How do Online Wallets Survive ??

[apoorvlathey]

There are many online wallets like Xapo and Coinbase that do not charge any transaction fees or they pay that fees by themselves. I want to know that how would they profit from paying for their user's transaction fees ?
If no fees is charged then the transaction take a much long time or even might get cancelled !

[unamis76]

Maybe they profit on ads? Or paid services...

[BitcoinHodler]

only by advertisement
a wallet like blockchain.info has two big ads on the bottom of the searches. and also a lot of small ads linking to sites like purse.io in the wallet page.

[Wendigo]

Well Xapo charges a 1% fee every time you buy Bitcoins and also the processing fees may depend on the payment method. Coinbase on the other hand charges 1% when you convert from Bitcoin to your local currency and vice versa. And for example Coinkite has advanced wallets targeted to businessmen and merchants that offer more features than the free basic wallets. In general every online wallet has a fee system and also charges more for upgraded plans if you need more flexibility for your business.

[iram1011]

Wallet such as Xapo and Coinbase can survive because they earn profit from their service such as buy/sell bitcoin instanly, bitcoin debit cards, bitcoin exchange or cold/secure storage.
They offer zero fee for bitcoin transaction to attract customer and also attract them to use their service.

I still prefer decentralized wallet though

I think that other way to earn is a commission (or a custom price USD / BTC) and some "partnership" with big customers that could start from 0 with btc and these service give a "key on hand" / full to start, packet for who doesn't know anything related to this "world".

Obviously the "navigated" user will prefer a "classic" wallet

[Madness]

Most of them by taking fees or by providing other services (other then storing your bitcoin in their wallet) , Blockchain in the other have ads as you can see when you login . (BTCJam , Purse.io etc ..)

[AST.teb]

Most of them by taking fees or by providing other services (other then storing your bitcoin in their wallet) , Blockchain in the other have ads as you can see when you login . (BTCJam , Purse.io etc ..)

blockchain.info already charge over transc but i think Xapo and coinbase have their profit over their credit cards because those cards and somehow overpriced to use

[Madness]

Most of them by taking fees or by providing other services (other then storing your bitcoin in their wallet) , Blockchain in the other have ads as you can see when you login . (BTCJam , Purse.io etc ..)

blockchain.info already charge over transc but i think Xapo and coinbase have their profit over their credit cards because those cards and somehow overpriced to use

Are you sure about that ? I mean aren't we supposed to see if they take anything in the transaction ID ? because I never see anything except the usual network fees .

[maku]

If you keep your money in Bank account then it is normal that Banks are using your money and conducting all kinds or manipulation with it.
They use it to invest, use it to finance their loans business. With bitcoin wallet you can't really  touch money of users, because it will shot on blockchain.
I guess the only way is to have other services beside wallet available and ads on their site.

[pocarime32]

I think their income is from ads, I agree with people here. Ads on online wallet must be very expensive imo, because many people will see it when open their wallet.

[torry28]

Online wallets are mostly preferred by people doing many transactions in a day... Becuase they are mobile and easy to use....

ANd in Bitcoin world , there are a whole lot of such people so yes easily..

[alyssa85]

There are many online wallets like Xapo and Coinbase that do not charge any transaction fees or they pay that fees by themselves. I want to know that how would they profit from paying for their user's transaction fees ?
If no fees is charged then the transaction take a much long time or even might get cancelled !

The fees on the Xapo pre-paid card are quite hefty. Don't know what it's like on the Coinbase card, but I imagine they charge. Plus Coinbase is linked to the Coinbase exchange, and they make money there through trading fees.

[FUBAR-BDHR]

There are many online wallets like Xapo and Coinbase that do not charge any transaction fees or they pay that fees by themselves. I want to know that how would they profit from paying for their user's transaction fees ?
If no fees is charged then the transaction take a much long time or even might get cancelled !

Exchanges like coinbase make money from the buy, sell, and exchange fees.  They can offer no fee transactions because of this.

[7788bitcoin]

Besides exchange fees, I think they charge you a fee if you are registered as a company using their services in your business transactions.

[Zuminest]

I think some online wallets earn money from open source projects and ads..
Android bitcoin wallet earns money from donations... blockchain.info earns from funds...


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[Quantus]

online wallets are for suckers.

[socks435]

I think they are survive because they are can accept to buy bitcoin to their website like on coinbase you can buy bitcoin there using your bank account also in xapo they are offering debit card that can deposit money to buy bitcoins.. 10k satoshi is not high to pay for the fee for every transaction..

[twister]

online wallets are for suckers.

True that. Maybe its just bait to get them suckers in.

And they also pool transactions, since they don't provide you private keys, they pool all the transactions made in a while and send them together.

[btvGainer]

only by advertisement
a wallet like blockchain.info has two big ads on the bottom of the searches. and also a lot of small ads linking to sites like purse.io in the wallet page.

Blockchain.info does charge a fee for each transaction.The income from ads is additional for them and given the cost of running a wallet,I think it is fair they charge a fee

[Genius Einstein]

because of bitcoin online wallets are able to survive. i predict that when bitcoin dies out that the wallets will go to as they depend on the internet currency