While it’s not screaming to the rafters about a new product for merchants, the crypto community is lauding Coinbase’s new commerce platform.
One of the largest obstacles that prevents many merchants from accepting cryptocurrencies as a payment option relates to the many hoops they must jump through to process the transactions and get their money.
Coinbase recognized this, and developed a platform called Coinbase Commerce. It works similarly to PayPal, and many observers see the new service as being exactly what is needed to help win over merchants.
Making things easier
Coinbase is the largest cryptocurrency exchange, and already had in place a means for merchants to accept crypto payments. That system was seen as burdensome because merchants had to be directly integrated with Coinbase, which meant they had to have a Coinbase account. With the new platform, all that is needed now to make payments is the digital currency that is accepted.
The new platform will feature a Coinbase Commerce button, which is similar to the button PayPal offers its merchants to place on their websites. It’s possible via a plugin.
The site allows for merchants to accept payments for goods and/or services, as well as donations. Checking out, or making the payments, simply entails copying the wallet address or scanning a QR code.
Users can also create an API key to create and update charges using the Coinbase Commerce API.
The cryptos listed as active on the Coinbase Commerce website are Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
Coinbase has been relatively quiet about this service. However, there has been much chatter about it among payment services’ observers.
For example, some are taking notes about which coins are being prioritized. Instead of putting them in alphabetical order, Coinbase Commerce lists Ethereum as the first option.
Noteworthy about Coinbase’s move for merchants is how it could buoy the outfit’s presence in the payment’s space. BitPay is its main competition, and then there’s also PayPal.
A chief complaint among merchants relates to the amount of time it takes to receive the cash after receiving a crypto as payment. Coinbase’s platform is thought to improve the average amount of time in which merchants who accept cryptos must wait when using PayPal. Another complaint relates to chargebacks and fraud, which Coinbase Commerce also addresses.
Those familiar with Coinbase’s commerce platform have noted that it uses MetaMask, which is a bridge that allows users to run Ethereum DApps in their browsers without running a full Ethereum node.
It’s ideal for Coinbase’s commerce plugin because it allows for the button feature to be implemented. MetaMask also improves processing speeds, and security.