BitPay and Coinbase Function Very Differently—Here's How
Bitcoin service provider BitPay is very similar to crypto exchange Coinbase, but their features and aims are different—here's how.
Sept. 1 2021, Published 10:40 a.m. ET
Bitcoin service provider BitPay and crypto exchange Coinbase entered the crypto scene around the same time. Offering similar services, these two service providers are the first exposure to crypto for many. BitPay and Coinbase are similar in some ways but also have some key differences.
Whereas BitPay is a Bitcoin payment processor, Coinbase is a fiat on-ramp exchange. Both offer their own wallet services for users to store and transfer their funds, and both offer crypto debit cards. Though they're not necessarily competitors, each is equipped with features that may give it advantages over the other.
As a Bitcoin payment processor, BitPay needed an easily accessible wallet
Launched in 2011, BitPay is the world's largest Bitcoin payment processor. With Bitcoin rearing its head and growing quickly, founders Tony Gallepi and Stephen Pair designed the platform to make it easier for merchants to accept Bitcoin as payment. BitPay, available in six continents, is used in various industries, including travel, casinos, and ticket and merchandise vending.
In contrast to the Coinbase wallet, where users have to create a Coinbase account for access, BitPay offers a downloadable application that can be used independently. BitPay wallet offers users the ability to create multiple wallets, protect their funds through encryption, easily track funds through their notification system, and spend crypto easily by turning it into fiat with the BitPay card.
BitPay also has a unique feature allowing users to buy store credits at retailers that do not accept crypto for payment.
Coinbase's simple vision is "to create an open financial system for the world"
Coinbase entered the crypto scene just a year after BitPay, in 2012, when it was founded by crypto enthusiasts Brian Armstrong and Fred Ehrsam. They agreed that cryptocurrency had the power to influence and impact three things: innovation, efficiency, and equal opportunity. Based on this, they formed Coinbase.
Coinbase functions as a pillar to creating, exposing, and providing access to open financial systems around the world. To date, Coinbase has supported roughly 30 million trades globally and is available in over 30 countries. Coinbase has pioneered the way in which users are made aware of crypto. Through its "Learn and Earn" resources, users can earn a cryptocurrency by learning about it.
Developments, innovations, and increased adoption
Both applications have some because they're U.S.-regulated, but continue to innovate their platforms. Even though BitPay and Coinbase have different aims and functions, they have similar values. They believe cryptocurrency is the future of finance and are constantly working to make their offerings more accessible to users.
With this goal in mind, BitPay has announced its integration with decentralized aggregator 1Inch to assist traders in finding the best prices for cryptocurrencies across all platforms. Meanwhile, Coinbase continues to upgrade its products and honor customer concerns—recently, it announced it's offering $100 in Bitcoin to users who mistakenly received an e-mail regarding a security alert.
Despite their higher-than-average transaction fees, BitPay and Coinbase provide users with seamless crypto interactions. The success of both platforms comes as a result of their security, ease of use, and extensive resources.