Whether you are a business owner just starting out in the world of cryptocurrencies, or you are simply looking for a way to pay for goods and services online with BTC and other digital currencies, you will likely come across the terms Bitpay and Coinbase Commerce.
But what is the difference between these two services? In this article, we will take a look at the features and benefits of each platform, so that you can decide which one is right for you.
Wallet and cryptocurrency exchange service Coinbase offers an enterprise digital payment service called Coinbase Commerce. In addition to Bitcoin and Bitcoin Cash, it supports DAI, Ethereum, Dogecoin, USD Coin, and Litecoin. Merchant wallets are directly credited with payments made by your customers.
By contrast, Coinbase is a well-known cryptocurrency exchange that makes it easy to buy, sell, and exchange cryptocurrencies. Bitcoins are easy to buy with Coinbase. Coinbase wallet integrates bitcoin which makes it easier for users to spend crypto.
One of the top cryptocurrency exchanges, Coinbase, operates Coinbase Commerce. You can read more to determine is Coinbase Commerce is good for your business here. Businesses and merchants across the globe can accept payments in a cryptocurrency of their choice.
Payment options can be added to the shopping cart or integrated with checkout workflows. Payments made in crypto wallets get credited to your Coinbase Commerce account, from which you can transfer them to your wallet.
Using a valid email address and phone number, you can sign up for Coinbase Commerce no matter where you are. An additional layer of security is provided by its two-factor authentication mechanism based on the Google Authenticator app.
If you sell services online, this appears to be one of the best option. As well as being affordable, it's ideal for freelancers and small business owners who have low overhead products. And, your e-commerce site can seamlessly integrate with leading platforms like Shopify and Woo Commerce.
Coinbase Commerce can be used for recurring cc payments, recurring payments, and automatic vendor payouts. It can compete with leading payment gateways, as well as approve invoices and accelerate subscriber growth in your online shop. Back-office financial operations can reach milestone payments and revenue growth with self-serve invoicing.
What Is Coinbase Commerce?
Currency exchange and wallet service Coinbase offers an enterprise digital payment service called Coinbase Commerce. You can accept payments in Bitcoin, Bitcoin Cash, DAI, Ethereum, Dogecoin, USD Coin, and Litecoin using the service.
One of the top cryptocurrency exchanges, Coinbase, operates Coinbase Commerce. Using Coinbase Commerce, businesses and merchants can accept payments in the cryptocurrency of their choice from anywhere in the world.
Payments with Coinbase Commerce can be integrated into your checkout workflow or added to your shopping portal as a payment option. Customer cryptocurrency payments get credited to your Coinbase Commerce account, from which you can transfer them to your wallet.
Using a valid email address and phone number, you can sign up for Coinbase Commerce no matter where you are. An additional layer of security is provided by its two-factor authentication mechanism based on the Google Authenticator app.
Is Bitpay and Coinbase the Same?
Coinbase and Bitpay wallets have different aims. Bitpay was designed for merchant payment processing as opposed to customers since merchants are able to convert fiat currencies directly if they wish. As a matter of fact, Coinbase is an exchange, while Bitpay is a payment service provider that offers merchants the option of accepting Bitcoin as a form of payment.
Bitpay
Bitcoin payments processed by Bitpay in 2017 topped $1 billion. The company is presently adding support for several blockchains and digital currencies. This is the first bitcoin payment provider to support multiple blockchains.
As a result, merchants will have more options since they can select the blockchain with the cheapest mining fees and the fastest transaction times.
Currently, they are working on expanding their platform to support Segregated Witness, a faster and cheaper blockchain upgrade. Using Google Authenticator and two-factor authentication, Bitpay is quite secure.
To make bitcoin payments as easy and smooth as possible, the company aims to lower the cost for merchants. Merchants now have even more options with the integration of Bitcoin Cash.
You can accept bitcoin as a payment method through Bitpay if you are a merchant. They offer flat-rate pricing, daily bank settlements, and guaranteed exchange rates . In addition, Quickbooks, an excel application useful for taxation and accounting, offers the option to import bitcoin sales.
Among the most popular uses for merchants are the sale of digital content, travel, and tourism, and political campaign donations. GoCoin, Coinpayments, and Bitcoin Payment Solutions (BIPS) are Bitpay's main competitors in the financial services space. The company is currently leading the market.
With BitPay, you can accept Bitcoin payments from merchants at the lowest possible rates. In many cases, there are no transaction fees or hidden charges. A typical cryptocurrency exchange has heavy upfront fees as well as hidden charges.
