CoinPayments is a payment platform that supports over 65 different coins. Find out how CoinPayments works today in our review.
What Is CoinPayments?
CoinPayments is a Canadian cryptocurrency payment platform that accepts over 65 altcoins at a flat transaction fee of 0.50%. The payment platform is catered towards merchants or anyone who sells their services online.
In June 2017, CoinPayments made headlines for a bug that allowed thousands of dollars’ worth of Ripple (XRP) to be stolen from other users’ accounts. The issue is still ongoing as we speak. One investor claimed to have lost $700,000 USD worth of Ripple.
Today, CoinPayments integrates with a number of popular shopping carts used by eCommerce stores – including PrestaShop, Woo Commerce, Opencart, and Magento.
Another unique feature of CoinPayments is that you can “pay by name”. Each CoinPayments merchant has an address that looks like $CoinPayments. You send altcoins to that address to pay the merchant.
In addition to working with eCommerce businesses, CoinPayments offers a POS system that can be used to accept payments in person.
Today, CoinPayments claims to be “the first and largest payment processor of over 65 cryptocurrencies.” The platform is used by 234,500 vendors across 182 different countries.
It’s popular among businesses who want to accept cryptocurrencies, but don’t want to go through the process of individually accepting each currency. With CoinPayments, they can accept over 65 popular cryptocurrencies at once.
CoinPayments comes with all of the following features:
CoinPayments supports BitGo Instant, which makes bitcoin payments faster than usual.
Secured With BitGo:
The CoinPayments hot wallet is secured by BitGo, which means all of the company’s funds are protected by multisig technology.
You can “Vault” your coins, which means you set a required amount of time before being able to spend them. This locks your coins down securely.
Access your account, accept payments in person, and convert coins anywhere using the mobile apps available for Android and iOS.
US-based and Europe-based merchants can have fiat settlements directly to their bank accounts.
Auto Coin Conversion:
Some coins are available for auto conversion, so you avoid the hassle of moving funds around on your own.
Point Of Sale (POS):
CoinPayments has a simple POS interface that allows you to accept transactions in-person.
Store your coins in a secure online wallet.
Ripple Stolen From CoinPayments Accounts Due To Bug
In June 2017, CoinPayments made headlines for a devastating bug. Apparently, certain CoinPayments users found a bug that allowed them to withdraw Ripple from other users’ accounts. Some users lost thousands of dollars. One investor from Taiwan claimed to have lost 2.45 million XRP tokens – or about $700,000 USD.
It’s a big deal, and the issue is still unfolding. The CEO of CoinPayments issued a statement:
“We have done a full review of our systems and added additional checks and protections to make sure similar issues don’t occur in the future.”
In addition, CoinPayments claims they know exactly which users stole the Ripple. Surprisingly, these users weren’t hackers. They didn’t have to execute complex hacking techniques. Instead, they appear to have been average users who found a bug in the system:
“Their detailed personal information has been collected and they all have been contacted to return the funds immediately. We are in communication with some already and reclamation process has begun with the help of our lawyers.”
In the meantime, users have setup a Facebook group where they’re debating on forming a class action lawsuit. While the company is waiting for the thieves to return the lost Ripple, CoinPayments will dedicate 1/4 of their revenue directly to the affected users. All coins recovered will be evenly distributed among all affected accounts as those come in.
Many users are criticizing CoinPayments’ response to the hack. Specifically, CoinPayments added a memo to their statement saying,
“We would like to remind everyone that any coin stored for extended period should always be Vaulted.”
The “Vault” service is a free platform that helps users protect funds by locking them down for a certain period of time. Understandably, some users are seeing this as a “victim blaming” response. Making matters worse is that this was entirely the fault of CoinPayments: it was a bug in their system that allowed the leak to take place.
Many of the users who lost Ripple appear to have been using two factor authentication – something that would typically prevent a situation like this.
In any case, the issue is still ongoing.
CoinPayments Fees And Pricing
CoinPayments has a basic fee structure. Here’s how it works:
- Incoming Payments: 50%
- Commercial Deposits (Callback Addresses Created with the CoinPayments API): 50%
- Wallet Service: Personal deposits are free.
- Withdrawals: Coin transaction (Tx) fee.
Interestingly, CoinPayments currently subsidizes bitcoin withdrawals for customers, so you pay a flat transaction fee of 0.00020000 instead of the full transaction fee. This only applies to wallet withdrawals and does not apply to payments or commercial items.
You can view additional information about CoinPayments fees on their website.
CoinPayments is a popular cryptocurrency payment platform used by merchants around the world. You can accept payments online through the convenient address system, or you can accept payments in-person using the POS system. Mobile apps are also available for iOS and Android.
Obviously, CoinPayments is in a bit of turmoil at the moment due to the recent Ripple hack. However, the company claims to have patched the bug, and they’re working on compensating users as we speak.
To learn more about CoinPayments, or to start using the payment platform today, visit them online at CoinPayments.net.