Coinbase Commerce Review (Feb 2023): Everything You Need to Know
Coinbase Commerce is a merchant payment solution that helps online businesses accept cryptocurrency payments. The platform leverages blockchain technology in order to facilitate digital asset payments for its customers.
Coinbase Commerce is available to an array of business sectors and can be integrated with popular eCommerce platforms. This provides it with the foundational functionality of traditional payment providers but with the major difference of handling cryptocurrency payments.
If your business wants to make cryptocurrency payments a part of your operations, Coinbase Commerce can be an easy way to start on that path. But it is important to learn more about the service before you can make an informed decision about its adoption. You want to learn about Coinbase.com, its value, customer support, overall service and other critical matters.
To help you through the process, here’s a quick guide to the crypto exchange, to Coinbase Commerce as well as its operations, benefits, and related costs. By going through these details, you can equip yourself with crucial knowledge about the service and how its offerings can meet your needs.
Coinbase Commerce Review: What Does Coinbase Commerce Do?
Launched by Coinbase, a popular U.S. based cryptocurrency exchange, Coinbase Commerce focuses on making digital currency transactions easier for businesses. Through this facility, it allows businesses to accept cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), USD Coin (USDC), and Dai (DAI).
Since Coinbase operates as a popular exchange and digital currency solutions provider, it uses its existing service infrastructure to support Coinbase Commerce. As a result, anyone who opens a merchant account with Coinbase Commerce is supported by the same level of security and accessibility that is associated with Coinbase’s cryptocurrency exchange.
Coinbase is similar to Paypal and Stripe in that it offers one critical service and then it presents more products with various types of pricing.
Coinbase Commerce allows its customers to open merchant accounts, integrate their account information on their own platform, and streamline their cryptocurrency checkout process. It also makes way to receive these payments directly in the merchant’s own account and ensures that withdrawals can be made just as simply.
This enables online merchants, services providers, and businesses to accept cryptocurrency payments in a more smoother approach than opening individual cryptocurrency accounts and listing their personal account information manually on their websites or apps.
The usage of Coinbase’s existing network of solutions also allows the exchange’s customers to make their payments through Coinbase Commerce in an easier manner. For instance, those customers who use the company’s cryptocurrency wallet labeled Coinbase Wallet can make their payments on Coinbase Commerce through a process flow that seems familiar to them.
How Does Coinbase Commerce Work?
The overall mechanism of Coinbase Commerce is similar to conventional payment processors.
- You can open an individual merchant account that is associated with the Coinbase Commerce infrastructure. This still gives you complete control over your funds with direct deposits.
- You can use Coinbase Commerce payment processing services to accept cryptocurrency payments. This includes the integration of Coinbase Wallet as well as manual cryptocurrency payments.
- You can directly receive your cryptocurrency payments in your individual merchant account and have complete access over its withdrawal and conversion.
- You can withdraw the received amount to another account of your choice and use the funds according to your liking.
This allows you to leverage an established way to accept cryptocurrency payments – that too in an easier manner. As a result, you don’t have to jump through hoops just to offer your customers digital asset payment options.
But you might think, what about transaction fees? What about competitors like Binance? Are there Coinbase commerce alternatives? Sure, these are fantastic questions but let’s learn more about Coinbase Commerce.
Who Can Use Coinbase Commerce?
Coinbase Commerce can be utilized by a variety of businesses. The service is mainly focused on online payments, which means that it caters to those entities that have a professional website or app.
Examples of individuals and businesses who can benefit from Coinbase include but are not limited to:
- Startups selling B2B software solutions.
- Small and medium-sized businesses (SMBs) selling their products through eCommerce.
- Service providers selling online services of any kind.
- Software developers selling app solutions for mobile devices.
- Freelancers selling an array of services on an individual basis.
What is the Benefit of Getting a Coinbase Commerce Account?
With an email address-based signup process that gets completed within a few minutes, Coinbase Commerce provides you with a straightforward way to obtain your own cryptocurrency wallet for your commercial transactions.
Through easy integrations and quick setup, the overall process also bridges the barriers that are usually noticed with cryptocurrency payments.
Along with these features, Coinbase Commerce offers a slew of other benefits. Some of its most popular advantages are mentioned below.
Accept Multi Currency Payments
By using Coinbase Commerce, you can accept your payments in multiple cryptocurrencies without having to open individual cryptocurrency merchant accounts. This makes it easier to accept cryptocurrency payments and provides you with ideal convenience.
This particular advantage is quite significant because it saves you from running from one exchange to another in order to cover all your bases for popular cryptocurrencies. In turn, this saves your time, funds, and efforts through a single solution.
Since these multiple currencies belong to separate blockchain networks, it automatically expands your pool of potential customers. This is similar to accepting multiple types of payment cards such as Visa and MasterCard in a single conventional setting.
Have Complete Control Over Your Funds
When you sign up with a conventional merchant account, your payment is typically received by the merchant before being transferred to your account. That is not the case with Coinbase Commerce.
In Coinbase Commerce, any funds that you receive in your merchant account are only controlled by you. This feature is protected by a seed phrase, which enables you to have exclusive access to your account and funds.
This particular option allows you to enjoy the extensive control of using cryptocurrency payments. At the same time, it still gives you the ability of using a modern payment solution in the form of Coinbase Commerce.
Project the Privacy of Your Personal Account
While the Coinbase Commerce solution still requires you to utilize a cryptocurrency account, having a merchant account with the service saves you from publicly sharing your personal wallet address.
