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Best Crypto Payment Gateways for Businesses in 2024

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Best Crypto Payment Gateways for Businesses in 2024

In 2023, the total transaction value of crypto gateway payments recorded worldwide was $1.62 billion. This is projected to grow at a CAGR of 17% from 2023 to 2030. Since most crypto transactions are through direct wallet-to-wallet transactions, the actual value of cryptocurrency transactions used for payment of goods may actually be significantly higher than this value.

Businesses looking to get a piece of that pie are exploring ways to start accepting cryptocurrencies beyond the usual wallet-to-wallet crypto transactions. A crypto payment gateway allows businesses to accept cryptocurrencies such as Bitcoin, Ethereum, and Tether as payments within a more secure payment flow. Crypto payment gateways may also allow merchants to keep the payments as cryptocurrencies, convert cryptocurrencies to fiat currencies, and accept cross-border payments.

RELATED: Top Cryptocurrency Predictions for 2024

Aside from the increased adoption of crypto payments, some other benefits of accepting cryptocurrency payments are lower transaction costs, no risk of chargebacks, enhanced security, and access to a unique customer base.

Top crypto payment gateways comparison

The best crypto payment gateways offer a combination of seamless integration, extensive cryptocurrency support, robust security features, and competitive pricing. The comparison table below illustrates the transaction fees, number of crypto and fiat currencies supported, and e-commerce plugins for each crypto payment gateway.

Our rating (out of 5) Transaction fee* Cryptocurrencies Fiat settlement currencies E-commerce plugins
NOWPayments 4.54 0.5% (if no currency exchange) 200+ 20+ 9
BitPay 4.30 1%–2% + 25 cents 15 9 6
Coinbase Commerce 4.25 1% 13 1 4
OpenNode 3.98 1% 1 8 6
Crypto.com 3.98 0 30+ 4 6
*Crypto transactions always incur a network or gas fee for executing operations on the blockchain. The transaction fee charged by the payment gateway is a separate fee.

NOWPayments: Best overall

Image: NOWPayments

Our rating: 4.54 out of 5

NOWPayments is a flexible cryptocurrency payment gateway that allows businesses to accept both crypto and fiat payments. It offers a range of integration options and settlement methods, giving merchants control over how they manage their funds.

Why I chose NOWPayments

NOWPayments’ biggest strength is the complete flexibility it provides to merchants when it comes to accepting payments. It allows merchants to receive both fiat and cryptocurrencies. Upon receiving the payment, the merchant has continued flexibility on what to do with it (keep it in the same currency or convert it to a different currency) and where to put it (keep the payment in custody or withdraw it to a crypto wallet or bank account).

Aside from the settlement flexibility, NOWPayments offers all the possible ways to accept crypto payments. Its Custody feature allows merchants to accept cryptocurrency payments without a crypto wallet and make currency exchanges without paying network fees. It also has a network fee optimization that can help minimize blockchain fees when converting or transferring cryptocurrencies.

NOWPayments offers a more comprehensive set of features than other crypto payment gateways on this list. This makes it an excellent fit for businesses seeking full control and flexibility in managing their crypto payments.

Pricing

  • Transaction fee: 0.5% for payments without exchange.
  • Conversion fee: 0.5%.

Features

  • Instant account registration.
  • Accepts over 100 cryptocurrencies as payments.
  • Settles in more than 20 fiat currencies.
  • Custody feature.
  • Ways to accept crypto payments:
    • API integration.
    • Invoices or payment links.
    • Ecommerce plugins: PrestaShop, Magento 2, OpenCart, Zen Cart, Shopware, WooCommerce, WHMCS, Ecwid, Shopify.
    • QR code.
    • Subscription.
    • Donation button.
  • Payment flow:
    • Accept crypto > keep in custody
    • Accept crypto > convert to other cryptocurrency > keep in custody
    • Accept fiat > convert to cryptocurrency > keep in custody
    • Accept crypto > withdraw to your crypto wallet
    • Accept crypto > convert to other cryptocurrency > withdraw to your crypto wallet
    • Accept crypto > convert to fiat > withdraw to your bank account
    • Custody balance > withdraw to your crypto wallet
    • Custody balance > convert to fiat > withdraw to your bank account/
  • Fixed-rate exchange option.
  • Crypto-to-fiat withdrawal: 1 business day.
  • Mass payouts.
  • Network fee optimization.
  • API to integrate with any mobile POS terminal.
  • Sandbox environment for testing.
  • 24/7 customer support.
The NOWPayments Dashboard.
The NOWPayments Dashboard. Source: CoinGate

