nav
Business Operations Business Models

How Does BitPay Make Money (Business and Revenue Model)

The BitPay business model

BitPay logo
Here’s what you should know:
  • What is BitPay, and how does BitPay work?
  • How does BitPay make money?
  • Transaction Fees (from Merchants)
  • BitPay Card Fees
  • BitPay profit and revenue
  • What is the BitPay business and revenue model?
  • BitPay funding, net worth, and valuation
  • BitPay subsidiaries, acquisitions, and exits

How does BitPay make money? Well, here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the BitPay business and revenue model, how much BitPay makes per year, and how BitPay works.

What is BitPay, and how does BitPay work?

BitPay is a payment service provider that enables its merchants to accept payment in crypto.

Founded in 2011 by Tony Gallippi and Stephen Pair, BitPay has since facilitated more than 10 million transactions totaling more than $5+ billion in transactional volume since its founding back in 2011.

So, how does BitPay work? To use BitPay, you can first either download their mobile app on the Apple App Store or Google Play store; or visit their website and create a wallet.

Once you create a BitPay wallet, you can then buy crypto on their platform, from which you can hold it or trade it. Or you can spend your crypto like cash by shopping at thousands of partnering BitPay merchants by signing up for the BitPay Card.

BitPay App in Apple App Store | BitPay Business Model | How Does BitPay Make Money | How Does BitPay Work
Source: Apple App Store | BitPay

How does BitPay make money?

According to BitPay, BitPay has processed more than 10 million transactions totaling more than $5+ billion in transactional volume since its founding back in 2011.

So how does BitPay make money off of all these listings?

Below is a breakdown of how much money BitPay makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways of how BitPay makes money in 2022

BitPay has a revenue model that makes money in two (2) ways; transaction fees from merchants and BitPay Card fees.

#1. Transaction Fees (from Merchants)

BitPay makes most of its money by collecting a transaction fee from all of the payments they facilitate between their merchants and customers.

As noted above, BitPay has processed more than 10 million transactions totaling more than $5+ billion in transactional volume since its founding back in 2011. Of which, they take a 1% transaction fee for themselves on all of it.

How much are BitPay fees?

  • 1% transaction fee

Note: BitPay partners with thousands of merchants (companies and stores) that accept cryptocurrency – including Spotify, Uber, Lowe’s, and more.

#2. BitPay Card Fees

BitPay also makes money from additional fees they charge for the use of their card (or lack thereof).

While BitPay does not charge its customers for things like issuing the card or monthly fees, they do charge them for a number of other things – which you can see below.

BitPay Card fees:

  • ATM fee: $2.50 USD
  • Card replacement: $10 USD
  • International currency conversion: 3%
  • Inactivity fee: $5.00 per month after 90 days with no transactions
BitPay Card | BitPay Business Model | How Does BitPay Make Money | How Does BitPay Work
Source: BitPay

BitPay profit and revenue

BitPay has not released any official reports in regards to company earnings.

Note: Because BitPay is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the BitPay business and revenue model?

BitPay makes money through a few revenue models that they combine within their company, they are:

  • Fee for service (FFS) business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

BitPay funding, net worth, and valuation

BitPay’s Crunchbase profile shows BitPay has raised $74.3 million over 10 rounds and has a post-money valuation of $100 million to $500 million as of September 16, 2019.

BitPay subsidiaries, acquisitions, and exits

To date, BitPay has not made any acquisitions, investments, or exits.