HomeMake MoneyWhat Is Shakepay? - How Does Shakepay Make Money?

What Is Shakepay? – How Does Shakepay Make Money?

What Is Shakepay?

Blockchain-based payment platform Shakepay allows users to buy and trade cryptocurrencies like Bitcoin and Ethereum.

The only currencies that may be exchanged on the brokerage are Bitcoin and Ethereum. Shakepay is unique in that it doesn’t charge a fee for these transactions.

Every time a user shakes their phone for a chance to win a little amount of Bitcoin, the platform is named after them. The more Bitcoin a user accumulates, the more money he or she will be able to spend.

In addition to trading cryptocurrencies, users may use Shakepay’s debit card to pay for real-world products and services using the Canadian dollars in their accounts.

Customers will also get a 2% cashback bonus on all purchases made with the card.

Shakepay has partnered with Peoples Trust Company to assure the safety of the digital assets maintained by the latter. Shakepay Theft and loss of private keys are covered under its policy.

Customers may also send money to pals or transfer funds to organizations like TD, Scotiabank, RBC, and more.

Shakepay is only accessible in Canada at this point in time. Visit the website or use the mobile app to get started with the service (available on Android and iOS).

What Is Shakepay

The history of Shakepay

Jean Amiouny and Roy Breidi created Shakepay in 2015, with its headquarters in Montréal, Canada.

The two founders met at McGill University, where they both graduated in 2013 with a bachelor’s degree in economics. Breidi majored in Computer Engineering while Amiouny studied Civil Engineering.

Amiouny was exposed to Bitcoin for the first time at the same moment. However, it would be a few years before he was fully integrated into the community.

Breidi went on to work for Morgan Stanley after graduating, whilst Amiouny started his own firm in 2014 after consultancy work.

It was White Payments, a Dubai-based startup that made it possible for anybody to take payments online. Payments to Payfort for an unknown amount in less than a year.

To return to Montreal, Amiouny contacted Breidi, who was working for Morgan Stanley at the time after leaving the company.

After several drinks, the two would debate how to fulfill Bitcoin’s promise by enabling anybody to use the currency as a payment mechanism. This is how Shakepay was first introduced.

They joined the startup accelerator NEXT Canada at the beginning of 2016 to help launch their company. After months of development, the beta version of Shake was released in March 2016.

When Shake was launched, it was intended to be a payment app for mobile phone users. Customers might use the NFC technology on their phones to pay with Bitcoin at any retailer accepting VISA.

Shake ultimately opened its closed beta in September after six months of testing and let anybody to participate. Chrome extension for browser-based payments was released two months later.

An unfortunate fate befell the company. In August 2017, Shakepay ceased providing debit cards to consumers outside of Europe for the first time since its inception (where most of its customers were based anyways). Previously, VISA was unable to accept payments since it had dropped its card issuer, Wavecrest.

The team finally opted to shift its focus to a new business line because of their entrepreneurial spirit. They opted to seek CA$1 million in capital from Boost VC, Amphora Capital, and a few angel investors to support this strategy pivot.

They were a part of Rotman School of Management’s Creative Destruction Lab, the sixth cohort, prior to receiving financing. Their ability to engage with venture capitalists, who were prepared to fund the pivot, was ultimately a result of this.

The new product was announced in February 2018 after Bitcoin’s price had risen from $1,000 to over $20,000 at that time. They shifted from being a payment service to a peer-to-peer mobile wallet that supports several currencies. With a few taps, users may buy and trade Bitcoin on their mobile devices.

What Is Shakepay

The firm started an OTC trading desk in October to serve high net worth individuals and corporations in Canada.. With a CA$50,000 deposit, anybody may hold Bitcoin safely with the firm.

The new Shakepay was able to service more than 40,000 clients and process more than $30 million in Bitcoin transactions before the end of the year. The team’s attention to detail was a major factor in its success.

On Reddit, for example, its creators would respond to queries and participate in discussion about bitcoin. Shakepay has developed a dedicated Discord server for its users to participate in and get assistance from. Shakepay’s Discord server.

Shakepay completed the year by adding Ethereum as a second cryptocurrency option. For example, the team included two-factor authentication and peer-to-peer payments, as well as an insurance policy to strengthen the product’s safety net in the next months and years.

A milestone of 100,000 registered users will be achieved by the summer of 2020. After the coronavirus outbreak led to an exponential rise in crypto acceptance, the company’s growth was boosted further.

