Cryptocurrencies have become very popular, and many people now complete transactions using such digital money. No wonder that modern businesses have started to deploy cryptocurrency payment processors in order to keep up with the trend. There are several cryptocurrency payment processors with different features and fees. Below, we will help you choose between Bitpay vs Coinbase by comparing their features, benefits, and pricing rates.
What is Bitpay?
When it comes to processing Bitcoin payments, Bitpay is one of the most popular choices. The company is widely known with a good reputation, and they provide their services at affordable rates. Bitpay is a payment service which enables you to receive payments in Bitcoin and get the funds deposited directly to your bank account. See also: Coinbase vs Bitstamp.
After receiving a Bitcoin payment, Bitpay can convert it into a currency and send it as a deposit to your bank account. Bitpay supports multiple currencies such as USD, EUR, and CAD. In addition, Bitpay operates in 38 countries worldwide. This is an ideal choice for online merchants operating locally, regionally, or globally who want to accept Bitcoin payments.
One important difference between Bitpay vs Coinbase is that Bitpay is a dedicated payment processor. It is focused on handling transactions, and not on other things. This is not a problem if you only need to accept Bitcoin payments, but you may need to find an alternative if you also want to trade cryptocurrencies on the same platform. Bitpay provides several levels of features suitable for small, medium, and large companies.
Bitpay: Features and Benefits
As a payment processor, Bitpay is quite feature packed. It comes with powerful features such as invoicing in 40 languages, email and mobile notifications, mobile optimization, shopping cart plugins, billing plugins, scheduled billing, and ledger payment tracking. With these features, you can easily integrate and customize Bitpay to suit your business. It also has excellent security features such as the cryptographically secure API and two-factor authentication via Google Authenticator.
If you are looking for a simple and convenient Bitcoin payment processor, Bitpay is a great answer. It is very fast and easy to set up. It has been optimized not only for desktop users but also mobile users. The processing fees are very competitive. Bitpay also enables you to cater to international customers, thanks to the multi-language invoice support and multiple supported national currencies.
However, Bitpay does have its limitations. Since this platform is focused on payment processing, it does not have the features needed to trade cryptocurrencies directly. While it can make direct bank deposits, it has no online wallet of itself. It does not serve cryptocurrency purchase.
When choosing between Bitpay vs Coinbase, pricing is one important aspect that you have to consider. Bitpay offers very competitive pricing. While most credit cards have a 3% processing fee on each transaction, Bitpay only has a flat 1% settlement charge. This charge already covers the conversion and bank deposit processes.
Bitpay actually provides two options, the Starter Plan and the Business Plan. You can start with the Starter Plan, which is free to use. However, this plan can only serve up to 30 transactions per month with a daily limit of $1,000. However, this plan already provides the plugins, payment tools, payment and refund management, ledger, API, SDKs, and libraries. This is a good choice if you want to test it first.
Meanwhile, the Business Plan has a 1% transaction fee. This plan allows unlimited transactions. In addition, it provides multi-user login access, priority support, and demandware cartridge.
What is Coinbase?
On the other hand, Coinbase is more widely known as one of the world’s largest cryptocurrency broker. The users can buy and sell cryptocurrencies on this platform. The supported cryptocurrencies include Bitcoin, Ethereum, and Litecoin. However, Coinbase actually also has a payment processor which currently only supports Bitcoin.
Coinbase’s payment processor is pretty much similar to Bitpay. It is designed to allow online merchants to receive Bitcoin payments. However, each Coinbase account has an online wallet, and the payments you receive are stored in this wallet. You can keep them in Bitcoin or convert them into a fiat currency. Furthermore, you can also choose to convert the whole payment or just a portion of the payment.
Coinbase: Features and Benefits
Since Coinbase is a cryptocurrency broker with a payment processing service, it comes with some distinctive features. As explained above, Coinbase has an online wallet through which you can purchase or sell cryptocurrencies. This is great if you are interested in trading digital money. Coinbase supports multiple deposit and withdrawal methods that have different processing fees, but the fees are generally reasonable.
If we compare Coinbase’s payment processor against Bitpay, it does have some noticeable disadvantages in terms of integration and customization. Currently, Coinbase supports fewer plugins and integrations than Bitpay. However, this may change in the future, as the developer team of Coinbase is actively adding new plugins and integrations.
One difference between Bitpay vs Coinbase is that Coinbase only allows one custom parameter on each callback. However, in most cases, this is not an insurmountable problem.
Coinbase’s payment processor has very interesting pricing. If you choose to keep all the payments in Bitcoin in your online wallet, there is no processing fee or charge applied. Meanwhile, if you choose to convert the Bitcoin payments into your local currency, there is a 1% transaction fee. Depending on the volume of your transactions, the transaction fee may become lower.
Such pricing will encourage most users to keep their funds in Bitcoin. From here, you can trade your Bitcoin funds when the conversion rate is good. Such method may give you a bigger amount of profit. Nevertheless, note that your bank account and payout method may have additional fees which are not applied by Coinbase. For example, some banks in the US apply a payout fee of $0.15 per ACH.
|- Bitcoin payment processor||- Cryptocurrency broker that has Bitcoin payment processor|
|- Directly converts payments to bank deposits||- Deposits payments to your account’s online wallet|
|- No cryptocurrency trading||- Has cryptocurrency trading|
|- 1% transaction fee that already covers the conversion and deposit||- Keeping payments in Bitcoin is free, but converting them to a fiat currency has a 1% processing fee; withdrawals from the online wallet have separate fees|
|- Recommended if you just want to receive Bitcoin payments||- Recommended if you want to keep Bitcoin funds for trading|
Bitpay is a great choice if you prefer a simple Bitcoin payment processor that can receive Bitcoin payments and directly deposit them to your bank account. The transaction fee is very low. However, if you also want to trade cryptocurrencies, Coinbase should be your choice. Coinbase’s payment processor deposits the payments in your account’s online wallet, so you can further trade the digital money.