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Bitcoin wallet provider Coinbase has launched a “tip” button to enable Coinbase users to make micropayments to Web-site owners.
San Francisco-based Coinbase says the button can be used to make one-click payments. The default amount is 300 bits, or about 10 cents this week. Senders can choose other amounts, Coinbase says.
So far, more than 30% of orders on Coinbase are for $1 or less, Coinbase says.
“One of the most exciting aspects of Bitcoin is that it enables new behaviors that aren’t possible with traditional payment networks,” Coinbase says in a blog post. “Traditional payment methods are generally too expensive to support micropayments. Bitcoin is the first open, interoperable payment network that enables small amounts of money to be sent frictionlessly anywhere in the world.”
Early adopters of the tip button include bloggers, podcasters and platforms like Adam Carolla, The Morning News, Zapchain, Startup Management and Haywire.
On the blog The Morning News, for example, the tip button appears at the bottom of a blog post, next to the social media sharing links. The button displays the number of tips made.
When clicked, a dialog box appears that displays who will receive the micropayment. It also displays options to use a Coinbase wallet or a Bitcoin address. Users must have a Coinbase account to use the service.
Bitcoin use is gaining ground. Recently, PayPal Inc.’s Braintree affiliate opted to accept Bitcoin, the most popular incarnation of digital currency. Merchants using Braintree’s new v.zero software development kit will be able to accept Bitcoin by opening an account with Coinbase Inc., a San Francisco-based startup that processes Bitcoin transactions for merchants and also provides Bitcoin wallets for consumers.
Square Inc. announced earlier in the year its Square Market online marketplace also would accept Bitcoin transactions. E-retailer Bitcoin Shop Inc. debuted in September and only accepts digital currencies, including Bitcoin, Litecoin, and Dogecoin. The Web site operates as an online marketplace much as eBay Inc. and Amazon.com Inc. do.
