BitPay, Coinbase or Others: Can Anybody Replace Visa?

The issue of transition to decentralised payment networks was raised again last week. On June 1, Visa, which usually processes more than 150 mln transactions daily, suddenly failed. Millions of people in the UK and Europe were unable to pay for goods or services, and Visa payments were also disrupted for US residents.

Several hours later, the problem was solved, but the mere fact of widespread failure indicated the need for decentralized and stable alternative systems, where such incidents are simply impossible.

Below we present an overview of several pioneers, which have chances for becoming similar to a ‘crypto’ Visa or MasterCard. They don’t just offer a comprehensive solution for storing, paying or managing cryptocurrency, but also provide full-fledged tools for businesses. Even more important – transaction fees are three times lower or even non-existent compared to Visa’s 3 percent.


CEO: Tony Gallippi

Founded: 2011


Founded by Tony Gallippi and Stephen Pair in May 2011, BitPay became the first operator to work with Bitcoin. The development of this project began due to the need to create a fast, safe, and cheap way of paying for goods and services. According to the creators of BitPay, the aim of the platform is to become crypto equivalent of Apple’s Apple Pay payment system, which is reflected in the similarity of their names.

In 2017, BitPay processed more than $1 bln in Bitcoin payments. The next step for the company was developing a BitPay Visa debit card, which allows payment through POS-terminals, as well as deposits and withdrawals at ATMs.

Bitcoin holders can buy a card for $9.95. Funds can be deposited into the account directly from the Bitcoin wallet or through an authorized provider. While BitPay takes a payment fee of up to 1.9 percent, processing speeds are a significant drawback.

In order to increase the application’s reach and popularity, BitPay announced support for Bitcoin Cash in addition to other currencies in December 2017. While it may seem that the service has increased reliability, various rumors still persist around the application.

For example, last summer the Bitcoin community accused BitPay of fraud. The fact is that BitPay misled users, saying that it is necessary to activate the BTC1 client while refusing from Bitcoin Core. The reaction of Bitcoin Core supporters, including Peter Todd, Tuur Demeestr, Francis Pulio, John Carvalho, Rodolfo Nowak and others was immediate. All of them were negative about BitPay’s offer to use an alternative to Bitcoin Core. In particular, Peter Todd called the proposal fraudulent and encouraged other community members to participate in the proceedings. Programmer Eric Lombrozo appealed to his subscribers on Twitter to boycott any company supporting SegWit2x. On forums and in social networks around the web, an active discussion of the Bitpay offer continues.

Two weeks later, on December 24, BitPay confused users again when it announced it would raise its minimum transaction amount to $100 in a December statement. In just two days, the company changed the value back to $5, further surprising users.


CEO: Brian Armstrong

Founded: 2012


When it comes to reputation, it’s worth noting one big player which launched on Feb. 14. The Coinbase Commerce service comes from the Coinbase exchange, and allows merchants to accept payment in digital currencies with the funds directly credited to the wallet of the user, leaving them in full control over the account. Functionally, the Coinbase Commerce plug-in is very similar to the PayPal payment system, requiring a phone number and an email address only.

The product accepts payments in Bitcoin, Bitcoin Cash, Ethereum, and Litecoin, and can be integrated into a checkout process or used as a payment service on e-commerce platforms.

Coinbase has firmly established itself as a processing operator for businesses. For accepting payments in Bitcoin, merchants are not charged any commission, but for the conversion of funds the system retains a fee of 1 percent.

It seems like numerous guides and videos like “Nobody Likes Coinbase Fees” or “How to Avoid Coinbase Commission” are now in the past. But will the recent release will help Coinbase to “rehabilitate” itself for 4 percent fees charged for debit cards operations?


CEO: Steve Beauregard

Founded: 2013

HQ: Singapore

Before being publicly launched in 2013, GoCoin was developed by a single person for private purposes. Now it has become quite a popular digital currencies platform and offers a payment gateway for online and retail merchants to accept BTC, LTC, DASH and BCH transactions. It was one of the first platforms to introduce lower merchant fees – only 1 percent , which drops to 0 percent after transactions have exceeded $2,500 monthly.

The platform can be installed as a plugin and allows customers to pay with the digital currency of their choice along with USD, EUR, and GBP. Several methods can be employed, from payment apps to hosted forms or buttons.

Since 2013 over 500 mln transactions have been processed by GoCoin. What makes this platform promising is a big client base of 15,000 merchants globally, among which there are companies such as General Electric, Cozy Games, BitFury, and Tesla Motors.

It’s also known that GoCoin is supported by a number of industry leaders like Owen Van Natta, former Chief Operating Officer of Facebook, and Brock Pierce, Blockchain Capital founder.


