In parts one and two, we discussed how we got involved with Bitcoin and accepting Bitcoin as a merchant.
Today, we’ll talk about what it takes to pay with Bitcoin, the vendors we researched and ultimately chose, and why.
Paying With Bitcoin
In order to pay with Bitcoin, a buyer must have a digital wallet… specifically, either a Virtual Wallet or a Client Side Wallet.
First, a few definitions.
Digital wallet – any electronic device that allows an individual to make electronic commerce transactions.
Virtual Wallet – an online wallet accessible from any browser based device. With this type of wallet, a buyer will really need to trust who he or she is doing business with. For the purpose of this post, we found two virtual wallets we’re willing to mention: BlockChain and Coinbase.
Client Side Wallet – a digital wallet stored on a device of the buyer’s choice. While we did review several providers located here, we did not find a wallet that we felt comfortable with.
After careful considerations, we chose a virtual wallet and Coinbase as that provider… and here’s why:
- They are based in the U.S. (San Francisco)
- They receive capital investment from Silicon Valley
- Their security features
- Their quick support responses
- And, ease of use (interface and payments)
In a nutshell, paying with Bitcoin using Coinbase is simple and works as follows:
- The buyer is presented with the BitPay interface
- Next, the buyer logs in to the Coinbase account and goes to the pay screen
- The buyer copies and pastes the payment address & price from the BitPay screen to the Coinbase screen
- The transaction is approved and confirmation is provided
- The buyer can download the purchased product
Paying with the Coinbase virtual wallet has been smooth and with no issues. The interface is very well thought out and easy to work with.
Remember, Bitcoin funds in any wallet are not insured like fiat currencies. Plus, the pricing is volatile.
Tune in soon for The Bitcoins are Coming! Part 4.