By securing the exchange rate during checkout, Bitpay eliminates price volatility during the buying process.
Additionally, it allows for easy integration. It is incredibly easy to use its shopping cart plugins, which provide 20 different options. Unlike most credit cards, they charge just 1%.
With the starter package, they offer a flat 1% settlement charge for businesses. The platform supports eight major currencies, including Bitcoin, and supports invoicing in 40 languages.
Security has never been compromised and it has never been hacked. The Bitcoin debit card offered by Bitpay is also Bitcoin-backed. The card can be used anywhere Visa is accepted, and ATM withdrawal fees are currently $2.
Coinbase
Bitcoin exchange Coinbase has over 1 million active users and is one of the largest in the world. In addition to being one of the most popular, it is also based in the USA.
As far as how it operates and how it is regulated, Coinbase is often compared to Goldman Sachs in the cryptocurrency space. It is closely monitored by US authorities, and you can rest assured that your money is safe with them. If it was somehow hacked, which hasn't been the case in seven years, you would be refunded. As far as security is concerned, they are the best.
With Coinbase, you can buy, store, and exchange Bitcoins with this cryptocurrency wallet. A portion of incoming online payments can also be converted to fiat currency. Additionally, this exchange has multiple wallet services that allow users to store incoming Bitcoin transfers in Bitcoins on the same platform.
Investing in cryptocurrency is what Coinbase focuses on, and it does a great job at it. Most other cryptocurrency exchanges lack an intuitive interface and a smooth buying and selling process, which makes them stand out from the crowd.
With Coinbase, you can buy and sell all cryptocurrencies at once and it's a one-stop-shop. The Global Digital Asset Exchange (GDAX) is its own full trading exchange. Coinbase's main product is the GDAX.
GDAX trading fees are approximately .025%. For credit card purchases, Coinbase charges a 3.99% fee, and for bank transfers, it charges a 1.49% fee. A bank transfer takes five days and a credit card payment takes one minute.
Coinbase offers high buying limits and high liquidity, and SEPA transfers are free. Furthermore, Coinbase's verification process is far faster than most other large cryptocurrency exchanges.
Is Bitpay Part of Coinbase?
No, it isn't. Coinbase is an exchange service for Bitcoins that is paired with the BitPay application. Your Coinbase account can be linked to your BitPay app once Coinbase approves your account.
Which is Better: Coinbase Commerce Or BitPay?
Coinbase Commerce and BitPay both have their similarities, advantages and disadvantages. Which of these services will be best for you will depend on what you and your business needs.
Coinbase Commerce is a blockchain-based service that facilitates cryptocurrency transactions. The service supports Bitcoin, Bitcoin Cash, DAI, Dogecoin, Ethereum, Litecoin, and USD Coin.
With Coinbase Commerce, all payments are made on the chain, so fraud is eliminated. It reduces fees associated with foreign exchange, payment processor fees, and other third-party transaction fees.
Coinbase Commerce does not charge a transaction fee. Bitcoin network fees vary based on how many transactions you process and the size of the transaction.
Using a cryptocurrency exchange, you can convert your cryptocurrency payment to fiat currency (such as the U.S. dollar), which might incur additional fees. Merchants are not charged any commissions to accept Bitcoin payments, but the system retains a one percent fee for converting funds.
On the other hand, BitPay is a Bitcoin and cryptocurrency payment processor for merchants and consumers that allows them to accept cryptocurrency as payment instantly and without risk.
At present, credit cards are able to charge processing fees of up to 3% on every transaction. In contrast to credit cards, BitPay charges only a flat 1% settlement fee for conversion of crypto to fiat.
Invoices can be generated and managed through BitPay. Refunds can be issued, bills can be managed, rates can be retrieved, merchant ledger entries can be viewed, and much more can be done through BitPay API.
The business receives the payment directly from BitPay when the customer makes a payment in Bitcoin or Bitcoin Cash. The business can choose from eight major currencies, including the US Dollar. The business locks in the exchange rate at the time of payment. Therefore, BitPay takes the hit if the price of Bitcoin fluctuates from the moment the customer pays to the moment the money reaches the business.
So Which Payment Processor Do You Choose?
If you’re looking for a good cryptocurrency payment processor, Coinbase Commerce and Bitpay are two great options. They are both innovative technology companies with years of experience in the payments industry.
Coinbase Commerce integrates with WooCommerce and Shopify so if your online store uses these systems, this payment processor may be perfect for your business.
We’ve had great success working with both of these providers and we know they can help accelerate subscriber growth in your online shop.