CEO: Alex Alexandrov

Founded: 2013

HQ: Canada

CoinPayments began as the first multicoin payment processor in the world in August 2013. The platform focuses on creating an easy way for integrating a checkout system for a staggering 535 cryptocurrencies, including widely used ones such as BTC, ETH, LTC, and smaller alternatives like PinkCoin and Triggers. The company also offers a number of shopping cart plugins, as well as custom payment solutions and merchant tools.

The level of service and the number of options are impressive for both buyers and sellers. The developers did not limit themselves only to payment instruments, and built the platform into a lot of online stores. Crypto lovers have a choice of 16 categories of goods, including games for XBOX, clothes, beds for cats and even cannabis seeds. While making purchases is easy enough, it is not entirely clear how legal they are.

Another peculiar feature available for users is the PaybyName service, which may simplify the life of any cryptocurrency trader or investor. By creating an account, you get a single address that can be used to send or receive any supported coins.

Merchants are given one of the most favourable conditions in the market – simplified registration, customer support and fixed commissions of 0.5 percent.


CEO: Vitaliy Andrusevich

Founded: 2014


An “all-in-one” gateway to blockchain services, Coinsbank was founded in 2016 under a name of BIT-X. Initially, the BIT-X project had been conceived as a cryptocurrency prepaid cards service. After rebranding on August 15, 2016, Coinsbank become a full-fledged payment platform, and since then has been maintaining high standards in everything that is connected with exchanging or processing of cryptocurrencies. In spite of a relatively small choice of supported cryptocurrencies, the platform’s steady daily trading volume allows Coinsbank to hold a position in the top 10 cryptocurrency exchanges.

Perhaps, its high levels of security and user-friendly wallet service is more known than the above mentioned exchange. Analyst Roger Aitken compared its cold type storage with a bank’s deposit box:

“Think of this as being akin to a bank’s deposit box, with special access via two keys: one retained by the customer and the other by the bank. Here it’s worth explaining that in terms of the security aspects offered by CoinsBank, that without a user key “no external party” to the wallet is able compromise its security.

If, for example, someone hacked CoinsBank’s system – as was the case that befell Hong Kong bitcoin exchange Bitfinex back in August with the theft of over $60 mln Bitcoin – the former wallet cannot be bypassed/compromised as there is “no possibility” to initiate transactions or make movements from them without the user’s signature.”

Coinsbank revealed to Cointelegraph the information about the issue of cryptocurrency debit cards to be announced on the Blockchain cruise in September:

“Payment cards will be issued by the world’s largest card provider and will be available for ordering users soon. The cards will work with cryptocurrencies available on the service – LTC, BTC, ETH, XRP.”

Let’s see whether the commissions will be as low as the current fixed merchant service fee of 0.5 percent.


CEO: Hisyam Nasir

Founded: 2017

HQ: Malaysia

Other projects do not focus on exclusivity of services and rather aim for technological perfection. One of them is the GoByte Network, which is developing its own payment service and offers 0 percent fees for processing services inside the platform and non-cash payments.

The GoByte Pay module interacts directly with the blockchain, creating and executing transactions which are later confirmed by masternodes and miners for technically challenged merchants and consumers on desktop, web, and mobile. Being fast, secure and easy to use, GoByte Pay allows user to have multiple wallets in one account. While only the GBX coin is currently available for payments, developers promise to add new coins after the Pay module’s release in June.

The module is designed to solve the problem of a lack of adoption in retail stores by creating an API to help existing terminals easily connect to POS terminals. Along with InstandSend and free transactions, GoByte is planning to issue their own cryptocurrency debit cards, ATMs and POS terminals.

Visa and the conflicts of interests

A giant like Visa is a regular participant in conflicts with the aforementioned projects. In January 2018, Visa left users in Europe without debit cards. The order was sent to the payment platform WaveCrest, whose customers include several projects working with Bitcoin, including BitPay, TenX, Bitwala and Wirex. As a result many of them had to stop servicing non-US customers.

This year, a scandal erupted between Coinbase and Visa, based on erroneous withdrawals of users accounts.

Developers of cryptocurrencies continue to pursue the goal of monetization with the help of processing systems. To date, fees for depositing funds through credit cards are 3 percent. It seems that many projects creators these days try to put their startups in mobile applications, bypassing the issue of plastic cards, since now the use of NFC on smartphones allows customers to instantly pay for the purchases made by placing their phone next to the seller’s gadget. It could be much easier and more convenient to scan a QR code for mobile Bitcoin payments. Possibly in the near future, users will be able to completely opt out of QR in favor of NFC.

In summary, there are no grounds at the moment for thinking that someone would compose a strong competition for the Visa system. For a large number of people, functional convenience, reliability, and ease of use outweigh commission costs which are almost 3 times smaller.