Shakepay increased from 100,000 to over 600,000 users in nine months by the end of May 2021. In addition, the total number of transactions on the platform has crossed the $3 billion mark.

In November, Shakepay teamed up with Coinbase to handle the influx of new customers. Coinbase Custody would then be the recipient of the Shakepay purchases and store them in cold storage.

After a month, the business went back to its origins. Users may now pay for goods and services using their fiat account balances once again thanks to the introduction of Shakepay’s Visa Prepaid Card.

Shakepay’s user base increased by about 400% in the year 2021. Another round of investment was awarded to the company for its rapid expansion. Shakepay secured CA$44 million in January 2022 from a variety of investors, including QED Investors and BoxOne Ventures, among others.

Shakepay now has more than 900,000 clients who keep their cryptocurrency there. In addition, there are about 100 individuals employed by the firm.

How Does Shakepay Make Money?

Interchange fees and the spread on bitcoin exchanges are two ways that Shakepay generates money.

Shakepay’s business concept is built on offering clients with an easy and safe option to buy and trade bitcoins.

With so many currencies and trading items available, as well as a lag in regulatory clearance, many current exchanges have frightened clients away from trusting them with their money.

There may be fewer alternatives on Shakepay than on Binance or Coinbase, but the process of purchasing cryptocurrency on Shakepay is almost error-free.

Customers may buy their first Bitcoin in less than ten minutes now because to the ease of online purchasing. Additionally, Shakepay is licensed as a Money Service Business by FINTRAC and Revenu Québec to keep Bitcoins offline.

Additionally, Venmo and other businesses that enable users to transfer money to each other have grown rapidly because of this method of gaining new clients (ironically, Venmo now offers the ability to buy and sell crypto as well).

So without further ado, let’s dive into Shakepay’s many income sources.


Shakepay makes most of its money from the spread it charges on every sale and purchase it facilitates for its customers.

The price difference between buying and selling a security is known as a spread. Suppose that the price of Ethereum is $3,000 and Shakepay sells it for $3,050 (example pricing). Shakepay will then keep the difference (i.e., the spread). When a consumer decides to sell a coin, the same rules apply.

Shakepay, on the other hand, is not a typical trade. In a typical exchange, like Binance, the demand and supply for a certain currency would be pooled, and then the exchange would simply match the demand and supply. In this case, a tiny commission would be charged on the purchase or sale of the product.

Rather than trying to be a sophisticated exchange, Shakepay aims to make it as easy as possible for people to become involved with cryptocurrency and use it as a regular payment method.

A similar approach has been used by other firms, such as MoonPay. In instead of using a spread, they simply charge a fee for each purchase or sale.

What Is Shakepay

Fees for making and receiving payments

When customers use Shakepay’s debit card, the company collects interchange fees from the transaction.

Shakepay first released the card in December 2021, as previously announced. Customers may use Visa to make purchases at one of the many millions of merchants that accept it online and in-store across the globe.

A 1% payback in Bitcoin will be added on top of it as an added bonus. They even get 2% back on the first CA$5,000 invested.

Because of the generosity of its heart, Shakepay no longer pays out compensation to clients. Instead, when a consumer pays with a credit or debit card, the business receives a “interchange charge.” The merchant who took the payment is responsible for paying the interchange charge.

These costs are then split between the card issuer, Peoples Trust Company, and the card processor. Banking institutions that have been granted licenses charge an interchange fee of one percent or less. They are limited to a maximum of 1.5% in Canada.

Shakepay is able to entice new customers by offering them cashback incentives (similar thinking is being used for its P2P payment product).

For now, cashback benefits are being phased out, but it’s likely that they’ll be replaced by affiliate income from cashback partners like Starbucks.

Shakepay is now losing money on any consumer who does not spend more than CA$5,000 (since interchange fees are capped at 1.5 percent in Canada). It may even lose out on its 1% cashback benefit if it has an arrangement with Peoples Trust Company.

Funding, Revenue, and Valuation of Shakepay

According to Crunchbase, Shakepay has received $36 million in venture capital investment in five rounds.

Golden Ventures, Broadhaven Capital Partners, QED Investors, BoxOne Ventures, and many more are among the notable investors in the company.

In January 2022, Shakepay raised $35 million in Series A investment, valuing the company at $251 million.

For the time being, the firm, which is privately owned, is not providing any income data to the general public.

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