Wednesday, January 30, 2013

A Second Look at OKPAY, Bitcoin's Largest Payment Processor


In November of 2011, I announced the arrival of OKPAY onto the Bitcoin scene, which at the time was seen as a huge step toward the consumer popularisation of Bitcoin. OKPAY was, and still is, the first well-established payment processor to integrate Bitcoin into their services. Since the original announcement, OKPAY has continued to increase in popularity, becoming one of the top 10,000 sites on the Internet, and hence a member of our prestigious Bitcoin Ladder. OKPAY is also one of the top 1700 sites in Russia.

Its competitors from within the Bitcoin community, BitPay, WalletBit, and MtGox have obviously kept the pressure on OKPAY to remain competitive, and OKPAY has done just that by recently dropping their BTC to USD conversion fee to 2.50% from the 3.00% that it was back in March of 2012. BitPay is currently charging 2.69%, while WalletBit charges 2.75%. Mt.Gox is of course competitive with the straight BTC to USD conversions, but they also charge 2.50% on top of their trading fees for any other currency. OKPAY's 2.50% rate also holds for anyone wishing to withdraw their BTC proceeds via the OKPAY MasterCard debit card.

Uniquely, OKPAY has also aligned itself with two of the major Bitcoin exchanges, Mt.Gox and BTC-E, allowing users to withdraw funds from the exchanges to their OKPAY accounts, and ensuring OKPAY gets the best possible Bitcoin exchange rate.

OKPAY's service has drawn in hundreds of thousands of users, thus giving them an advantage through economies of scale, something BitPay, WalletBit, and MtGox may find difficult with which to compete, though they're obviously doing a great job of staying competitive, themselves.

The beauty of these payment processors is the fact that they allow a merchant to accept Bitcoins with zero risk, with fees very much competitive with, if not lower than, those of PayPal, Visa, and MasterCard. Add in the absolute zero chance of chargebacks, and you wonder why there are any merchants out there that are not willing to accept Bitcoin in addition to the usual currencies.

As always, it's exciting to see the Bitcoin payment processor space continue to grow with the Bitcoin economy, inevitably forcing traditional payment processors (*cough* PayPal *cough*) to either get with the times or potentially lose significant business.

17 comments:

  1. How many merchants does OKPay have signed up specifically for bitcoin processing? How many bitcoin transactions have they processed so far?

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  2. This is a bit misleading because there is an additional 1% charge for most currencies on top of 2.5% at OKPAY. This is effectively 3.5%.

    WalletBit on the other hand is only 2.75% (0.89%+1.89%) for all 42 of its supported currencies. This means WalletBit is still the most affordable way to accept Bitcoins worldwide. www.walletbit.com/pricing

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    Replies
    1. You are not quite right. You're talking about a specific case of a wire withdrawal which is just 1%, but in other cases, such as vithdrawing via OKPAY Mastercard debit card, it's 0% charge.

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    2. When you working with OKPAY, you also get their brand and name, that you and your clients can trust.
      Any other small companies can disappear with all your money :)

      Delete
  3. Do any of these processors allow credit card payments as well? What I'd like is a solution where I can accept credit cards as well as bitcoin, and where I get paid in bitcoin from the processor. (Potentially after a long delay to remove chargeback risk in case of cc payments)

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    Replies
    1. OKPAY allow credit card processing via LiqPay
      But LiqPay payment pages are only in Russian D:

      Delete
  4. It is written everywhere that they have over 10 000 merchants, though I can not tell for sure if they all accept bitcoins.

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  5. I know that credit card payments are not available in OKPAY system. Point is that OKPAY payments are non-reversible, whereas Visa or Mastercard money can be refunded at any moment by several reasons. Besides, OKPAY provides many more account loading options available here: https://www.okpay.com/en/account/ope...sit/index.html
    Good bye

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  6. I don't know where you heard Mt.Gox is charging 2.5% on top of their conversion fee for anything other than USD. I contacted them and they said they charge 2.5 EUR for wire-transfer withdrawals in EUR.

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    Replies
    1. Click on the "2.50%" in the article and scroll down to the second last question:

      "Q. Are there any other fees charged when trading in multi-currency?

