In an interview with Bitcoin.com, bitcoin exchange and peer-to-peer market Paxful co-founders Ray Youssef and Artur Schaback said that the exchange is processing 8,000 bitcoin transactions per day as they ramp up their platform for bigger and better things.
Ray Youssef and Artur Schaback co-founded Paxful, formerly EasyBitz, in 2014. The goal in mind: make bitcoin easier for everyone including businesses and merchants. Paxful’s claim to fame though came in 2015 when the classifieds website Backpage.com had their credit card merchant services removed due to sex trafficking allegations. Since Backpage users could no longer post classified ads using credit cards, Backpage added bitcoin as a new alternative payment method. They included links to Paxful as a way to purchase bitcoin, causing what Paxful described as the “Backpage effect.”
Ever since, Paxful has been seeing a good amount of volume. Since their exchange is more of a market connecting buyers and sellers together with many unconventional payment methods such as gift cards, pre-paid credit cards (vanilla cards), and PayPal, they have been successful as not many other bitcoin exchanges offer these types of transactions; mainly due to fraud prevention.
In the interview which is embedded below, Paxful co-founders said that they are processing around 8,000 transactions per day. In the entire bitcoin network, we are seeing around 200,000 transactions per day total, which if Paxful claims are accurate that would be about 4% of the total network transactions being attributed to Paxful users.
This is a bold claim, which some are disputing. You can track the number of bitcoins transacted per week on Coin.Dance, which shows about 1500-2000 bitcoins are transacted per week on Paxful, which is 214-285 bitcoins per day. Paxful says that the reason their transaction count is so high is because of their userbase. The users who aren’t bitcoin savvy will typically have a $20 bitcoin transaction. However, instead of sending one transaction for $20, they may send it in pieces, $1 here, $1 there, creating many transactions for each single purchase.
Paxful recently launched the Pay with Paxful button, which Youssef and Schaback are hoping will help revolutionize the space. The button let’s merchants accept fiat currency and it gets converted into bitcoin on the back-end without the front-end user ever knowing the wiser. They said that in the past six months Paxful has processed $20 million in transactions using the button.
Of the transaction volume processed, Paxful also says that half of it comes from gift cards, and another 25% is cash. The rest is online wallets and credit/debit cards.
Paxful plans on launching an affiliate program soon, with early bird access becoming available in the next couple of weeks. In April of this year, they partnered with BitGo to secure their hot wallet.