Pros and cons

Pros Cons
Settlement flexibility. Complex refund process.
Custody feature to save on network. fees for currency exchanges. Limited reporting tools.
Accepts both crypto and fiat payments. Minimum payment fluctuates.
API integration with any mobile POS terminal.

BitPay: Best for multi-user access

BitPay logo.
Image: BitPay

Our rating: 4.30 out of 5

BitPay is a cryptocurrency payment gateway known for its user-friendly interface and multi-user account capabilities. It offers tiered transaction fees that decrease with higher monthly volumes. However, it provides limited flexibility to merchants as payments are automatically converted and settled into the merchant’s bank account or cryptocurrency wallet.

Why I chose BitPay

BitPay is the only crypto payment gateway on this list that allows multi-user access. This makes it a great choice for businesses that require multiple team members to manage payments. It also locks in exchange rates at the time of purchase, which helps protect merchants from crypto price fluctuations.

While its transaction fees may be higher than others on this list, BitPay is a reliable and well-known provider, and its mobile POS app makes it easy to accept crypto payments in-store.

Pricing

  • Transaction fee (based on monthly volume):
    • $500,000–$999,999: 1.5% + 25 cents
    • $1,000,000 and above: 1% + 25 cents
  • Application fee: $75
  • Minimum withdrawal amount: depends on currency; $20 for USD

Features

  • Instant account registration.
  • Accepts 15 cryptocurrencies as payments.
  • Settles in 9 fiat currencies.
  • Automatic volume discounts.
  • Daily settlement.
  • Ways to accept crypto payments:
    • API integration.
    • Invoices or payment links.
    • Subscription.
    • E-commerce plugins: Magento 2, Shopify, WHMCS, Wix, WooCommerce, BigCommerce.
    • Easy to embed payment button.
    • Donation button.
    • Mobile POS app.
  • Payment flow:
    • Accept crypto > converted to your chosen currency > daily settlement to your chosen bank account or cryptocurrency wallet.
  • Multi-user login access.
  • Locks in rate at the time of purchase.
  • Lightning network support.
  • Customer support via email within 1 business day.
The BitPay dashboard.
The BitPay dashboard. Source: BitPay

Pros and cons

Pros Cons
Multi-user capability. Fewer e-commerce plugins.
Mobile POS app for accepting payments in-store. Application fee.
Locks in rate at time of purchase. Higher transaction fees, even with the automatic volume discounts.
Low minimum withdrawal amount.

Coinbase Commerce: Best for instant settlement

Coinbase Commerce logo.
Image: Coinbase Commerce

Our rating: 4.25 out of 5

Coinbase Commerce is a cryptocurrency payment gateway that makes it simple and straightforward for businesses to accept cryptocurrency payments. It automatically converts incoming crypto payments into USD or USDC and offers instant settlement to the deposit address provided by the merchant.

Why I chose Coinbase Commerce

Businesses that are just exploring crypto payments and would like to start small will find Coinbase Commerce simple and easy to use. Unlike other gateways on this list, Coinbase Commerce does not provide the option to keep other currencies except USD and USDC. Instead, it locks in exchange rates at the time of purchase and transfers funds directly to the merchant’s chosen deposit address.

