Despite what people may say to the recent drop in Bitcoin’s value and the discussion that it has sparked, the supporters of cryptocurrencies wholeheartedly believe that the revolutionary methods which these digital assets bring to the table have a lot of potential in them.
One such supporter of these claims is Coinbase, one of the largest cryptocurrency exchanges in the U.S., which believes that cryptocurrencies will gradually become the primary method in performing online transactions.
It is not only a belief that Coinbase propagates with just its words, but it believes in the notion so much that it has developed its cryptocurrency payment system, which it hopes will be utilized side by side with online credit and debit card payments and other popular methods such as PayPal.
How will it work?
This payment system which Coinbase dubs as its Merchant Services will allow regular business owners to integrate payment buttons on their website just like they do with PayPal and other online payments, and that will allow them to accept payments in cryptocurrencies such as Ethereum, Bitcoin, and Litecoin.
The payments are sent to Coinbase exchange where they are converted into regular currency, and that payment in fiat is then credited to the business owners’ account to save them from the risk of fluctuation. This is to ensure that business owners are not hesitant in going with this payment method and feel confident enough to adopt it.
By this payment method, customers will be able to pay these businesses by going to a dedicated payment page by Coinbase through their shopping cart, just like they do for other payment methods such as PayPal.
Due to hosting these payment solutions on its own, Coinbase will ensure to provide the utmost security to anyone who uses the method to complete their transaction in cryptocurrency.
Coinbase currently supports popular platforms such as WordPress, WooCommerce, and Magento. A complete list of supported platforms can be seen here.
The plugins are also open-source, and Coinbase encourages anyone to develop further solutions through them that could help the community benefit from added functionalities and support.
By providing these services, Coinbase aims to bring cryptocurrency usage to mainstream and encourage more and more people to use their digital currencies while making purchases over the internet.
The system is currently rolled out on a few sites, reports suggest.
Competition for other providers
This creates competition for PayPal in an indirect manner since Coinbase will be exclusively using cryptocurrencies.
However, it also creates direct competition to payment vendors such as BitPay, the whole purpose of which depends upon converting and facilitating fiat-to-cryptocurrency transactions for businesses.
While the long-term effects that this will have on Bitpay and similar providers remain to be seen, it will create an air of competition. This, in turn, might work in favor of users concerning better services and added features, that these companies might integrate to present their services as being superior to the other.