Vogogo Inc. ("Vogogo") (TSX VENTURE:VGO) a payment processor that services the cryptocurrency industry, today announced that it has finalized an agreement for a strategic partnership with US payment processor Knox Payments Inc. ("Knox").
The agreement provides Vogogo exclusive access to Knox's payment methods and US banking, enabling regional US fiat payments in support of the US cryptocurrency industry.
The agreement further bolsters Vogogo's US offering and allows Vogogo to expedite and enhance its upcoming entry into the US market. Vogogo can now offer its US-based merchants multiple real-time fiat payment options. Existing Vogogo merchants will be able to use a single technical integration to accept fiat payments from both Canada and the USA.
The agreement allows Knox to leverage its US banking relationships and Vogogo's merchant relationships, risk management technology and corporate resources to secure commercial level payment processing capabilities. This agreement with Vogogo enables Knox to participate in the US cryptocurrency industry, which has been a strategic target market for Knox.
Vogogo can now extend its compliance and risk management platform to the US market, leveraging its existing payments platform and processing capabilities to provide seamless and secure processing to what is estimated to be an addressable market over 10 times the size of the Canadian market currently being served.
Vogogo CEO Geoff Gordon said of the announcement, "This agreement represents a significant milestone in that Vogogo is now positioned to address the substantial US market. We will continue to execute the US expansion strategy as planned and maximize business development opportunities in the coming months."
Knox Payments President Tommy Nicholas said of the announcement, "We are very excited to be working with Vogogo and together look forward to aggressively entering a market that is already substantial yet still in its infancy."
The technical integration between Knox and Vogogo is well advanced and Vogogo expects to launch beta US processing in November 2014.