In a significant announcement on Thursday, November 16, leading cryptocurrency exchange Coinbase revealed its latest initiative – the Onchain Payment Protocol, an open-source solution designed to enhance the user experience on Coinbase Commerce.
This strategic move marks a pivotal step forward in Coinbase’s overarching vision of creating a payment ecosystem that is not only faster and more cost-effective but also globally accessible. Anchored in the innovative Onchain Payment Protocol, this update seeks to transform online transactions, much like the internet did with information dissemination, breaking down barriers and democratizing access.
Coinbase aims to extend this transformative impact to the realm of cryptocurrency, fostering broader access to financial services and facilitating seamless commerce. The newly updated Coinbase Commerce product addresses key challenges faced by merchants, including navigating crypto volatility and simplifying the complexities associated with crypto transactions.
By leveraging the Onchain Payment Protocol, Coinbase endeavors to provide a solution that ensures instant settlement, reduced fees, and expanded support for various assets, thereby enhancing the overall payment experience for both merchants and customers.
Central to this development is the introduction of the Onchain Payment Protocol, a universal standard conceived by Coinbase to unify and simplify onchain payments. This open-source solution aims to provide clarity, reliability, and a consistent user experience across different platforms and wallets. By making the protocol open source, Coinbase encourages other payment processors and businesses to contribute, fostering the development of accessible and user-friendly gateways to onchain payments.
Coinbase Commerce, already trusted by thousands of merchants globally for processing billions of dollars in onchain payments, seeks to make the experience even more seamless and user-friendly. The benefits of the new Onchain Payment Protocol extend to both merchants and customers, offering streamlined transactions with easy integration, low fees, and instant settlements in a variety of crypto assets.
For merchants, the protocol provides quick onboarding through platforms like WooCommerce, Primer, and Jumpseller. It also facilitates automatic conversion to USDC for volatility-free payments and supports various currencies on Base, Ethereum, and Polygon. The protocol ensures error-free, instant payments, thereby reducing decline rates and chargeback risks compared to traditional methods.
Customers, on the other hand, enjoy the flexibility of paying with their preferred wallet and currency across Base, Ethereum, and Polygon. Pre-configured payments eliminate the need for manual data entry, and Commerce guarantees effortless checkout for Coinbase’s verified users, with instant payment confirmation through real-time transaction validation. The introduction of the Onchain Payment Protocol by Coinbase Commerce is a significant stride towards achieving a more accessible and user-friendly future for onchain payments globally.
