Coinify is gradually increasing its foothold in the European bitcoin market. The Danish company has further consolidated its position by acquiring one of the well-known bitcoin payments processor in the region.
By acquiring the Dutch company Coinzone, Coinify will be increasing the total number of merchants by 2000 to stand at around 10,000 merchants. Coinify has lately been focusing on rapidly increasing its market share in bitcoin payments domain. In order to do that, it has adopted the mergers and acquisitions route instead of onboarding new merchants individually onto the network. By acquiring its competitors, Coinify is effectively eliminating competition and absorbing their existing customers into Coinify platform.
Once Coinify platform has acquired enough companies in the region to grow in size, it can then consider onboarding individual customers who are still not using bitcoin payment option. The strategy followed by Coinify in Europe is quite similar to that of American companies, who have been doing that for a while now.
Coinify plans to let go of most of the Coinzone employees once its operations are wound up. Coinzone will continue to operate its payment service and website for a while until the merchants are migrated to Coinify. Merchants are already being encouraged by Coinify to switch their service provider from Coinzone to Coinify before the end of this month as it intends to suspend all Coinzone services on 31st of this month.
There has been lot of developments happening in the bitcoin sector lately, the number of companies shutting shop or relocating their base of operations have increased drastically this year. According to the CEO of newly acquired Coinzone. Manuel Heilmann, the decision to sell the company was made with European best intersts in mind and with this acquisition, Coinify’s presence will be strengthened in Europe.