It’s possible that one of the above solutions will earn a significant share of the cryptocurrency transactions, proving its security and developing positive relations with the necessary regulatory bodies. Meanwhile, against a background of ambiguous regulation in different jurisdictions, the future development of such projects remain difficult to predict.

Be the first to comment

Leave a Reply

Your email address will not be published.


Privacy Policy is committed to safeguarding your privacy. Contact us at if you have any questions or problems regarding the use of your Personal Data and we will gladly assist you.

By using this site or/and our services, you consent to the Processing of your Personal Data as described in this Privacy Policy.

Table of Contents

  1. Definitions used in this Policy
  2. Data protection principles we follow
  3. What rights do you have regarding your Personal Data
  4. What Personal Data we gather about you
  5. How we use your Personal Data
  6. Who else has access to your Personal Data
  7. How we secure your data
  8. Information about cookies
  9. Contact information


Personal Data – any information relating to an identified or identifiable natural person.
Processing – any operation or set of operations which is performed on Personal Data or on sets of Personal Data.
Data subject – a natural person whose Personal Data is being Processed.
Child – a natural person under 16 years of age.
We/us (either capitalized or not)

Data Protection Principles

We promise to follow the following data protection principles:

  • Processing is lawful, fair, transparent. Our Processing activities have lawful grounds. We always consider your rights before Processing Personal Data. We will provide you information regarding Processing upon request.
  • Processing is limited to the purpose. Our Processing activities fit the purpose for which Personal Data was gathered.
  • Processing is done with minimal data. We only gather and Process the minimal amount of Personal Data required for any purpose.
  • Processing is limited with a time period. We will not store your personal data for longer than needed.
  • We will do our best to ensure the accuracy of data.
  • We will do our best to ensure the integrity and confidentiality of data.

Data Subject’s rights

The Data Subject has the following rights:

  1. Right to information – meaning you have to right to know whether your Personal Data is being processed; what data is gathered, from where it is obtained and why and by whom it is processed.
  2. Right to access – meaning you have the right to access the data collected from/about you. This includes your right to request and obtain a copy of your Personal Data gathered.
  3. Right to rectification – meaning you have the right to request rectification or erasure of your Personal Data that is inaccurate or incomplete.
  4. Right to erasure – meaning in certain circumstances you can request for your Personal Data to be erased from our records.
  5. Right to restrict processing – meaning where certain conditions apply, you have the right to restrict the Processing of your Personal Data.
  6. Right to object to processing – meaning in certain cases you have the right to object to Processing of your Personal Data, for example in the case of direct marketing.
  7. Right to object to automated Processing – meaning you have the right to object to automated Processing, including profiling; and not to be subject to a decision based solely on automated Processing. This right you can exercise whenever there is an outcome of the profiling that produces legal effects concerning or significantly affecting you.
  8. Right to data portability – you have the right to obtain your Personal Data in a machine-readable format or if it is feasible, as a direct transfer from one Processor to another.
  9. Right to lodge a complaint – in the event that we refuse your request under the Rights of Access, we will provide you with a reason as to why. If you are not satisfied with the way your request has been handled please contact us.
  10. Right for the help of supervisory authority – meaning you have the right for the help of a supervisory authority and the right for other legal remedies such as claiming damages.
  11. Right to withdraw consent – you have the right withdraw any given consent for Processing of your Personal Data.

Data we gather

Information you have provided us with
This might be your e-mail address, name, billing address, home address etc – mainly information that is necessary for delivering you a product/service or to enhance your customer experience with us. We save the information you provide us with in order for you to comment or perform other activities on the website. This information includes, for example, your name and e-mail address.

Information automatically collected about you
This includes information that is automatically stored by cookies and other session tools. For example, your shopping cart information, your IP address, your shopping history (if there is any) etc. This information is used to improve your customer experience. When you use our services or look at the contents of our website, your activities may be logged.

Information from our partners
We gather information from our trusted partners with confirmation that they have legal grounds to share that information with us. This is either information you have provided them directly with or that they have gathered about you on other legal grounds. See the list of our partners here.

Publicly available information
We might gather information about you that is publicly available.

How we use your Personal Data

We use your Personal Data in order to:

  • provide our service to you. This includes for example registering your account; providing you with other products and services that you have requested; providing you with promotional items at your request and communicating with you in relation to those products and services; communicating and interacting with you; and notifying you of changes to any services.
  • enhance your customer experience;
  • fulfil an obligation under law or contract;

We use your Personal Data on legitimate grounds and/or with your Consent.

