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NetCents Technology ups credit facility from US$1.4B to US$2B to prepare for rapid growth in cryptocurrency space

It made the move to facilitate continued merchant growth, a credit card launch, and white label projects

crypto
According to Bain Capital, the growth of technology companies that focus on B2B payments will continue through 2021

NetCents Technology Inc (CSE:NC) (OTCQB:NTTCF) (FRA:26N), a cryptocurrency payments company, announced Friday that it has increased its credit facility from US$1.4 billion to US$2 billion. 

The company said it has made the move to facilitate continued merchant growth, a credit card launch, and white label projects. 

NetCents said it is preparing for rapid growth in the cryptocurrency space specifically B2B payments as its transaction volume is rising and user adoption is growing rapidly. 

READ: NetCents Technology updates on rollout plans for its Cryptocurrency Visa Credit Card

"We think we are at that inflection point. Bitcoin is coming out of the shadows and moving again into the spotlight, unfortunately, many missed the 300% run from the bottom," said CEO Clayton Moore in a statement. 

"Our education process continues to win over clients. Clients are becoming exceedingly more comfortable with our products as we demonstrate security protocols and how the Bitcoin and other coins that potential clients receive are actually screened and vetted before we allow them on the platform, we increased the credit line because we need to increase our capabilities to meet growing demand.”

According to Matt Harris of Bain Capital, the growth of technology companies that focus on B2B payments will continue through 2021. He alluded to the fact that while B2C was much more mature, there was a lot of room for B2B providers to grab market share.

NetCents said it has partnered with a handful of forward-thinking institutions to use its merchant order flow as a supply for a short-term crypto portfolio. The credit line enables NetCents to have money in the market over an extended period and be able to profit from arbitrage opportunities. The profits from this arbitrage will ultimately allow NetCents to reduce fees to its client base.

The credit line also allows NetCents the capacity to eliminate volatility risk for all of its merchants. Furthermore, this financing structure will help many cryptocurrency exchanges by creating a deeper market for mainstream cryptocurrencies.

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

Quick facts: NetCents

Price: 0.93 CAD

CSE:NC
Market: CSE
Market Cap: $75.3 m
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