Banxa

Banxa is a payment gateway for fiat to crypto transactions. As cryptocurrency has risen in popularity in recent years, so too has the demand for digital payment service providers like Banxa. This review will look at how the payment solution works, its partners like Binance and KuCoin, transaction times, fees and the security of the platform.

Brokers in United States with Banxa

•   Forex
•   Stocks
•   Crypto
•   CFD
•   Options
•   Futures
•   Binary Options
•   MetaTrader 4
•   MetaTrader 5
•   cTrader
•   Copy Trading

Binance

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How Banxa Works

Banxa is a payment method designed for crypto traders who need to convert their fiat currency into their chosen cryptocurrency. There is also an option to sell crypto. Banxa Holdings is a publicly listed company on the TSX Venture Exchange, albeit not currently on the Nasdaq stock exchange. The company’s public listing is reflective of its desire to be transparent.

History

The company was founded in 2014 by Domenic Carosa. Following rapid growth, the network is now global with support in 136 countries. Accepted countries include Germany, the United States (although not US customers in the states of Hawaii or New York), the Philippines, Nigeria and the UK. The company has its headquarters in Melbourne, Australia and also has office locations in the Netherlands (Amsterdam) and Lithuania (Vilnius).

Further information on the company itself can be found on Crunchbase or through media outlets like The Globe and Mail.

Partners

The rise of crypto has led to demand for digital currency payment solutions. Fortunately, Banxa has stepped in to offer a service alongside its partners, which include crypto exchanges. These partnerships typically use API technology to ensure traders can access crypto for fixed fees with transaction times that vary depending on the method. Chief partners include KuCoin, Phemex, AscendEX, OKEx, Edge Wallet and Bybit. And although Banxa does not have a mobile app, many of its partners do.

Note, as the firm is not a wallet provider, traders having issues with their wallet address should contact their provider for assistance.

Financial Performance

With a market valuation or market cap of C$114.17m, Banxa Holdings is a big player in the fiat-to-crypto industry and regularly features in the financial news. The current stock price is around C$2.52 but the share forecast for the next 12 months ranges from C$4.00 to C$12.04. A high price target would be around the C$13 mark.

Whether Banxa can sustain a bullish run until 2025 and beyond is unknown but its revenue growth will catch the eye of many investors. Its current earnings per share on the date of writing is $0.15. The firm’s quarterly report, which contains further financial details, can be accessed on its website. In addition, the Total Transaction Volume (TTV) is strong with the transfer solution facilitating over $1 billion in transactions.

Competitors

Traders can also choose alternative fiat-to-crypto gateways including Moonpay, Mercuryo or Simplex. The battle between Banxa and its competitors has intensified as the popularity of crypto has increased. Traders can compare customer experience between these different companies on Trustpilot.

Transaction Times

Depositing fiat money using Banxa in exchange for cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) is often quick, though it can depend on various factors. Firstly, crypto blockchains can become congested at peak times causing processing times to be slower. Some blockchains have more capacity than others though and Banxa sometimes allows traders to choose the blockchain they use for transactions.

Another factor is whether the trader has been verified under KYC (Know Your Customer) requirements. These include entering personal details, uploading a photo of your ID and taking a selfie whilst holding your ID card. Traders that haven’t yet completed this verification process will find that transaction times are longer.

Different deposit methods take varying times to process. For example, pre-approval is instant for payments made using Visa, Mastercard and Apple Pay. POLi, which is only available in Australia, takes 1 business day.

The deposit time, without delay or intervention, will usually be within 30 minutes. For sell orders, traders should allow 1-3 business days for the transaction to clear and appear in their balance.

Pricing Review

Fees

Fortunately, many deposit methods offered by Banxa are free, including Faster Payments bank transfers made in the UK and Interac in Canada. However, Visa, Mastercard and Apple Pay all incur a 1.99% surcharge. This will be disappointing for the many traders who rely on these popular order methods, although it is by no means extortionate when compared to other rates in the industry. Mercuryo, for example, has a 3.95% charge when buying crypto from your card. A wire transfer, which can also be used, often incurs its own fees and can be relatively expensive.