Since the customers only see the wallet address for your business through Coinbase Commerce, you don’t have to compromise your privacy in the name of payment accessibility.
This also makes sure that even when you are using a personal account on the side, its address is safe from being public right from the start. These benefits are especially profound for those providers who want to keep their business payments separate from their personal funds.
Easily Outline Payment Details
Opening a Coinbase Commerce account also allows you to directly outline your wallet address online using the solution’s hosted checkout process. This saves you from designing individual pages or standalone checkout processes in your website or app.
Instead, you can simply use the solutions offered by Coinbase Commerce to make premade checkout processes available at your online property. This takes out a major barrier to payment fulfillment.
These processes are designed to offer a modern checkout process flow. This ensures that your customers are also benefiting from tried-and-tested solutions that are also in line with the latest customer experience trends.
Offer Coinbase Wallet Option
Coinbase Wallet is a payment service that allows Coinbase customers to make payments directly through their accounts. When you sign up for Coinbase Commerce, your audience can also see the option to pay through the Coinbase Wallet app.
Your customers can then select whether they want to use Coinbase Wallet to process the payment. This offers flexibility to your audience and adds to your value as an online seller. In turn, it helps your business grow with the use of innovative solutions.
Coinbase Wallet is considered a highly secure solution that is on par with many other competitive cryptocurrency wallet services. This also lets you access a large pool of customers who might already be using Coinbase Wallet.
Benefit From eCommerce Integrations
Coinbase Commerce allows quick integrations with no less than 12 popular eCommerce platforms, which makes sure that you can quickly set up your payment services.
With payment buttons and checkout process flows, Coinbase Commerce provides you with an easier way to convey your payment details to your customers. These integrations come with modern design and functionality, which ensures an optimal customer experience.
This goes a long way towards saving your setup costs as well as time, which once again provides you with extensive flexibility as well as ideal convenience to accept cryptocurrency payments through a reliable solution.
Use API Keys
The Coinbase Commerce service also comes with its own application programming interface (API) keys that let you integrate the solution into your apps.
This is quite beneficial for those sellers who want to accept cryptocurrency payments through their mobile apps but do not want to direct clients to a third party checkout page. Since these API keys are secure, the integrations also remain safe.
This delivers an easier way for you to adopt a credible cryptocurrency payment option while also offering the same peace of mind to your customers. As a result, it contributes to the commercial success of your app or service.
Benefit from Payment Thresholds
Since the cryptocurrency market is volatile, fluctuations in market value are all too common. Unless you are using a stablecoin that has its value tied to fiat currency, you can expect these fluctuations to show across all cryptocurrencies.
This can cause problems in selling solutions with preset prices. But that is where Coinbase commerce can help. With the ability to set thresholds for flexible payments, you can choose cost limits above and below your list price.
This option allows your customers to adjust their intended payment according to current market conditions while still staying in line with your minimal costs. This way, you can accept more sales without driving into a loss.
Utilize Invoice Feature
If you run a business as a solutions provider or a freelancer, you may not have any prepackaged items available to list on your platform. But you might still want to use cryptocurrency payments as your preferred method of compensation.
By using the Invoicing feature on Coinbase Commerce, you can easily breeze through the creation of timely invoices for your customers. The process can easily be controlled through your Coinbase Commerce user interface.
Your customers can then choose to pay the outlined amount using your Coinbase Commerce payment process. This adds a more professional and credible way for you to receive one-time and ongoing payments.
Do I Need a Coinbase Exchange Account for Using Coinbase Commerce?
Coinbase Commerce is a standalone service that does not require you to have a Coinbase exchange account to use its features. With that being said, if you want to convert your Coinbase Commerce funds into fiat currency, then you require a Coinbase exchange account.
It’s because Coinbase Commerce by itself is a cryptocurrency-only service and does not entertain fiat withdrawals. However, it does accept stablecoin withdrawals through USDC and DAI. With that being said, if you want to avail the benefit of fiat withdrawals, that feature is only available through an accompanying Coinbase exchange account at a certain fee.
What is the Cost of Using Coinbase Commerce?
Coinbase Commerce does not have any fees associated with its service. This means that you can open an account free of cost. However, you still need to pay network fees for withdrawal to another cryptocurrency wallet. These charges depend on a case to case basis, with the fee going directly towards the respective cryptocurrency network.
If you have a separate Coinbase account in the exchange, like Coinbase Pro, and want your merchant account funds to deposit there in the form of fiat currency, a 1 percent conversion fee is charged by the solution.
This makes Coinbase Commerce an affordable solution to integrate cryptocurrency payments into your operations. However, you still need to consider the costs of network fees as well as the possible conversion fees if you want to continue using the service for ongoing payments.
Indeed, company size, the need for crypto payments, an official crypto wallet, and other aspects are factors you would want to think about in using these new financial services.
Is Coinbase Commerce Worth It?
The main advantage of using Coinbase Commerce is the ease of use that it brings to the table. Instead of maintaining multiple accounts with different exchanges, you can open a merchant account with a single service. In place of listing various wallet addresses in manually-designed checkout processes, you can use integrations and API features.
Depending on your requirements, cryptocurrency usage, as well as the need to provide a cryptocurrency payment option to your audience, Coinbase Commerce can be a viable solution. If you already have a Coinbase exchange account in place, adopting the solution becomes even easier. But you still need to give a good look to all your requirements as well as related factors before adopting the solution.
Whether you are an entry level individual into aspects related to Coinbase Commerce or you are more of an expert, this simple guide helps shed more light on Coinbase Commerce.