While it lacks currency exchange options and is limited to website payments, its ease of use and support for popular e-commerce platforms like Shopify and WooCommerce make it an ideal choice for businesses prioritizing straightforward, hassle-free transactions.

Pricing

Features

  • Accepts 13 cryptocurrencies as payments.
  • Settles in 1 fiat currency only.
  • Daily settlement.
  • Ways to accept crypto payments:
    • API integration.
    • E-commerce plugins: Jumpseller, Primer, Shopify, WooCommerce.
  • Payment flow: Instant settlement to deposit address indicated.
  • Locks in rate at the time of purchase.
  • Lightning network support.
  • Customer support via account dashboard only.
The Coinbase Commerce dashboard.
The Coinbase Commerce dashboard. Source: Coinbase Commerce

Pros and cons

Pros Cons
Simple and straightforward. No currency exchange.
Instant settlement eliminates rate volatility. No sandbox environment for testing.
All incoming payments are converted to USD or USDC.
Only for accepting payments on a website.

OpenNode: Best for Bitcoin-only payments

OpenNode logo.
Image: OpenNode

Our rating: 3.98 out of 5

A cryptocurrency payment gateway focused exclusively on Bitcoin, OpenNode offers features such as split settlement and scheduled payouts. Its Lightning network support makes it highly efficient for Bitcoin transactions.

Why I chose OpenNode

OpenNode stands out as the best option for businesses that want to accept Bitcoin and nothing else. Its features, like custom automatic settlement schedules, multiple ways to accept crypto payments, and limited settlement currencies, make it an ideal option for businesses that want to limit their crypto payment acceptance but would like to accept it in various payment channels.

Although limited to Bitcoin, OpenNode’s simplicity, combined with strong e-commerce integrations, makes it a great fit for businesses focused on Bitcoin payments.

Pricing

  • Transaction fee: 1%.
  • Withdrawal fee: 1% for on-demand bitcoin payout.

Features

  • Accepts 1 cryptocurrency only (Bitcoin).
  • Settles in 8 fiat currencies.
  • Ways to accept crypto payments:
    • API integration.
    • Payment button.
    • Invoices or payment links.
    • E-commerce plugins: Shopify, Magento, BigCommerce, Prestashop, WooCommerce, OpenCart.
    • QR code.
  • Payment flow: Accept bitcoin > keep as bitcoin or convert to local currency > transfer to bank account or bitcoin wallet.
  • Merchant may choose to initiate payouts or to set them on a schedule.
  • Split settlement.
  • Lightning network.
  • KYC compliant.
  • 24/7 customer support.
The OpenNode dashboard.
The OpenNode dashboard. Source: OpenNode

Pros and cons

Pros Cons
Merchants may set a custom automatic settlement schedule. Bitcoin only.
Lightning network support. Withdrawal fee for on-demand bitcoin payout.
Split settlement.

Features

  • Instant account registration.
  • Accepts over 30 cryptocurrencies as payments.
  • Settles in 4 fiat currencies.
  • Ways to accept crypto payments:
    • API integration.
    • Invoices or payment links.
    • Ecommerce plugins: Shopify, WooCommerce, OpenCart, Ecwid, NopCommerce, PrestaShop.
    • Subscription.
  • Payment flow:
    • Accept crypto > convert to your chosen currency.
    • Account balance > withdraw to bank account or cryptocurrency wallet.
  • Any conversion and transfer fees are charged to the customer.
  • Customer can pay using a QR code or by linking to Crypto.com, Metamask, WalletConnect, or other cryptocurrency wallets.
  • The merchant receives the exact pricing amount.
  • Lightning network support.
  • 24/7 customer support.
The Crypto.com Pay dashboard.
The Crypto.com Pay dashboard. Source: Crypto.com

Pros and cons

Pros Cons
Merchants receive the exact price of the goods/services. Limited fiat and cryptocurrencies for settlement.
Allows merchants to choose pricing currency in fiat or crypto. No POS option for in-person payments.
Merchant is not subjected to exchange rate volatility. No advanced reporting tools.

