And we’re back to you with yet another issue of our revenue report. A little siesta time for Bitcoin, June was the month when a single event affected both crypto and traditional finances communities at one stroke. Meanwhile, we were breaking our own records for the second month running, and you only need to look at the numbers to see what we’re talking about:
Total June 2020 revenue: € 523,428
June 2020 Revenue share: € 52,343
June 2020 Revenue share in ETH: 247.3084 ETH
Distribution date: July 10th, 2020
Share per 100 CPAY: € 0.058
In June 2020, Bitcoin traded in a rather unenthusiastic range of $9,000–10,000. Though not particularly bullish, it is by no means a bear situation yet and might well still change to the best if the coin holds support level at $8,900–9,000.
The cause of one of the few minor surges might have been the rumours of PayPal entering the digital currency space. As the company now boasts 325 million users, the move, if made, will introduce a whole new audience to the crypto world. Is this how Bitcoin finally goes mainstream, with traditional payments companies seeing client interest in crypto services and seeking to satisfy it? Time will tell.
One of the most controversial events of the summer happened on 25 June when German payment processor and financial services provider Wirecard AG filed for insolvency after it was revealed $2.1 bln was missing from its accounts. In a rare twist, the top story of the Financial Times had enormous repercussions for the crypto community: on 26 June the Financial Conduct Authority (FCA) has ordered Wirecard Card Solutions (a subsidiary of Wirecard AG) “to cease all regulated activities in order to further protect customer money”. The impact was suffered by people who were temporarily unable to access cash held with financial apps using Wirecard technology.
We were more fortunate than others, and through the genuinely stellar work of our team, agility and crazy-preparedness (one of the many skills you get on the job) managed to unload funds of our clients back to their accounts before they were frozen. We’re grateful to our partners for complying with the FCA’s requirements in such a prompt, professional manner which helped to resume the programme in the shortest possible time. The cards are now running smoothly and, perhaps, even smoother than before — thanks to that unplanned respite.
We also appreciate the support and patience of our users — we promise that we’ll be working for you to make the programme even better and to launch in the rest of the EEA soon.
Another month and another chance for our B2B team to outdo itself — since May the revenue grew by another 25%. The B2C is more conservative, and we’ve been seeing similar performance levels for a few months in a row. We’ve been anticipating a growth spurt prompted by the card launch in the UK. Unfortunately, the Wirecard situation has somewhat upset our plans, and we additionally had to postpone the EEA launch. As for the performance of the new card programme in the UK, it’s a slow but sure start — even after the Wirecard incident, we managed to outperform our rather downbeat forecast but we’re still falling short of our full potential partly due to the lack of marketing actions. We’re already working to correct this oversight and are positive that before the summer ends, everyone who can put the C.Pay card to good use in the UK and the rest of the EEA will know its worth.
Overall, we’re quite pleased to see how the company recovers from the coronavirus slump: we’ve already surpassed the pre-outbreak levels but won’t be relaxing our efforts. There’s still a lot of work to be done to make Cryptopay even greater.