Merchants utilising commerce solutions provided by one of the top U.S based cryptocurrency firm Coinbase can now accept a broader range of digital currencies, including the meme-inspired tokens Shiba Inu (SHIB) and Dogecoin (DOGE). As reported by Crypto Lists, the move is part of Coinbase’s efforts to develop products that will promote the widespread adoption of cryptocurrencies. Currently, there is two version of the popular American site – one called Coinbase Pro, for the more advanced users, and another one called Coinbase App, for the more simply interactions. A statement on the company blog explained that it was simply utilizing its existing connections for this purpose.
Coinbase Commerce Feature Update
Coinbase Commerce is regarded as a safe and simple way to make payments online. Coinbase introduced its managed commerce merchants earlier in the year, enabling instant payments between Coinbase users and merchants. However, because users had to pay fees for the transactions, the product did not have much success. In addition, merchants were shortchanged by price volatility when converting cryptocurrency to fiat. If you are looking for the cheapest possible ways to make deposits into a crypto site, check out our overview with 130 payment methods.
Payer Benefits of the Commerce Update
Thanks to the new update, existing Coinbase users will no longer incur additional fees when using their cryptocurrencies to pay merchants on Coinbase Commerce. In addition, such transactions will occur instantaneously with automatic currency conversion to ensure that the amount sent matches the amount received. The update provides a reality in which payers and merchants experience a seamless transaction.
Coinbase Commerce, a subsidiary of the Nasdaq-listed exchange Coinbase Global, announced that it is making cryptocurrency transactions more straightforward and accessible while also adding new cryptocurrencies as payment options as part of its goal to bring businesses and consumers together in the crypto-economy.
Instant and Free Payments
As part of its mission, Coinbase Commerce now enables instant and free payments from Coinbase users to Coinbase-managed commerce vendors by leveraging the new functionality. Using off-chain transactions, Coinbase’s exclusive access to both Coinbase customers as payers and merchants as payees enables instant, free payments.
Coinbase defines an off-chain transaction as an account-to-account transfer processed outside the blockchain via a separate channel, implying that they can offer this benefit to customers with Coinbase accounts.
Merchant Benefits of the Commerce Update
The firm noted that merchants concerned about price volatility would benefit from instant transactions and automatic currency conversions to ensure they receive the correct amount from customers. According to Coinbase, reducing friction and enhancing flexibility in the crypto payment process on both ends of the ecosystem is moving closer to widespread adoption and maximizing their brand’s network effect.
In response to the company’s excitement over the new functionality for the Robert Mondavi NFT store, Nathan Scherotter, Vice President of Direct-To-Consumer at Commerce client Constellation Brands, said: “Coinbase was the perfect partner for Robert Mondavi to launch our NFT project. The product, team, and infrastructure all worked together to make it possible to conduct smooth cryptocurrency transactions, automatic conversion, and simple integration without any hitches.”
According to Crypto Lists, without Coinbase’s Commerce product, they would not have been able to accept cryptocurrency for this project, and being able to provide instant and free payments is a massive win for the crypto world.
Support for More Crypto Assets
Coinbase’s Commerce platform now supports seven additional cryptocurrencies. Now, many crypto payment options are available to merchants and consumers. Many people have been requesting Coinbase to allow payments with additional cryptocurrencies, and the company is very excited to be able to fulfill those requests. The problem is the American rules and regulations, making it hard for U.S based businesses to add smaller cryptocurrencies that’s not classified as securities.
The total number of supported digital assets now stands at ten, with additional support for seven additional assets. Currently, the platform accepts BTC, SHIB, ETH, BCH, USDC, LTC, DAI, USDT, DOGE, and APE. Also, the platform accepts BTC, SHIB, ETH, BCH, USDC, LTC, DAI, USDT, DOGE, and APE. It will be up to the retailers to choose which cryptocurrencies they accept. The dollar equivalent can be obtained in minutes by either holding or using the auto-conversion feature. However, the auto-conversion function will only operate within the bounds that have been set for various currencies.
Why It is Important?
Coinbase’s mission is to facilitate connections between businesses and consumers in the cryptocurrency economy. Coinbase is getting closer to its end goal by seeking to make cryptocurrency transactions as simple and as widely available as possible. Building products that enable crypto as a new financial system is a significant part of their strategic plan. Coinbase Commerce upholds this pillar by facilitating secure and convenient methods of payment. The company is taking another step toward mainstream adoption and leveraging the network effect of its brand by removing friction and increasing flexibility in the crypto payment transaction on both sides of the ecosystem.
As Crypto Lists pointed out, Coinbase Commerce’s action came noticeably soon after DOGE and SHIB, along with several other crypto assets, was taken out of the Crypto Earn rewards program of well-known cryptocurrency exchange Crypto.com. Coinbase has continued to release updates to outperform payment processing giants such as BitPay, CoinGate, and Coinomi. Crypto Lists anticipates that the company will release additional Commerce updates later this year.