BitPay is a platform used for Bitcoin payment services. The company headquarters are in Atlanta, US. BitPay converts the payments received in Bitcoin to the currency of users’ choice. It reduces the risk of fraud or online payment thefts.
BitPay is a secure and fast method for the transaction of money globally. It is changing and revolutionizing the financial sector of industries. BitPay is operating in six different continents, making it one of the leading Bitcoin payment services in the world.
Every day thousands of payments of Bitcoins take place via BitPay. BitPay has a secure and impeccable system to the extent that fewer errors and problems occur during Bitcoin payments.
BitPay is a payment service provider company that accepts and transfers payments in bitcoins. Blockchain payment technology is the essence of BitPay, which allows users to transfer bitcoins and convert the digital payments in users’ choice currency. BitPay is very user-friendly and provides a personalized interface making it easy to use.
What is BitPay?
BitPay was founded by Stephen Pair and Tony Gallipi in 2011. It is a platform through which online users can make online payments in the form of digital currency. In the early days of online payment services, the number of frauds and risks was very high. BitPay solved these issues by providing a secured platform so that businesses can grow and generate higher revenues. It also allows cryptocurrency payments by reducing payment errors.
BitPay offers BitPay Wallet and BitPay Prepaid Card, allowing the users to spend, save and turn their digital currency into real currency in the form of dollars. BitPay generated $70 million in fundings in two rounds of venture capital funding.
Company Profile
Given below is BitPay’s company profile.
| Company Name | BitPay |
| Website | https://BitPay.com/ |
| Founded in | 2011 |
| Founders | Stephen Pair and Tony Gallippi |
| No. of Employees | 80+ |
| HQ | Atlanta, Georgia, USA |
| Business model | Bitcoin Payment Service |
| Products/Services | Online transfer and collection of Digital currency |
| Competitive Advantage | A large network, Low transaction costs, International presence |
| Funds raised | $70+ million |
| Competitors | Coinbase, Paxos, BitGo and Xapo |
How Does BitPay Work?
BitPay card is like a MasterCard or a prepaid card through which users can make payments anywhere in the world. BitPay card provides all services like MasterCard. Vendors and businesses accept payments in bitcoins and convert them into the currency of their choice by direct bank deposits. Customers can withdraw money at any ATM, pay bills at any shop or online and also transfer money. It has an EMV chip that provides extra security during transactions. Customers can convert bitcoins or other cryptocurrencies to dollars, euros, and pounds to shop.
Processing fees for every transaction through credit cards can vary from 2 to 3 %, depending upon the transaction. As BitPay allows users to accept payments in Bitcoin, it offers a 1% flat rate of transaction fee. Companies and businesses can get bank deposits without paying surplus charges on transactions.
BitPay also offers BitPay Wallet in addition to BitPay cards. The BitPay wallet app enables users to buy and spend bitcoins and convert them to real currency. Users can then use this currency for online transactions. This wallet supports several languages and also shows prices in 150 currencies.
What is BitPay Business Model?
BitPay business model consists of two structures; to accept and transfer payments in bitcoins and make bitcoin transactions. This business model is expanding day by day and is very popular among companies. These include FMCGs, internet companies, telecom companies, finance companies, law firms, and cybersecurity firms.
There is a high demand for B2B payments nowadays. Its importance is apparent from the fact that in 2018 even bitcoin dropped by 80%, BitPay transactions surge was at +255%. BitPay offers a flat 1% fee and settles in 2 to 3 days, whereas other international wires require 4 to 6 days and charge fees at 3% – 4%. It is why BitPay is way cheaper, faster, and secure than other wires. Big tech firms are now focusing on developing similar platforms after seeing the success of BitPay. Many businesses like construction giants, real estate giants, FMCGs, importers or exporters, technology giants, professional services firms, and many others are using and preferring to accept payments in bitcoins through BitPay.
