BitPay is the world’s largest bitcoin payment processor. It allows businesses to accept bitcoin as payment, and charges them lower processing fees than most credit card companies.
More customers want to settle their bills using bitcoin. Businesses are open to it, but they don’t want the volatility risk of taking bitcoin directly. Enter BitPay: the middleman between customer and business.
Customers make payments in Bitcoin or Bitcoin Cash. Then BitPay changes the payment into one of eight major currencies like the US Dollar and pays it directly to the business.
At the time the customer pays, BitPay locks in the exchange rate. That means BitPay takes the hit if Bitcoin fluctuates from the time the customer pays to the time the money reaches the business.
BitPay charges merchants a flat 1% transaction fee, which they say makes them more attractive than the 3% fee that some credit card companies charge.
It also offers other services, like the BitPay card – a pre-paid Visa debit card for consumers. After paying $10 for the card, a person can load it up by converting bitcoin from their bitcoin wallet into US Dollars. Then they can use the card anywhere that accepts Visa. It’s a harmonious way to bring crypto and the real world together.
BitPay also offers an open-sourced wallet for storing bitcoin. It is popular, though it has come under intense scrutiny after hackers managed to tamper with the code – stealing private keys from users.
💻 Online: For online transactions, businesses can add a simple BitPay payment button to their site. There’s also a shopping cart plug-in that’s compatible with software like Shopify.
🛍 In-store: Retailers can collect money through BitPay Checkout, which is an app that generates a QR code. The customer scans the code with their app and pays the amount using their own bitcoin wallet.
BitPay makes money by charging merchants a 1% transaction fee. It also charges personal users a network cost fee and a miner fee. The miner fee covers the work of bitcoin miners who verify and add transactions to the blockchain network.
In 2017, BitPay said it was on track to process $1 billion in payments. With its claim to process payments more quickly than international wire transfers, and all for a flat 1% fee, it will continue to attract attention for cross border payments.