Blockchain

Overstock.com Now Accepts Bitcoin as a Method of Payment, Coinbase Partners with BitMonet

Overstock had announced a few weeks back that they were considering accepting Bitcoin as a method of payment, but it was touted to take place only after six months or so. However, the company seems to have advanced operations by integrating with Coinbase to accept Bitcoin payments on 10th January, 2014. Now, users with Bitcoins can buy various products such as an XBox or even a Patio, off Overstock.

Coinbase was co-founded in June, 2012 by Brian Armstrong (CEO) and Fred Ehrsam with Mark Peter Davis as an investor. The company has received a total funding of $31.9 Mn from investors Alexis Ohanian, Y Combinator, Greg Kidd, Garry Tan, FundersClub, Union Square Ventures, Ribbit Capital, SV Angel, Red Swan, Interplay Ventures and Andreessen Horowitz.

This collaboration with Coinbase makes Overstock.com the largest online retailer to begin accepting the virtual currency. A number of Offline and Online Merchants had begun accepting Bitcoins last year, although none match the sheer size & reach of Overstock.

Offline Merchants (Physical)

Latin House Grill Burger & Taco Bar: Miami’s first restaurant to begin accepting Bitcoin payments. The celebrations kicked off with a happy hour this past Friday.

EVR “gastro lounge”: In April, EVR became the first brick and mortar location to accept Bitcoin in Manhattan. Owner Alex Likhtenstein cites the low 1% processing fee as an advantage over traditional 3.5% fee charged by credit card processors.

Lamborghini Newport Beach: On its blog, car dealership Lamborghini Newport Beach recently announced that the payment for a Tesla Model S had been made with Bitcoins. “That’s right, an electronic currency was used to purchased a fully electric vehicle.”  The car would have cost around 55 Bitcoins as the price was around $1,150 at the time of sale.

Room 77: Joerg Platzer, a bar owner in Kreuzberg Berlin began accepting Bitcoin payments in April 2013.

Merchant Websites (Online ones) : 

WordPress.com: WordPress has been accepting bitcoins since November 2012. WordPress is a provider of a free and paid blog based website templates, plugins, etc.

OkCupid: In April 2013, OkCupid a social networking site with themes such as friendship and dating allows users to pay with bitcoins for some of the site’s bonus features.

Shopify: On 27th November 2013, Shopify announced that more than 75,000 merchants that are registered with their platform can start accepting Bitcoin payments. The integration is available through BitPay. It can be used along with other payment services such as PayPal & Shopify payments.

The Pirate Bay: Since April 2013, The Pirate Bay accepts Bitcoins as part of donations for the free torrent based service the site offers.

Mega.co.nz: Through Bitcoins users can upgrade their private packages of storage space since December 2012. The site offers users 50 GB of free private storage space.

Reddit: In February 2013, Reddit announced that they will be accepting Bitcoins as fee to their Reddit Gold Membership service. Reddit is a user generated news and entertainment site.

4chan.org:  The site introduced Bitcoin based premium subscriptions in December2012. The site is popular for its simple image based bulletin boards. Any unregistered user can post comments and share images.

Coinbase on January 9th, 2014 partnered with BitMonet (open source Bitcoin payment) to enable in-app Bitcoin transactions on Android device. They will be combining to release a Software Development Kit (SDK) that enables users to receive and send Bitcoins through their platform.

“The idea behind this SDK is to make it super simple for an Android developer to monetize virtually anything with bitcoin,” stated lead developer, Ankur Nandwani, BitMonet.  “Not only can they sell virtual goods with bitcoins, but they can sell physical goods, without asking the user to leave the app. The SDK also allows payments to be made in one click, without users having to sign in to Coinbase every time they wish to make a payment,” he added.

On August 1st 2013, Coinbase reached a milestone of 200,000 users. That was quickly followed in mid-October by the news that they had reached 300,000 users. In December 2013, there were more than 600,000 consumer Bitcoin wallets on Coinbase. It looks to me like Coinbase is definitely making strides in terms of becoming the 'PayPal of Bitcoin'.

Chiraag Patel

Chiraag Patel is a Senior Reporting Analyst and the Editor of Bitcoin and Virtual Currency channels at Lets Talk Payments. He is an engineer with deep interest in MMORPG, Virtual Banking, Game Currency and Virtual Cash. Chiraag enjoys Reading& Blogging with focus on New Innovation, Technology & Startups in the Payments Space.

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