On the grounds of entering into a contract or fulfilling contractual obligations, we Process your Personal Data for the following purposes:

  • to identify you;
  • to provide you a service or to send/offer you a product;
  • to communicate either for sales or invoicing;

On the ground of legitimate interest, we Process your Personal Data for the following purposes:

  • to send you personalized offers* (from us and/or our carefully selected partners);
  • to administer and analyse our client base (purchasing behaviour and history) in order to improve the quality, variety, and availability of products/ services offered/provided;
  • to conduct questionnaires concerning client satisfaction;

As long as you have not informed us otherwise, we consider offering you products/services that are similar or same to your purchasing history/browsing behaviour to be our legitimate interest.

With your consent we Process your Personal Data for the following purposes:

  • to send you newsletters and campaign offers (from us and/or our carefully selected partners);
  • for other purposes we have asked your consent for;

We Process your Personal Data in order to fulfil obligation rising from law and/or use your Personal Data for options provided by law. We reserve the right to anonymise Personal Data gathered and to use any such data. We will use data outside the scope of this Policy only when it is anonymised. We save your billing information and other information gathered about you for as long as needed for accounting purposes or other obligations deriving from law, but not longer than 1 year.

We might process your Personal Data for additional purposes that are not mentioned here, but are compatible with the original purpose for which the data was gathered. To do this, we will ensure that:

  • the link between purposes, context and nature of Personal Data is suitable for further Processing;
  • the further Processing would not harm your interests and
  • there would be appropriate safeguard for Processing.

We will inform you of any further Processing and purposes.

Who else can access your Personal Data

We do not share your Personal Data with strangers. Personal Data about you is in some cases provided to our trusted partners in order to either make providing the service to you possible or to enhance your customer experience. We share your data with:

Our processing partners:


Our business partners:


Connected third parties:


We only work with Processing partners who are able to ensure adequate level of protection to your Personal Data. We disclose your Personal Data to third parties or public officials when we are legally obliged to do so. We might disclose your Personal Data to third parties if you have consented to it or if there are other legal grounds for it.

How we secure your data

We do our best to keep your Personal Data safe. We use safe protocols for communication and transferring data (such as HTTPS). We use anonymising and pseudonymising where suitable. We monitor our systems for possible vulnerabilities and attacks.

Even though we try our best we can not guarantee the security of information. However, we promise to notify suitable authorities of data breaches. We will also notify you if there is a threat to your rights or interests. We will do everything we reasonably can to prevent security breaches and to assist authorities should any breaches occur.

If you have an account with us, note that you have to keep your username and password secret.


We do not intend to collect or knowingly collect information from children. We do not target children with our services.

Cookies and other technologies we use

We use cookies and/or similar technologies to analyse customer behaviour, administer the website, track users’ movements, and to collect information about users. This is done in order to personalize and enhance your experience with us.

A cookie is a tiny text file stored on your computer. Cookies store information that is used to help make sites work. Only we can access the cookies created by our website. You can control your cookies at the browser level. Choosing to disable cookies may hinder your use of certain functions.

We use cookies for the following purposes:

  • Necessary cookies – these cookies are required for you to be able to use some important features on our website, such as logging in. These cookies don’t collect any personal information.
  • Functionality cookies – these cookies provide functionality that makes using our service more convenient and makes providing more personalised features possible. For example, they might remember your name and e-mail in comment forms so you don’t have to re-enter this information next time when commenting.
  • Analytics cookies – these cookies are used to track the use and performance of our website and services
  • Advertising cookies – these cookies are used to deliver advertisements that are relevant to you and to your interests. In addition, they are used to limit the number of times you see an advertisement. They are usually placed to the website by advertising networks with the website operator’s permission. These cookies remember that you have visited a website and this information is shared with other organisations such as advertisers. Often targeting or advertising cookies will be linked to site functionality provided by the other organisation.

You can remove cookies stored in your computer via your browser settings. Alternatively, you can control some 3rd party cookies by using a privacy enhancement platform such as or For more information about cookies, visit

We use Google Analytics to measure traffic on our website. Google has their own Privacy Policy which you can review here. If you’d like to opt out of tracking by Google Analytics, visit the Google Analytics opt-out page.

Read more about cookies on our Cookie Policy

Contact Information


Changes to this Privacy Policy

We reserve the right to make change to this Privacy Policy.

You can configure your Internet browser, by changing its options, to stop accepting cookies completely or to prompt you before accepting a cookie from the website you visit. If you do not accept cookies, however, you may not be able to use all portions of the WideBitcoin Websites or all functionality of the Services.

Please note that disabling these technologies may interfere with the performance and features of the Services.

You may also disable cookies on the WideBitcoin Sites by modifying your settings here:

Visitor comments may be checked through an automated spam detection service.

Last Update: May 25, 2018