How do Online Wallets Survive ??

[KenR]

You have incorrect information .Online Wallets charge users for every transaction they make.You can't even set a custom transaction fees unlike core in most of the cases .Maybe you never noticed because the amount is next to negligible which won't bother you.Online Wallets don't pay your transaction fees,you do.They charge you more than Core by providing an assurity to have your transactions confirmed on High/Medium priority.

[pedrog]

Xapo and Coinbase are also exchanges, and they provide other services as debit cards.

Free transactions only between their users, if you send to outside their system you will pay a fee.

Wallets like Blockchain.info rely on publicity, and you are the one setting the fee, you have full control.

[Brad Pitt]

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 !

Ones like blockchain.info make money from ads though it wouldn't surprise me if they start charging fees at some point in the future. They've had big investments from companies so they'll probably start wanting to see their money back at some point and its got to come from somewhere.

[Ardenyham]

These usually take the fee and subtract it from the transaction value at least blockchain.info does that, If a wallet doesn't then I think it's suspicious even in itself, Since they all pay fees to the network to complete the transaction and are supposedly not using your funds in some investments or projects.

[FlyingSaucer]

The companies running web wallets charge fees when converting from Bitcoin to local currencies and for premium accounts with more features. Some of them offer Bitcoin debit cards which net them even more profit in fees tied to the cards.

[countryfree]

They survive just the same way companies offering free email services. Their idea is to have a large audience interested in a precise subject. When you have that, you'll see opportunities to monetize your website, by selling services or acting like exchanges. I don't think companies behind online wallets are making big money right now, but they have a future, as less and less people will download the whole blockchain, which is getting too big.

[avikz]

Those who do not charge transaction fees, they mainly earn from the advertising revenue and also from the bitcoin exchange. Good amount of traffic can turn in to a very very good income.

If you want to buy bitcoin using xapo or coinbase, you will have to pay a currency exchange fees. That goes to their income.

[Kakmakr]

There might also be a hidden agenda behind this, as we have seen with other companies coming into this environment and supporting Bitcoin and once they acquired enough users they shift to a fiat based business model and only supporting Bitcoin as a hidden feature. The free or cheap fees are funded by the secondary features on the exchange or extra services side. You get cross subsidizing from one service to another, and remember the Blockchain transactions are only done, once you go on-chain and then a trasaction fee are charged. ^hmmmmm^

[tiggytomb]

Advertisements and fees, Coinbase for example I know they have a lot of merchants setup and I am pretty sure they would be getting some kind of fees from them and also when bitcoin is traded they would receive a % in fees.

[Boosterious]

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 !

they pay small fee from small transaction,each wallet have standard transaction big and small,and i'm sure if people sent big amount of transaction,then wallet will take some fee from that user. and for coinbase,they will stay alive becuase they have exchange,they got profit from it. just my opinion.

[rinhunter]

if Blockchain.info may receive from the transaction fees.
as if from an ad, I didn't see any ads on this website and there are some wallet also received through donations from users.

[NeuroticFish]

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.

Actually I believe you are incorrect.
I will give you as example my wallet on Bit-X. The current amount shown is completely unrelated to what I actually have there. But also when I withdraw, I don't actually know from which wallets they will actually send me my money.
Conclusions:
* online wallets can and will use your money for they needs as long as you keep money there.
* online wallets can and will optimize withdraws whenever possible to reduce as much as possible the fees they pay


So if they hire a few professional traders, they have your/our money to play with and there can be an awesome revenue, where the ads and such are only extra pennies.
And it's only one example that came into my mind.

[~Bitcoin~]

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 !

From what i remember they have fee to send bitcoin outside internal wallet addresses. I mean they dont take fee to send internal xapo to xapo or coinbase to coinbase address that mean they associate bitcoin address to you but keep record of your balance in database ratger than in real bitcoin address. So they dont have to pay fee for evvery internal transaction.

[lumeire]

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 !

From what i remember they have fee to send bitcoin outside internal wallet addresses. I mean they dont take fee to send internal xapo to xapo or coinbase to coinbase address that mean they associate bitcoin address to you but keep record of your balance in database ratger than in real bitcoin address. So they dont have to pay fee for evvery internal transaction.

Yes as far as I know they don't charge fees for that, they get their profits from trades, meaning USD to BTC and vice versa. You should be more curious how bitcoin 'savings' wallets like Magnr and HaoBTC stay up and profit from their business models, I mean considering this difficulty we're at.

[DimensionZ]

@Neurotic Fish But Bit-X is an exchange right? Their Bitcoin capital is constantly in circulation between the users as they are trading on the platform so it's normal for them to assign coins to you which weren't deposited by you initially when you are trying to withdraw later. While on simple Bitcoin wallets this shouldn't be happening theoretically because your funds aren't being used for investments behind the scenes like banks do. I may be incorrect in my reasoning though.

[RealPhotoshoper]

Advertisements and fees, Coinbase for example I know they have a lot of merchants setup and I am pretty sure they would be getting some kind of fees from them and also when bitcoin is traded they would receive a % in fees.

i'm also using coinbase,but i dont see they take any fee from my wallet,when i just sent all bitcoin from my wallet,it just go through all in,and my balance become zero,so how they take fee?

[European Central Bank]

They're in the business of attracting customers right now. How much does it cost them in fees. A few hundred dollars a week or month? Worth it to earn loyalty.

[bitdumper]

Few of the online web wallets have PAID MERCHANT/API SERVICE .
They might earn from that.
Block.io api has limit and a fee is applied above it.

[LCSociety]

Huge traffic = ad rev

The more popular pure online wallet services live or die based on ad revenue

Then of course you have providers like xapo, coinbase etc that generate revenue via transaction fees and the like

[Lutzow]

Few of the online web wallets have PAID MERCHANT/API SERVICE .
They might earn from that.
Block.io api has limit and a fee is applied above it.

Same thing goes with gourl where they offer api 'free' service. They profit from transaction fees upon withdrawing from your wallet.