COINBASE E-COMMERCE PLATFORM
What is Coinbase Commerce?
Coinbase Commerce is a subsidiary of the popular cryptocurrency exchange, Coinbase. Its parent company, Coinbase has developed a digital payment enterprise. This arm of Coinbase allows e-commerce merchants to receive payments in a variety of digital currencies. These assets include Bitcoin, Ethereum, Bitcoin cash, USD coin and Litecoin. The platform directly credits the payments to the Coinbase Commerce account of the merchants.
How does Coinbase Commerce work?
Coinbase, the leading cryptocurrency exchange in the world realized the unexploited potential in the digital payments market. It set up this platform which conveniently enables customers and merchants to pay and receive payments in cryptocurrencies. The customers can make their payments in their preferred cryptocurrency out of the ones allowed by the platform. The platform directly credits the payments to the Coinbase Commerce account of the merchants. From there, the merchants can withdraw the cumulative amount to their wallets. The platform facilitates cryptocurrency payments anywhere around the globe with negligible transaction fees, a portion of which is provided to the crypto miners.
The Coinbase Commerce platform determines the transaction fees according to the type of cryptocurrency paid as well as the amount of payment done.
The platform charges between $1 to $5 for Bitcoin payments in proportion to the gross amount transacted. The platform charges less than $1 for other currencies which include Ethereum, Bitcoin cash, USD coin and Litecoin.
The company has explicitly clarified that the merchants cannot liquidate their assets just by having an account under the Coinbase Commerce platform. This platform is merely a link to accept payments. The merchants are required to create an account on an exchange such as Coinbase or Binance to liquidate the received payments.
Which platforms have partnered with Coinbase Commerce?
Coinbase Commerce is a platform for merely facilitating payments. This platform does not allow merchants to sell their products. Thus, Coinbase Commerce has partnered up with various platforms that have been developed to be an online store. These platforms include Shopify, WooCommerce, Prestashop, Magento, OpenCart, Zen Cart, Drupal, osCommerce, WHMCS, Spree, X-Cart and Gravity Forms. All the merchants who sell on these platforms can choose to receive payments via the Coinbase Commerce platform on account of their partnership.
What did the platform announce recently?
Recently, Coinbase Commerce announced their decision to introduce payments in Dogecoin. Adding to the existing digital assets such as Bitcoin, Bitcoin cash, Ethereum, Litecoin and USD coin, the customers and merchants will be allowed to accept and pay in Dogecoin. In reaction to this announcement, the value of Dogecoin rose over 15% in a matter of three days.
Dogecoin becomes the seventh digital asset to be integrated with the Coinbase Commerce platform with this announcement. Many platforms and personalities have acknowledged the ‘meme’ coin. After Elon Musk’s declaration of Dogecoin being in his portfolio, Coinbase Commerce announced the introduction of Dogecoin as a payment method. These two developments have greatly impacted the sentiment of Dogecoin enthusiasts.
Is Coinbase Commerce secure?
Being the subsidiary of a market leader exchange firm, the Coinbase Commerce platform is highly secure. Moreover, the platform does not store any confidential information relating to the wallet addresses, private keys or custodial information. Thus, even if any third parties hack the platform, which is unlikely, they would have no access to any information or their digital assets.
However, its security may have downsides for the users. The platform does not allow the users to change their private keys if they lose their existing keys. If third parties get access to the user’s private keys due to their negligence, they can withdraw all the digital assets anonymously.
What are the benefits of the platform?
Clearly, this platform has immense benefits for the customers, merchants as well as their digital partners.
The customers can choose to make the payments in the form of cryptocurrencies if they do not wish to part with their fiat currencies. Moreover, the transaction fees charged are way lower than debit and credit cards. Users can also make payments for their purchases internationally without incurring international taxes and duties.
The merchants capitalize the most. In a world where fiat currencies lose value to inflation every year, merchants can see appreciation in their asset values. Moreover, if they hold their digital assets for a longer time, they are subjected to lower tax slabs under the long-term capital gains provisions.
Coinbase Commerce is a platform ripe for expansion and with it, the development of online payment is inevitable.