingView

Using the double bottom formed by LINK in late December at $10.4 as the beginning of LINK’s ascent, both Fibonacci retracement levels (white), as well as Gann fan lines (yellow), were plotted. These lines gave some levels of support for LINK and projected upside targets.

A move past the ATH means that, on the longer timeframes, LINK does not have any resistance to the upside.

The surge from $14 did not yet show clear signs of an impending pullback, while the 27% extension projected an upside of $28 for LINK in the coming weeks.

In the event of a pullback, some areas of interest were highlighted where the price can expect a reaction. Further, LINK’s shorter timeframes showed a bearish divergence between the price and momentum, something that could contribute to a minor dip on LINK’s charts.

On the 12-hour chart, the RSI and the Stochastic RSI climbed into the overbought territory, but this was no evidence of an impending pullback. Rather, it pointed to the strength of bullish momentum behind LINK.

The first was the $19.8-$20 region. This region is a confluence of the previous ATH, as well as an area where the price stalled on the shorter timeframe, making it a former region of supply-turned-demand.

Beneath this line, there were the $18.89 and $17.5-levels of support, but there was no evidence yet to indicate a drop deep enough to test these levels.

The long-term outlook for LINK still remained strongly bullish at press time, and the next week or two could see LINK reach the projected $28-mark. For just the surge from $13.2 (The dip on 13 January) to $22.7, the 27% extension level gave a target of $26.

Source: https://ambcrypto.com/chainlink-price-analysis-16-january

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Ethereum competitor Near Protocol (NEAR) gains 106% as DeFi heats up

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Near Protocol (NEAR) is a smart contract platform that uses parallel processing to scale the network. This technique, known as sharding, resembles what Eth2 is aiming to achieve and Near’s proof-of-stake consensus mechanism also allows token holders to stake their coins. 

In the past month, NEAR has rallied by 107% and this raises questions on whether the project is making significant strides in what has become an ultra-competitive smart contract industry.

NEAR/USDT (Binance). Source: TradingView

Compared to its competitors, NEAR is a relatively new project as the mainnet only launched in April 2020. Unlike Ethereum, NEAR’s consensus mechanism works towards fee stabilization and according to its website, the protocol aims to accelerate the development of decentralized applications.

Interestingly, Near’s ICO took place four months after its mainnet launch. A possible reason for this is that the team raised $35 million in private funding rounds held in July 2019 and May 2020. Among its investors are Andreessen Horowitz’s a16z Crypto Investments, Pantera Capital, Electric Capital, and Ripple’s incubator Xpring.

Over the past three months, Near Protocols’ network activity has increased significantly and information on the Near Blog shows there are a couple of exciting applications already live.

Near Protocol daily number of transactions. Source: explorer.near.org

One is Berry Club, a yield arming app/game that lets players draw with pixels and earn collectible tokens. Another application called Paras also allows users to interact with a NFT digital art card marketplace.

DeFi integration accelerates

On Nov. 24, 2020, 1inch.exchange-backed project Mooniswap revealed their plan to build Automated Market Making (AAM) features on NEAR.The decentralized exchange’s aggregator is designed to roll liquidity and pricing from all significant DEXs into one platform.

Sergej Kunz, CEO and co-founder of 1inch, stated: “By building on NEAR, we’ll be able to experiment with sharding and be prepared for the arrival of Ethereum 2.0.

On Jan. 19, Crypto.com also intends to launch a new pool offering $250,000 worth of NEAR tokens at 50% below the market price. Clients will need to stake CRO tokens and also meet the set trading volume requirements on the exchange.

One area of concern is there are open questions regarding how the community treasury is governed. A substantial number of NEAR tokens are being managed by a handful of people who are not required to abide by clear guidelines and rules.

NEAR Twitter user activity vs. price (USD). Source: TheTie

Data from TheTie, an alternative social analytics platform, shows that the recent price spike was accompanied by increased social network activity. Nevertheless, transfers and transactions on the Near Protocol mainnet began only three months ago.

Compared to its competitors NEAR protocol appears to be in an early development stage. Effectively delivering the Mooniswap integration will likely be an important milestone for the project and if successful, NEAR token could possibly see further upside.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Source: https://cointelegraph.com/news/ethereum-competitor-near-protocol-near-gains-106-as-defi-heats-up

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