vs CoinsPaidhead-to-head

PYMSTR vs CoinsPaid.

Hacked twice. $44.5M lost. Still custodial.

//CoinsPaid reviewindependent assessment

CoinsPaid is the biggest name in iGaming crypto payments: a full-service custodial gateway with an OTC desk, business wallet, and an established operator client base. The catch is the architecture. CoinsPaid holds merchant funds in pooled custodial wallets, was hacked for $37.3M in July 2023 (Lazarus Group) and another $7.5M in January 2024, and its 0.5-1.5% headline rate roughly doubles once conversion spreads, withdrawal fees, and inactivity charges are counted.

+ Pros

Established iGaming track record

CoinsPaid has processed for iGaming operators for years and supports gambling explicitly, which most card-first crypto processors (BitPay, Coinbase) do not. For operators who want a custodial full-service provider, it is the incumbent choice.

Full-service product suite

OTC desk, business wallet, merchant dashboard, and multi-token acceptance with built-in conversion. Operators who want one custodial vendor for acceptance, conversion, and treasury get all of it in one contract.

Competitive headline rates at volume

The 0.5-1.5% volume-based transaction rate undercuts card-rail alternatives for high-risk verticals, and multi-token support widens what customers can pay with, at the cost of conversion spreads on every non-stablecoin leg.

− Cons

Hacked twice: $44.5M in losses

$37.3M stolen in July 2023 by the Lazarus Group via social engineering, then another $7.5M in January 2024. The stolen funds were customer deposits sitting in CoinsPaid custody, and the root cause is the custodial pooling itself. PYMSTR is non-custodial: funds settle directly to your wallet, so there is no pool to drain.

Hidden fees roughly double the headline rate

The 0.5-1.5% rate becomes roughly 2-3.5% all-in after the 0.3-0.8% conversion spread, 1-3% fiat withdrawal fees, and a $25/month inactivity fee after 90 days of dormancy. PYMSTR charges 1% flat with no spreads, no withdrawal fees, and no monthly charges.

KYB onboarding takes days to weeks

As a custodian of merchant funds, CoinsPaid must underwrite each merchant: KYB documentation, contracts, and compliance review before the first payment. PYMSTR onboarding is 5 minutes with no KYB, because the non-custodial architecture removes the underwriting requirement.

The custodian controls your off-ramp

Withdrawals route through CoinsPaid. They can be delayed, require additional verification, or be frozen while the custodian re-assesses risk. With PYMSTR there is no withdrawal step at all: stablecoins arrive in your wallet at block confirmation.

// at a glance

CustodyCustodial hot-wallet (merchant funds pooled on CoinsPaid infrastructure; hacked July 2023 + January 2024)

Fees0.5-1.5% headline + 0.3-0.8% conversion spread + 1-3% fiat withdrawal + $25/mo inactivity (roughly 2-3.5% all-in)

Best foriGaming operators who want a full-service custodial vendor with OTC and conversion, and accept the custody risk

Not forMerchants unwilling to pool funds with a twice-hacked custodian, or anyone who wants flat transparent pricing

//The numbers6 dimensions

The numbers speak.

Feature	CoinsPaid	PYMSTR Recommended
Who holds your money	They hold your money on their servers	We never do. It's yours instantly
Security Track Record	Hacked $37M (2023) + $7.5M (2024)	Nothing to hack, no fund storage
Transaction Fees	0.5-1.5% + conversion spread + $25/mo inactivity	1% flat, no hidden fees
Chargebacks	Dispute process available	0%. Transactions are final
Onboarding Time	KYB required. Days to weeks	5 minutes, no KYB
Settlement	Custodial settlement with delays	Instant. Direct to your wallet

Who holds your money

PYMSTR

We never do. It's yours instantly

CoinsPaid

They hold your money on their servers

Security Track Record

PYMSTR

Nothing to hack, no fund storage

CoinsPaid

Hacked $37M (2023) + $7.5M (2024)

Transaction Fees

PYMSTR

1% flat, no hidden fees

CoinsPaid

0.5-1.5% + conversion spread + $25/mo inactivity

Chargebacks

PYMSTR

0%. Transactions are final

CoinsPaid

Dispute process available

Onboarding Time

PYMSTR

5 minutes, no KYB

CoinsPaid

KYB required. Days to weeks

Settlement

PYMSTR

Instant. Direct to your wallet

CoinsPaid

Custodial settlement with delays

//Why operators add PYMSTR3 reasons

Why merchants add PYMSTR.

$44.5M hacked, and counting

CoinsPaid lost $37M in July 2023 to Lazarus Group, then another $7.5M in January 2024. When a processor holds your funds, their security is your risk. PYMSTR is non-custodial. Funds go directly to your wallet. There's nothing for hackers to steal.

Hidden fees add up fast

CoinsPaid charges 0.5-1.5% per transaction, plus a 0.3-0.8% conversion spread, 1-3% for fiat withdrawals, and a $25/month inactivity fee. PYMSTR charges 1% flat per transaction. No conversion fees, no monthly charges, no surprises.

You don't control the off-ramp

Custodial processors can freeze withdrawals, delay settlements, or require additional verification at any time. With PYMSTR, stablecoins arrive in your wallet the moment the transaction confirms. No intermediary, no delay.

//CoinsPaid questions5 answers

Short
answers.
No jargon.

CoinsPaid remains custodial, meaning funds are stored on their servers. While they've improved security, the custodial model itself is the risk. 95% cold storage still leaves 5% in hot wallets. PYMSTR eliminates this entirely. Funds go directly to your wallet and never touch our infrastructure.

PYMSTR is non-custodial. We never hold, store, or have access to merchant funds. Payments flow directly from customer to merchant wallet on-chain. There are no pooled funds for attackers to target.

Yes. Sign up via wallet connection or social login, an embedded wallet is created automatically in your dashboard. Start accepting payments in minutes. No KYB, no waiting. You can run both processors in parallel during your transition.

Yes. PYMSTR is built for high-risk merchants including iGaming operators. Unlike processors that restrict gambling, we welcome it with 1% flat fees and no volume limits.

Both CoinsPaid and Alphapo are custodial crypto payment processors that have suffered major hacks. CoinsPaid lost $44.5M across two incidents (2023 and 2024). Alphapo lost $60M to the Lazarus Group in 2023. Both hold merchant funds on their own servers, which is the root cause of the hack risk. PYMSTR is the non-custodial alternative to both: funds settle directly to your wallet, so there is nothing for attackers to take. The dedicated Alphapo comparison is available at /vs/alphapo.

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