Benefits of using a crypto payment gateway

Using a crypto payment gateway offers some advantages for businesses, including:

  • Lower transaction fees compared to traditional payment processors.
  • Instant payments and quicker settlements.
  • Global reach.
  • No chargebacks or payment reversals.
  • Enhanced security with the blockchain technology.
  • For some gateways, flexibility to convert crypto into fiat or keep as digital currency.

How do I choose the best crypto payment gateway for my business?

When choosing a cryptocurrency payment gateway for your business, consider these key factors:

  • Transaction fees: To maximize your profits, look for a gateway with low fees, especially if you process a high volume of transactions.
  • Supported cryptocurrencies: Make sure the platform supports popular cryptocurrencies or those most relevant to your customer base.
  • Fiat conversion options: If you don’t want to hold crypto, choose a gateway that offers easy conversion to fiat currencies.
  • Ease of integration: Ensure the platform integrates smoothly with your website, POS, or e-commerce platforms.
  • Settlement times: Consider how fast the gateway settles payments into your bank or crypto wallet to maintain your cash flow.

Methodology

For this list of the best crypto payment gateways, I focused on solutions that offer flexibility, security, and ease of use for businesses looking to accept cryptocurrency payments. I evaluated each gateway based on specific criteria: integration, developer tools, and user experience (25%); supported cryptocurrencies and payment options (25%); security, compliance, and privacy (20%); pricing and transaction fees (15%); and customer support and resources (15%).

My research included a thorough review of product documentation, pricing pages, customer feedback, and hands-on testing or demo environments where available. The goal was to recommend gateways that offer a strong balance of features, ease of use, and security for businesses across different industries.

This article and methodology were reviewed by our retail expert, Meaghan Brophy

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What is PHP? A Thorough Explanation for Absolute Beginners – WordPress.com News

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What is PHP? A Thorough Explanation for Absolute Beginners – WordPress.com News

If you find yourself diving deeper into the topic of WordPress, content management systems, and websites, a term you will quickly stumble upon is “PHP.” You will likely hear how crucial PHP is for the Internet and that it is what’s powering WordPress websites.

However, what exactly is PHP, and why is it so important?

The short answer is that it’s a general-purpose, server-side scripting language. That said, unless you are already knowledgeable in programming and web development, that probably doesn’t make things much clearer. 

In order to help you better understand this topic, we’ll cover PHP in detail below. You’ll learn what PHP is, why it matters, and how it relates to WordPress and pretty much everything you do online. We promise you’ll be surprised to hear how much you likely rely on PHP every day.

  1. What is PHP? History, features, and benefits
    1. PHP features
    2. Benefits of PHP
  2. How PHP works: Creating dynamic web content
  3. PHP and WordPress: The CMS’ heart and soul
    1. Powering themes and plugins
    2. Without PHP, there would be no WordPress
  4. PHP in everyday life: You rely on it more often than you think
    1. Other abilities of PHP
  5. What is PHP? It is the web’s backbone

What is PHP? History, features, and benefits

The original developer of PHP was a Danish-Canadian programmer named Rasmus Lerdorf. He first created the language in the mid 1990s to build tools for his own website; that’s why PHP originally stood for “Personal Home Page.” Today, it stands for the recursive acronym “Hypertext Preprocessor” and development and support has been taken over by the PHP Group.

PHP features

PHP has some notable features, many of which are applicable to the way WordPress works:

Open Source: The first thing that is important to note is that, like WordPress, PHP is open source. That means it does not belong to any one business entity. It also means that it’s free to download and use for any purpose.

Also like WordPress, PHP is maintained by a number of volunteers around the world. The next major release, 8.4, will be available November 21, 2024.

Finally, both WordPress and PHP are community-funded––while WordPress has the WordPress Foundation, The PHP Foundation’s mission is to “ensure the long-term prosperity of the PHP language.” Automattic is a proud Platinum Sponsor of The PHP Foundation.