      A. No. However, please be advised that there is a 2.5% premium when a trade involves orders in different currencies."

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  7. What OKPay needs to grow, is more affiliate programs that offer it as a payout option. New users might be reluctant to try a new system and transfer money into the system, but once they learn they can get paid in OKPay funds and spend them like they would spend Paxum or Redpass funds (using their Mastercard), they usually are more open to the idea.

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  8. DO NOT USE OKPay. I sent them $6,000 of company funds to load onto an exchange and they proceeded to hold the funds and ask for more documentation. I provided the requested documentation and they stopped responding.

    I repeat - DO NOT USE OKPay. They are SCAMMERS and will make up reasons to hold your funds.

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  9. OKPAY это гнойные пидарасы. Послал им 250$, чтобы вывести в Яндекс.Деньги потратил на конвертации. Потом оказалось что вывод в Яндекс.Деньги не работает. Ок, я сделал виртуальную карту и за это они сняли 15$. Теперь я хочу пополнить эту виртуальную карту и они пытаются снять 75$. ОНИ ОХУЕЛИ!!

    OKPAY is festering motherfuckers. Sent them $ 250 to bring in Yandex.Money spent on the conversion. Then it turned out that the conclusion in the Yandex.Money does not work. Ok, I made a virtual card and for that they took $ 15. Now I want to fill this virtual card and they are trying to remove the $ 75. THEY ohueli!

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  10. okpay doesn'y handle funds for US merchants! Worthless, unless you live in Russia! Shouldn't the site be in russian then?

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  11. This comment has been removed by the author.

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  12. DO NOT USE OKPay, they are complete garbage! Here's Why:

    #1. They will take forever to deposit your funds in their OKPay account ("Wallet"). When you transfer money to them from your normal bank account (national transfers/normal regular bank transfers) it should be immediate. Noooo, on OKPay they make you wait at least 3 days. It's quicker to transfer money internationally to another bank account than to transfer money nationally to OKPay. All this waiting adds up to crpyto-currency prices moving against you, making your profits less and less.

    #2. If anything goes wrong and they put your money on "Hold" add another 1-2 days to before the money is released back in to your "Wallet" - Because a moderator from OKPay has to manually reset it. Everything is manual with OKPay, you wouldn't think they're an Online Business(tm) but some physical brick-and-mortar business from the 1900s. - Pathetic!

    #3. OKPay secretly works with banks to stop you from buying crypto-currencies. I tried to transfer money to BTC-e from OKPay, they put my money on 'Hold' then sent me a message a day later stating: because of my bank's new policy on crypto-currencies I'm not allowed to buy crypto with my own money! F**k Off! Who are [Barclays] my bank to tell me what and what I cannot buy? So, OKPay is too busy brown-nosing banks to be bothered with your payment requests. - All the while you wait and crypto-currencies prices continue to move against you.

    4#. They're really eager to steal nickel-and-dimes from your account. For example: When you go to pay someone (e.g. BTC-e in USD), if you're funds are in a different currency, they won't display the maximum amount you must enter to get ALL your funds transferred to USD, no, instead you have to manually keep guessing the conversion total. - Eventually, you'll get some money across but there will always be a few cents remaining in your OKPay account. - They leave calculation to you do to manually, so essentially you leave a few cents for OKPay to keep forever.

    #5. Don't use OKPay, they're a garbage and incredibly sloooooow payment service.

    They finally transferred my money to where I wanted it but in total it took SEVEN WHOLE DAYS!!!

    As I said before, it would have been easier if I had physically taken cash and given it to where I wanted it to go in the first place. - Completely unacceptable and very poor example of an online payment provider.

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    Replies
    1. So true. And you forgot to mention all the stinky penalty fees they tack on for basically everything. They have card "dormancy" fees that range from $10 to $25, an extremely annoying "pin-replacement" fee if you forget your PIN ($15)... lol really??; and for starters you have to pay big bucks just to get the darn card. If you hate plastic and want a virtual card you are screwed because it's going to cost you an eye ($70/yr). Even if you decide to close out your card account with them because it sucks, it will translate into yet another $15 fee. All this not mentioning all the other fees they have for basically everything you do with the card, like withdrawing money, etc. I was going to get one but now I realize [NOT]OKCard is run by a bunch greedy business people that just want to get rich quick on your behalf. Here's their OKPAY Card Fees page: https://www.okpay.com/ja/services/debit-card/fees.html

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