8Pay is a crypto payment solution like no other. Designed for B2B, B2C and P2P, it enables one-shot and recurring payments to be created and settled quickly – all controlled in a permissionless manner via smart contracts. There are several key differences between 8Pay and current merchant payment solutions. To demonstrate how 8Pay fits into the crypto payment ecosystem, and what differentiates it from the market leaders, we’ve undertaken a competitor comparison. Join us as we consider the strengths and weaknesses of Coinbase and BitPay’s crypto payment solutions, before finishing with a look at the features that make 8Pay different.

Coinbase Commerce

Launched in February 2018, Coinbase Commerce is a crypto payment solution provided by leading US cryptocurrency broker and exchange Coinbase. It builds upon the trust and network effects of the Coinbase brand, leveraging these to deliver a product that allows merchants to accept five cryptocurrencies as payment. Because funds are collected in a user-controlled wallet, Coinbase does not have access to the merchant’s funds.

Coinbase Commerce can be integrated into checkout, and getting started is simple, with just an email address and phone number required. Thereafter, merchants can accept payment in BTC, BCH, ETH, LTC, and USDC. There’s a Coinbase Commerce plugin available for popular ecommerce solutions like Shopify and WooCommerce. In addition, Coinbase levies no fees over and above those charged by the crypto network in question. More than 2,000 merchants have already begun Coinbase Commerce, making it the second most popular non-custodial crypto payment solution on the market.

Pros

• Quick setup (~4 mins) and easy integration
• Zero fees
• 5 cryptos supported including USDC stablecoin
• Integrates with popular ecommerce modules
• API, webhooks and customized payment buttons
• Hosted checkout pages available

Cons

• Limited range of cryptocurrencies
• Unsuited to recurring payments
• Merchant accounts susceptible to suspension and closure by Coinbase

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BitPay

Having processed over $1 billion in crypto payments in 2018, BitPay is the runaway market leader by some distance. Since its inception in 2011, the company has built up a reputation as a trusted and knowledgeable payment specialist that is a veritable giant of the cryptoconomy. BitPay enables merchants to accept payment in BTC or BCH, for which it charges a flat 1% fee. Payment buttons can be integrated into the merchant’s website. Bitpay invoices can be emailed to vendors and customers, while PoS software enables BitPay to be used in store to make crypto payments on smartphone or tablet.

BitPay’s non-custodial wallet ensures merchants control their funds at all times. Moreover, merchants are given the option of having payment settled in their local fiat currency directly into their bank account. The service is available in 38 countries, with BitPay hedging the risk associated with cyptocurrency’s volatility, giving the merchant peace of mind that they will not lose out on the deal. In addition to bank deposit, merchants can elect to have the BTC or BCH payment converted to a stablecoin such as PAX, USDC or GUSD.

BitPay’s flexibility, ease of integration and subscription billing option are among its many benefits, but the service has its drawbacks too. For one thing, as a US-registered company, BitPay won’t partner with companies based in countries that are subject to US sanctions, for instance, and is unavailable in countries that are hostile to cryptocurrency. As such, for all BitPay’s convenience, like Coinbase Commerce it is a permissioned service.

Pros

• Trusted company used by thousands of merchants
• BTC specialist, established in 2011
• Accepts BTC and BCH and offers stablecoin settlement
• Optional bank settlement in 38 countries
• Provides instant hedging against crypto volatility
• Subscription payment option
• Non-custodial wallet

Cons

• Limited selection of cryptos accepted (BTC and BCH)
• Not a global payment solution due to US laws
• Some privacy concerns over use of BIP70 standard for invoicing

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8Pay

Having considered some of the advantages and disadvantages to Coinbase Commerce and BitPay, let’s see how 8Pay stacks up by way of comparison. Like the former solutions, 8Pay is non-custodial and provides easy integration at the point of sale. It also enables payment buttons to be embedded and invoices to be quickly created, issued and settled. 8Pay operates on the Ethereum network only, so cannot support assets that exist on other chains, such as BTC. Within the Ethereum ecosystem, however, 8Pay provides a great deal of flexibility, enabling payments to be sent and received in ETH (technically WETH, as used in systems such as MakerDAO), the native 8Pay token and other ERC20s including stablecoins such as DAI, TUSD and USDT.

One of the biggest differences between 8Pay’s solution and its competitors’ is in terms of payment types. 8Pay is designed to accept a broader range of payment types, giving it properties akin to those of a traditional fiat payment system such as PayPal or Venmo. While 8Pay can be used for single payments, such as for sending money to a friend or family member, it is particularly suited to subscriptions and on-demand payments. The latter service enables the user to authorize trusted accounts to debit funds from their wallet up to a maximum limit. The other key advantage that 8Pay has over the market leaders is that it is truly decentralized and permissionless. This means that merchants can use the service in confidence, knowing that their account will not be shuttered in any way. Moreover, 8Pay does not request or store any personal data: the user controls their funds and data at all times.

Pros

• Non-custodial and fully permissionless service
• Accepts a wide range of ERC20 tokens as well as ETH
• Zero fees for single payments and just 1% for subscriptions and on-demand payments
• Easy to integrate and simple to use

Cons

• Limited to Ethereum-based tokens

To learn more about 8Pay and its many payment applications, visit 8Pay.network or check out https://medium.com/8Pay