Server Side: PHP is a server-side language, which means it executes on the server and not in the user’s browser.

For example, PHP’s most frequent application is for creating HTML documents for websites. Even though there are PHP files on the server, the browser does not receive the PHP code; instead, it receives the finished HTML documents for display. This is different from client-side languages like JavaScript where the processing happens directly in the user’s browser after downloading the JavaScript files.

To make things clearer, server-side languages are a bit like going to a restaurant. You send an order to the kitchen, they prepare the meal, and it arrives at your table ready to eat. Client-side languages, on the other hand, are like meal-delivery services. While they provide you with all the necessary ingredients, you still have to put them together in your own kitchen.

General Purpose: PHP is also a general-purpose programming language. You can use it for command-line scripting, creating desktop applications, and more. However, its primary application is in web development. 

Ubiquitous: According to W3Techs, the language is present on 75.7% of all websites. That includes some famous ones, as you will see below.

In addition, it forms the backbone of many content management systems like DrupalJoomla!, and—the most popular of them all—WordPress.

PHP is one of the biggest open source success stories, as much of the modern Internet depends on it to work.

Benefits of PHP

You might be asking yourself why the usage of PHP is so widespread. There are many good reasons for that, but here are just a few:

  • Beginner-Friendly: PHP is relatively easy for beginners to learn due to its intuitive syntax. There are also plenty of tools and frameworks available to make coding easier.
  • Wide Community: The language has a vast and active community of developers worldwide. This means there are loads of online resources, forums, and other places where users can seek help and find ready-made solutions to common problems.
  • Cross-Platform Compatibility: PHP is compatible with popular operating systems, including Windows, MacOS, Linux, and Unix. It also works on various web servers such as Apache, NGINX, and Microsoft IIS.
  • Database Connectivity: In addition, it works with a number of different database formats, such as MySQL, MongoDB, PostgreSQL, SQLite, Oracle, and more. PHP can execute SQL queries, retrieve, update and delete data, and handle database connections and transactions.
  • Cost-Effective: As we have already learned, the programming language is free to use, distribute, and modify. That eliminates the need for expensive licensing fees and reduces development costs, making it an economical choice for web development projects.
  • Scalability: PHP is capable of handling high traffic loads and can easily scale. You can use it together with caching techniques and other optimization strategies to enhance performance. Plus, it’s generally faster than some other programming languages, such as Python.

How PHP works: Creating dynamic web content

One of the main reasons why PHP is so popular for web development is that it seamlessly integrates with various technologies and services commonly used in this area. Examples include HTTP, POP3, IMAP, and more. 

One of its main advantages is that it is highly compatible with HTML, the main language used to create and display websites. In fact, it’s possible to use PHP code in HTML files and vice versa.

Above you can see how both languages appear in the same file. The PHP markup is delineated by opening and closing brackets ( and ?>) so that the server knows where it ends and begins. However, the PHP code itself is inside an HTML  element. The _e function is a WordPress function used for localization, which allows for easy translations across the WordPress software.

The main benefit of this is that using PHP allows web developers to display dynamic content in otherwise static web pages. For example, PHP is able to pull content directly from databases, making it great for templating. You can create a fixed layout for all web pages but then display different content depending on the page a user is on.

the templates page on a WordPress site showing All Templates

This is vastly different from pure HTML, where the content needs to be hard-coded in the page file in order for the browser to show it. PHP, on the other hand, can add it on the fly as needed. That’s one of the main benefits of this programming language—the ability to dynamically combine and display content from different sources and of different kinds according to what the user requests.

PHP and WordPress: The CMS’ heart and soul

As a WordPress user, PHP is especially important. The programming language forms the basis of much of what WordPress can do. It’s what allows you to create, edit, and delete pages, posts, media, and other content. That’s why you see that a lot of files that end in .php when you look in the directory of any WordPress installation.

