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BitPay vs CoinPayments: What are the differences?
Introduction BitPay and CoinPayments are both payment processing platforms that allow businesses to accept cryptocurrency payments. While they serve a similar purpose, there are several key differences between the two platforms.
Integration and Supported Coins: BitPay offers a more streamlined integration process with various e-commerce platforms, making it easier for businesses to start accepting cryptocurrency payments. It supports a limited number of cryptocurrencies, including Bitcoin and Bitcoin Cash. On the other hand, CoinPayments supports a wide range of cryptocurrencies, including popular ones like Ethereum, Litecoin, and Ripple, providing businesses with more flexibility in accepting different types of virtual currencies.
Fees and Cost Structure: BitPay charges a flat transaction fee of 1% for its payment processing services, making it relatively straightforward and predictable for businesses. CoinPayments, on the other hand, offers a tiered fee structure based on transaction volume, ranging from 0.5% to 0.9%. This can benefit businesses with higher transaction volumes, as they can potentially access lower fees.
Settlement Options: BitPay allows businesses to receive settlements in either fiat currency or cryptocurrency. This flexibility enables businesses to easily convert their received cryptocurrencies into traditional money. In contrast, CoinPayments primarily settles transactions in cryptocurrency, limiting the immediate access to fiat currency for businesses. However, CoinPayments does offer a service called CoinFunds, which allows users to convert their balances into a stablecoin (USD-pegged coin) for added stability.
Wallet Integration: BitPay provides its own digital wallet for businesses to manage their cryptocurrency funds. This integrated wallet simplifies the payment process by facilitating instant fund settlement. CoinPayments, on the other hand, allows businesses to integrate their own wallets or use the CoinPayments hosted wallet as per their preference. This gives businesses more control and flexibility over wallet management.
Customer Support: CoinPayments offers 24/7 customer support, providing businesses with round-the-clock assistance for any issues they may encounter. BitPay, although primarily offering email support, also provides phone support from Monday to Friday during certain hours. This difference in customer support availability may play a role in businesses' choice of payment processor, depending on their specific needs.
Additional Services: BitPay offers additional services beyond payment processing, such as payroll functionality and B2B solutions. These added features make BitPay more suitable for businesses looking to utilize cryptocurrency in their day-to-day operations beyond accepting payments. CoinPayments, while primarily focused on payment processing, does offer some additional services like shopping cart plugins and APIs for easier integration.
In summary, BitPay and CoinPayments differ in terms of integration and supported coins, fees and cost structure, settlement options, wallet integration, customer support, and additional services. These differences allow businesses to choose a payment processor that aligns with their specific needs, whether it's a more streamlined integration process, access to a broader range of cryptocurrencies, or added functionalities beyond payment processing.
