San Francisco-based cryptocurrency exchange Coinbase has recently announced the launch of an open-source On-Chain Payments Protocol to its Coinbase Commerce product. With the introduction of this new protocol, Coinbase aims to revolutionize the payment experience for both merchants and customers by offering instant settlement, low fees, and broad asset support.
The Challenges Faced by Merchants and Consumers
For a long time, the volatility of cryptocurrencies and the complexities of the payment process have presented obstacles for merchants and consumers alike. Coinbase’s updated Commerce product aims to address these challenges and provide a more seamless and user-friendly payment experience.
“Our goal is to simplify and unify on-chain payments. By making the protocol open source, we encourage other payment processors and businesses to build upon it,” stated Coinbase in their announcement.
The Benefits of Coinbase’s On-Chain Payments Protocol for Merchants
The new On-Chain Payments Protocol offers significant advantages for merchants. With a single setup and easy integration, merchants can now facilitate on-chain transactions, enjoy volatility-free payments, benefit from low transaction fees, and receive instant settlement in hundreds of crypto assets.
The streamlined onboarding process and out-of-the-box integrations with platforms like WooCommerce, Primer, and Jumpseller make it incredibly convenient for merchants to start accepting cryptocurrency payments within minutes.
Enhancing the Payment Experience for Customers
The On-Chain Payments Protocol also aims to provide customers with a reliable and convenient payment experience. It supports multiple wallets and currencies, allowing customers to pay with their preferred wallet across the Base, Ethereum, and Polygon networks.
Furthermore, the protocol automatically converts the customer’s chosen currency to USDC at a guaranteed rate, simplifying accounting and operations for merchants. Real-time transaction validation ensures instant payment confirmation, eliminating any doubts or delays.
Seamless Checkout Experiences for Coinbase Users
With the introduction of the On-Chain Payments Protocol, Coinbase Commerce will also benefit Coinbase’s millions of verified users by enabling seamless checkout experiences for retail payments. The platform shares payment information directly with the user’s wallet, eliminating the need for manual data entry and reducing the potential for errors.
Recently, Coinbase has been actively expanding its range of products and services for crypto users. Last week, the platform announced support for Solana (SOL) and Avalanche (AVAX) perpetual futures contracts. It also launched native Bitcoin and Ethereum futures contracts for US retail traders.
However, Coinbase’s recent achievements have not come without their fair share of controversies. The platform is currently involved in an ongoing battle with the US Securities and Exchange Commission (SEC), accused of not meeting the requirements of being a security trading entity. Coinbase has refuted the claims, stating that its activities do not fall under the agency’s legal purview.
