Coinbase has introduced a crypto payments framework for merchants, primarily through its Coinbase Commerce and Coinbase Payments platforms, designed to simplify and enhance onchain payment solutions. Coinbase Commerce is a platform that enables merchants to accept cryptocurrency payments seamlessly.
Key features include: Merchants can accept payments in cryptocurrencies like Bitcoin, Ethereum, DAI, Litecoin, Dogecoin, Bitcoin Cash, USD Coin (USDC), Tether USD, ApeCoin, and Shiba Inu, as well as MATIC and Wrapped Ether (WETH) on Polygon. Payments are instantly converted to USDC to mitigate volatility risks. Funds are received directly in the merchant’s wallet, ensuring fast, error-free transactions with real-time validation for immediate customer assurance.
A 1% transaction fee is charged, with no chargebacks, reducing operational costs compared to traditional payment methods. Offers simplified onboarding and pre-built integrations with platforms like WooCommerce, Shopify, Primer, and Jumpseller. Merchants can start accepting payments in minutes. In 2023, Coinbase updated Commerce with an open-source Onchain Payment Protocol, standardizing payments across Base, Ethereum, and Polygon networks for a seamless, reliable experience.
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Supports payments from customers worldwide, eliminating foreign exchange fees and enabling transactions via various wallets (e.g., Coinbase Wallet, MetaMask, Phantom). Announced on June 18, 2025, Coinbase Payments is a stablecoin-focused payment stack built for commerce platforms, with a significant partnership with Shopify. Designed for payment service providers (PSPs), marketplaces, and commerce platforms, it enables instant, 24/7 USDC payments globally without blockchain complexity.
It’s live with Shopify, allowing millions of merchants to accept USDC on Coinbase’s layer-2 network, Base. The platform abstracts blockchain complexities, offering a modular stack with APIs for authorization, capture, refunds, ledgering, and subscriptions. It uses open-source smart contracts for secure, scalable transactions.
Merchants face no additional setup, and payments settle in local fiat currency or USDC with zero fees. Shopify offers 1% cashback to USDC-paying customers in the U.S. (starting later in 2025). Developed with Shopify, this protocol supports features like delayed capture, tax finalization, and refunds, integrating seamlessly with existing order and fulfillment systems.
Initial rollout began with select Shopify merchants in June 2025, with broader access planned later in the year. In December 2024, Coinbase partnered with Triple-A, enabling Coinbase users to pay at Triple-A’s merchant network (e.g., fashion, luxury, travel, gaming), enhancing payment convenience.
Coinbase Business: Set to launch later in 2025, this platform will offer startups and small businesses a crypto operating account for payments, asset management, and automated workflows, further supporting merchant adoption.
Market Impact: Stablecoins processed $30 trillion in settlements last year, with 3x year-over-year growth, signaling rising demand. Over half of Fortune 500 companies are building onchain, and one-third of small businesses use crypto, underscoring the relevance of Coinbase’s framework.
Regulatory Considerations: Coinbase is not registered with the U.S. SEC or CFTC, and merchants are advised to consult advisors before adopting crypto payments due to market volatility and regulatory uncertainties.
Security: Coinbase Commerce exchange uses seed phrase recovery for secure transactions. Merchants can opt for self-managed accounts (non-custodial, using a 12-word seed phrase) or Coinbase-managed accounts.
Limitations: No sandbox/test environment is available for Commerce, and fiat withdrawals to business bank accounts are limited to Coinbase-managed plans.