Crypto exchanges may impose their own fees too. Binance does not have deposit fees, however, they do charge a flat fee depending on the type of crypto the trader withdraws. There is a flat fee of 0.0005 BTC to withdraw Bitcoin, for example. There are also minimum withdrawal amounts on Binance.

Payment Limits Review

The majority of payment methods on Banxa have a daily limit of $15,000 and a monthly limit of $60,000. For those swing trading as a hobby, these limits should not cause major issues. Note that some payment methods have their own limits – for example, traders in Canada who use Interac will find a $3,000 limit.

Sell orders have a $50 daily minimum and a $30,000 daily limit per customer.

Security

As Banxa is listed on a stock exchange, it is automatically regulated to some degree. And while much of the crypto world is murky, the brand has made an effort to be transparent, safe and internationally compliant. 2-factor authentication is also used to confirm transactions. This will typically involve the transaction being confirmed via the trader’s email account or through SMS.

In addition, the company’s advanced fraud detection makes it more difficult for hackers to infiltrate the payment system and steal funds. Therefore, despite crypto being infamous for hacks and fraud, Banxa is generally a reliable and trustworthy company with a series of fraud mitigations in place. This is important given a refund or reversal is generally not possible once the crypto has been sent.

Note, traders can request that personal information linked to their account is deleted if it is no longer needed.

Pros of Banxa for Traders

Benefits of trading with Banxa include:

• Customer support – traders can expect fast responses to their queries through the ticket request system. The customer service team can help if your account has been mistakenly put on hold, for example. You can also find out how to track and cancel orders.
• Range of payment and order methods – from credit and debit cards to bank transfers, Banxa offers a range of payment options to deposit fiat money for traders across the globe.
• Excellent choice of crypto – traders can purchase the biggest crypto coins like Bitcoin (BTC), Ethereum (ETH) and Tether (USDT). Users can also experiment with more obscure tokens such as yearn.finance.

Cons of Banxa for Traders

Downsides to trading with Banxa include:

• No Coinbase partnership – Banxa has not yet partnered with Coinbase, which is one of the biggest crypto exchanges used by many online traders.
• Verification times – unfortunately, standard verification can take up to 12 hours after placing an order. This is why the level to which your account is verified can have a big impact on transaction times.
• Fees imposed for credit/debit cards and Apple Pay – many traders will rely on credit/debit cards and Apple Pay to deposit fiat money on Banxa, but unfortunately, this comes with a 1.99% surcharge. Other crypto gateways do not impose fees subject to the trader purchasing a minimum amount of crypto.

How to Make Banxa Deposits & Withdrawals

The steps below may need to be completed with Banxa or undertaken directly on the relevant partner’s website:

1. First login or register with your chosen crypto exchange that has partnered with Banxa
2. Traders will need to decide how much fiat currency they wish to deposit and how much crypto they would like. This will often depend on the strategy being implemented, for example, swing trading techniques
3. Choose a preferred payment method such as Apple Pay, Faster Payments (UK Bank Transfer) etc.
4. Note, traders will need to complete the KYC verification process if this is their first transaction
5. Unless the payment is rejected, traders will receive their crypto in line with the time limits outlined in this review

Customer Support

Traders can submit ticket requests (order number, email and phone number are required) and contact should be made within 48 hours. We tested the service and received a response within 24 hours. Whether your payment has been declined, you have complaints to make, the live system is down or not working, you receive error code 227 or 5030, or you need any other type of help or support, get in touch with the Banxa team. Advisors may also be able to give information on your order status and help track it. On the downside, there does not appear to be a live chat feature, though there is a message board.

There are also comprehensive FAQ pages on the Banxa website dealing with questions such as whether an order can be cancelled. In addition, the company has accounts on Twitter, Facebook, LinkedIn and YouTube and separate information is available to investors, including a webinar that the firm holds periodically.

Verdict

This review of Banxa should give reassurance that the crypto payment provider is generally reliable, safe and trustworthy. It is also supported in many countries and provides a quick and easy way to buy crypto like Bitcoin (BTC) and Ripple (XRP) through exchanges such as Binance.

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