Coinbase Commerce Processes Over $50 Million in Transactions Since Launching in February 2018
- Coinbase Commerce records over $50 million in transactions for last 15 months.
- Merchants on this app include Shopify, Magneto, OpenCart, PrestaShop, and WooCommerce.
Cryptocurrency has easily proven itself in retail transactions around the world, and the proof could not be clearer than with the Coinbase Commerce App. The merchant-focused exchange app only launched last year in February. However, Coinbase announced today that the platform has surpassed $50 million in transactions since its start.
Justin O’Brien, the product lead for Coinbase Commerce, spoke with CoinDesk via phone call, explaining that the second quarter of the year brought the big boost to their volumes. He added that, ever since, the volume has continued to trend upwards.
The Coinbase Commerce app makes it easier for merchants to accept cryptocurrency as payment, and it is designed in a way that easily joins with the current payment system that the merchant users. Even at its launch, Shopify had already integrated the app with their platform. Since then, Coinbase Commerce has added Magneto, OpenCart, PrestaShop, and WooCommerce. All the merchant needs to do is create an account and a non-custodial wallet to participate.
When the app originally launched, O’Brien said that the point of the app was to be used by crypto proponents as a minimum viable product. As the platform has progressed, Coinbase has added tons of features for merchants, which has opened the door for greater adoption. The merchants that join tend to stay involved, according to the product lead.
Even though there is an experimental Point-of-Sale feature on the app for merchants to use at their physical locations, the majority of the success of this product has been in the e-commerce world. So far, Coinbase Commerce is supporting the crypto industry, offering portfolio management tools and taxation services. Still, there are other companies interested as well, like “a grocery store in Madagascar,” says O’Brien.
Any payment accepted by a merchant through Coinbase Commerce goes into their wallet and remains in the same crypto asset that they accepted. Converting into fiat requires the merchant to perform a withdrawal and sell the assets. When the platform launched, it was compatible with BTC, BCH, LTC, and ETH. As of Monday, this week, the USDC stablecoin from Circle was added, though the update to Coinbase makes it possible to accept any ERC-20 token.
By adding USDC, Coinbase was able to use CREATE2, a feature from the Constantinople upgrade that increases the trust between customer and merchant with payments. The stablecoin’s greatest benefit is the lack of volatility, which ensures that customers know exactly what they are spending, and that merchants do not lose out on income.
With less volatility, Coinbase has noticed that users tend to spend more.
Interest in e-commerce has grown significantly in the crypto industry as users become more comfortable with spending their assets. This method of spending has led major platforms like Facebook and Telegram to be motivated to get involved with online payments as well.