Coinbase is a cryptocurrency trading platform that’s been around for about a decade now. Initially set up as a means of giving people easier access to trading Bitcoin.
Today, Coinbase is among the fastest-growing platforms for trading and managing digital currency. Among its many components, Coinbase Commerce continues to attract users and intrigue businesses all over the world. With more and more merchants and businesses looking to leverage the power and convenience of cryptocurrency payments, platforms like Coinbase Commerce offer a handy solution today.
This Coinbase Commerce review will walk you through an in-depth look at what it is and all its essential features. If you were looking for an overview of the Coinbase exchange, you should check out our Coinbase review instead.
What is Coinbase Commerce?
Coinbase Commerce is a Coinbase account dedicated especially to businesses and merchants, which allows them to accept and process cryptocurrency payments. This component of Coinbase serves as a merchant payment program where users can pay with a variety of supported cryptocurrencies.
So far, the transfer of digital currency normally takes place through wallet-to-wallet services. While this mode of transfer is adequate for minor transactions, bigger transactions can be quite cumbersome. Coinbase Commerce offers a dedicated solution where cryptocurrency can safely be transferred from customers to merchants.
How Does Coinbase Commerce Work?
Coinbase Commerce works like most other merchant payment platforms, except with cryptocurrencies instead of traditional money.
Similar to other payment processors, you start by creating a Coinbase Commerce account. This process involves multiple steps where you set up the account for accepting digital currencies. The creating of your account involves:
- Signing up with a preferred email and verifying it during account creation.
- Set up a 2-step verification process using programs like Google Authenticator.
- Create an automatic wallet associated with the platform.
- Create a backup of the wallet on your preferred platform, such as Google Drive.
- Begin accepting digital currencies for your goods or services.
Once your Coinbase Commerce account is up and ready, your customers can immediately begin making cryptocurrency payments through the platform. Although your account exists and operates under Coinbase’s existing infrastructure, you still retain full ownership over its functioning and contents.
For instance, when setting up your wallet, the system generates a unique ‘seed phrase’ that serves as the key for accessing your wallet. This key is entirely confidential and not even the Coinbase servers have access to this key. So, you have full control over how to manage the funds accumulating in your account.
Payments need not only be made through the wallet. Customers can also opt for manual payments that transfer digital currencies to their accounts. Each payment ensures that the funds are collected in your Coinbase merchant account. And you have full liberty to store, manage, withdraw, or transfer these funds at your discretion.
So, Coinbase Commerce is an efficient way of setting up a payment processor that customers and merchants both operate with ease. It removes the complicated sequence of setups and configurations that you have to perform in other online payment platforms. And it still retains the convenience of allowing transactions via cryptocurrency tokens.
Who Can Benefit from Coinbase Commerce?
Any business, vendor, or service provider who wishes to accept cryptocurrency as payment will benefit from a Coinbase Commerce account.
A few instances where a Coinbase Commerce account may prove useful include:
- Any business using e-commerce platforms to sell their merchandise.
- Small businesses or start-ups with a special focus on business-to-business software.
- Businesses that are using the online route to deliver their services.
- Developers seeking to market and sell their latest applications on the web.
- Individuals offering dedicated services or skills transferable via the internet.
These are a few examples where Coinbase Commerce can prove to be exceedingly helpful in speeding up payments and opening up new modes of transactions for businesses and customers alike.
Major Component of Coinbase Commerce
Similar to other efficient payment processors, Coinbase Commerce comes with an array of features and capabilities. These elements all work together to make Coinbase Commerce a viable, comprehensive, and practical solution for accepting cryptocurrency payments.
Coinbase Commerce Wallet
At the center of all your payments and transactions lies your wallet. As already mentioned, Coinbase Commerce accounts automatically set up a wallet when you’re registering as a user on Coinbase. The wallet serves as your Coinbase merchant account, but without the hassles and restrictions, you’ll find on other platforms.