The estimated worth of the global B2B industry in 2021 is whooping $150 trillion and expected to rise to $218 trillion in 2022 as the technology advances, thereby expanding the businesses around the globe. Although it is not cheap right now and growing slowly, its importance keeps growing in the world’s economy. Bitcoin is a doorway to the future of payment infrastructure by providing the cheapest and secure way of transactions. It is visible that the B2B segment in BitPay’s business is exponentially growing.
How Does BitPay Make Money?
BitPay makes money by these methods, which are listed below:
Processing Fees
The charging fee defined by BitPay is 1% for the BitPay merchants. There are no such extra charges or limitations while transferring money or collecting it. BitPay charges 1% of the fee, whether that amount is in thousands or millions of dollars. Either fund get transferred in bitcoin or standard currency in the bank.
Monthly Subscription
BitPay also offers a monthly subscription system in which businesses and customers can do transactions under a specific limit, which is free of cost.
Network Cost
BitPay charges data miners the amount of network cost, which depends on the use of the network. The charges vary on the usage of the network. It can be cheaper to some miners and costly to some.
What are BitPay Features?
There are several BitPay features which are as follows
- National Currency Settlement
- Direct Bank Deposit
- Mobile Optimization
- Payment Protocol Implementation
- Cryptographically Secure API
- Invoicing in 40 Languages
- Pricing in 150 Currencies
- URI and QR code invoices
- Ledger Payment Tracking
- Cross-Standard Bitcoin Wallet Compatibility
- Direct POS Integrations
- Web-based Checkout
- Billing Plugins
- Shopping Cart Plugins
- Multi-User Support
- Mobile Point of Sale App
- Hosted Integrations
- Email Invoicing
- Direct Bitcoin Refunds
- Payment Buttons and Hosted Checkout
- Embeddable Invoices
- Email, Mobile and Server Payment Notifications
- Custom Transaction Speed Setting Options
What are the Advantages of BitPay?
There are several advantages of BitPay. BitPay allows businesses to accept bills across any town, district, or city. Customers can transfer online payments at checkouts. The most beneficial advantage is that the subscriber of BitPay can pay or receive any amount from any part of the world in no time. It is called a borderless transaction. BitPay is a non-conventional payment method. It allows its users to pay securely through PC, laptops, or mobiles.
As Bitcoin is shaping the payment services, it is a top choice among many businesses and customers worldwide. Thus, companies that sell products and services online prefer to shift their payment methods to digital currency.
Businesses and their respective users both will get bank deposits in terms of their preferred currency. The processing fees could go up to a maximum of 4%. However, BitPay applies a flat 1% rate to transactions regardless of the amount. There are no monthly or annual interest charges related to the savings in the BitPay wallet app. It is easy for users to store their digital money in a wallet which acts as a real-time wallet. Real currency can be converted into digital currency and can be used to pay bills while purchasing something.
The other benefit of BitPay is that it reduces the risk of fraud and identity theft. BitPay does not require any sensitive information of merchants and their customers because there are no cards to charge.
Conclusion
BitPay is bridging the gap between real and virtual currencies. It is re-shaping the payment methods which are in use for so long. As the companies and businesses invest heavily in digital currency, new platforms like BitPay will arise to assist in currency transfers.
BitPay is leading the race of platforms that provide these bitcoin services. In 2018, transactions worth $1 billion went through BitPay. BitPay also made a record of the lowest transaction errors. Due to this, BitPay’s market share rose exponentially. More companies are now working with BitPay and funding in it.
BitPay generated $70million in funds. The market value also increased. Companies, businesses, and sole investors are investing and funding in BitPay. These funds will be used in research and development to provide much better facilities and service while minimizing the problems.
The future looks bright for BitPay as the use of bitcoin and cryptocurrencies is prevalent throughout the world. It provides a secure system and easy to use user interface, which are the primary success factors in any online payment. BitPay has all the attributes to handle worldwide payments.
