BitPay is a payment service provider for cryptocurrencies like bitcoin. It is currently the largest in the world, covering merchants over 6 continents.
Tony Gallippi founded BitPay in 2011. It is based out of Atlanta, Georgia in the United States.
Within the first 2 years, BitPay secured over 10,000 merchants. After that, it has continued to grow rapidly as they accepted new cryptocurrencies and implemented new features on their platform.
In 2016, the BitPay Visa Prepaid Debit Card was introduced. In addition to features already described, this allowed people to make payments to any merchant accepting credit cards. All 50 American states support this feature.
How BitPay works and handles volatility
Cryptocurrencies have a reputation for being highly volatile, so just imagine this scenario. What would happen if the value of bitcoin dropped by 20% in an hour?
BitPay has a solution — it only allows for a 15-minute window for transactions. This short time eliminates the price volatility. In other words, this means that the exchange rate is guaranteed.
In addition, the use of more stable crypto coins is allowed. Because of this flexibility, the payment is less volatile.
There is a 1% fee on all transactions. The merchant’s bank account receives funds within 2 working days.
How you can pay in various cryptocurrencies
- Bitcoin — The world’s biggest and most famous cryptocurrency.
- Bitcoin Cash — a spin-off of bitcoin with an increased block size of 8mb to expedite the verification process.
- Gemini US Dollar — a stable coin that allows holders to transfer US dollars over the Ethereum network.
- Circle USD Coin — an ERC-20 token backed by American currency, running on the Ethereum network, similar to the Gemini US Dollar.
Which big companies use BitPay?
Many big companies use as an alternative payment option, including:
- Flight Centre
Microsoft allows you to buy movies, games and apps that are available in the Windows and Xbox stores. This is in addition to other regular forms of payment on their website, like using your credit card.
Amazon allows you to use bitcoin to buy products on their platform through a service called SpectroCoin. This allows you to buy an Amazon gift card. However, this can only be redeemed on an Amazon site hosted in the same region.
Corporate Traveller is a division of the Flight Centre Travel Group, the United Kingdom’s largest travel company. Corporate Traveller allows you to make crypto payments for flights around the world. Once you have made payment, it is immediately converted to GBP. After that, the funds go directly into the company’s bank account.