While setting up this account, you have the option of choosing between a Coinbase managed account or a self-managed account.
If you choose to let Coinbase manage your account, the platform will automatically oversee your transactions and management of transfers. The catch here is that Coinbase will also manage the confidential keys needed to manage the resources in your account. Of course, you can transfer your funds to another wallet where you can personally manage the accumulated currency.
With the self-managed option, you’ll have to personally handle all your account’s settlements and transactions. The upside is that you get access to more cryptocurrencies and retain full control of your account’s behavior along with your private keys. But it also implies that the responsibility of proper management falls entirely on your own head.
Coinbase Commerce API integrations allow you to seamlessly add or connect your Coinbase Commerce account to multiple avenues. If you have a website for doing business, Coinbase Commerce API will let you set up personalized checkout sections for visitors. The platform offers libraries in a variety of options that include Python, Ruby, PHP, etc.
The API key can be easily generated under the ‘Security’ tab when you go to ‘Settings’ in your profile.
Once the key is created, you can simply copy the figures and paste them into the destination field. You don’t need any specialized programming or coding skills to perform these actions.
If your online business currently uses platforms like WooCommerce or Shopify, Coinbase Commerce easily integrates with either of these platforms so that you can immediately begin accepting cryptocurrency as a payment option.
Coinbase Commerce Point of Sale
Coinbase Commerce allows merchants to create virtual checkouts or a POS interface for quickly settling purchases. The platform will generate a key and a web link that lets you access the page from any browser-supported device.
Any product or service you created may appear here based on what your customers picked. Coinbase will also generate a QR code based on the preferred currency of the customer. The buyer can proceed to scan this code and transfer the agreed amount to your merchant account.
Coinbase Commerce Invoice
The platform also allows merchants to create an invoice based mostly on the customer’s details. It’s a basic template that doesn’t require a lot of input. So, creating your invoices from this section may help save time and energy. On the other hand, the template may be too basic for some businesses that require more details.
You start by entering some essential information about the customer, along with the requested amount and a memo (optional).
Once entered, the system will generate a link or code that you can use to access the finished invoice.
Coinbase Commerce Fees and Supported Currencies
Signing up to the Coinbase Commerce platform is completely free. So, you don’t incur any fees for creating a Coinbase Commerce account. This is also a good reason why new users tend to sign up without hesitation and explore the features and capabilities.
Coinbase Commerce has a flat and uniform 1% fee on all transactions that involve cryptocurrencies. This fee is in lieu of the infrastructure, reporting tools, core components, and overall services that the platform provides. Ethereum-hosted assets will experience the fee deduction immediately when the buyer makes the payment. And non-ERC-20 currencies will trigger the deduction only when you withdraw your funds from the Coinbase Commerce account.
Coinbase Commerce Supported Currencies
The platform currently supports about seven different cryptocurrencies that are widely used across many other platforms and exchanges. These are:
- Bitcoin Cash
- USD Coin
Coinbase Commerce FAQs
For customers, the platform displays clear instructions on how to choose your preferred currency and how to transfer the funds. Coinbase Commerce will also notify the merchants whenever any legitimate payment is conducted.
To withdraw your funds from Coinbase, or Coinbase Commerce specifically, select the ‘Balances’ tab on the left and click on the ‘Withdraw’ button. A small window will appear/pop up where you can choose the currency amount you wish to withdraw and the destination address where you wish to send it.
Coinbase is the centralized exchange, and Coinbase Commerce account is the wallet where you manage your funds. To link or transfer funds between the two, select the ‘Buy or Transfer‘ option in your wallet and enter the currency amount you wish to transfer.
You don’t need detailed configurations for your Coinbase merchant account to start functioning. The initial setup process prepares all that is needed to start trading immediately. You need only pay attention in opting either for the self-managed or the Coinbase managed account.
Coinbase Commerce allows you to perform refunds on the interface without having to use specific APIs for the purpose. Simply open the particular transaction and click on ‘Refund.’