A screenshot of the PHP patterns files for a WordPress website in VS Code

It’s also why, when installing WordPress on a server, the system requirements insist that PHP be present. In recent years JavaScript has been playing a bigger and bigger role in the WordPress ecosystem, mainly because of the adoption of the Gutenberg editor. That said, PHP is still the main workhorse in the background.

Powering themes and plugins

What are some of WordPress’ main tasks powered by PHP? Before the advent of block themes, WordPress themes were all written mostly in PHP, especially page template files. In fact, if you look at the template hierarchy, you can see that WordPress has PHP files for pretty much all pages and theme components.

a visualization of the WordPress template hierarchy
Image from WordPress.org

Why? So we have the ability to create a single layout for one type of content and then dynamically display what’s saved in the database for a particular piece of content.

That way, if you have 300 pages of the same kind on your site, you don’t need a file for each as you would on a pure HTML website. Instead, you just need one single page template file; PHP can then populate each individual page with its specific content.

PHP also makes it easy to compartmentalize different parts of your theme. For example, it’s very common to not have the markup for a footer in each file. Instead you can create a separate footer.php file and call it into your templates where needed. That way, if you want to modify the footer layout, you only have to make changes in a singular place—the footer.php file.

A highlighted footer template on the Pages template on WordPress with a mint green background

The same is true for plugins, aka collections of PHP files that contain the necessary markup for adding extra functionality to your WordPress site. When you activate a plugin, it gets added to the rest of your website code and can provide the functionality you are looking for.

Without PHP, there would be no WordPress

All of the above is only made possible by the flexibility that PHP offers. Besides the benefits we have discussed before, this is the main reason why WordPress relies on PHP to the extent that it does; PHP offers a ton of flexible functionality specifically for web development. PHP’s capabilities in content management, working with databases, and its modularity all make it a perfect candidate for powering the most popular website builder there is.

This also means that if you know PHP, it opens up a lot more possibilities to modify your WordPress website. You can write custom plugins, make changes to (non-block) themes and page templates, introduce functionality to functions.php, and so much more. So, if you want to improve your WordPress skill set, learning PHP is not a bad place to start.

PHP in everyday life: You rely on it more often than you think

Besides WordPress, you might actually be unaware how much of your general everyday online interactions are enabled by PHP. There are a number of very well-known websites that use PHP to run and many common processes that the programming language performs online:

  • Facebook: The largest social network in existence was initially built using PHP. While they have moved away from the programming language over time, it still plays a significant role in their infrastructure.
  • Wikipedia: The world’s biggest online encyclopedia also relies heavily on PHP for its back end operations, content management, and user interactions.
  • Tumblr: This microblogging and social networking platform employs PHP to power its vast network of user-generated content and social interactions. We’re actually in the process of migrating Tumblr’s backend to run on WordPress; if you’re interested in being a part of this exciting project, leave your information here.
  • Slack: This widely-used team collaboration and communication platform utilizes PHP for its back-end operations, real-time messaging, and API integrations.

And this is just the tip of the iceberg. There are countless other examples of well-known web staples that exist in part because of PHP.

Other abilities of PHP

Up until this point, we’ve mostly talked about PHP in the context of creating and outputting HTML markup; however, the programming language is involved in a lot more that you probably take advantage of on a daily basis:

  • Form Processing: PHP can process and validate data submitted by users via forms. It’s also capable of performing actions such as storing data in a database, sending email notifications, or generating dynamic responses based on user input. Plus, it comes with encryption to keep the submitted data safe.
  • User Authentication: It can also handle user authentication by verifying login credentials. PHP allows you to implement user registration and login/logout functionality, and it can control access to different areas of your website or application. For example: user roles.
  • Session Management: PHP can also manage user sessions, store session data, and track user activity. Among other things, this allows you to save user preferences. PHP can also set cookies and receive cookie data.
  • File Manipulation: The programming language provides a wide range of functions for file manipulation, such as reading and writing files, uploading files from forms, creating directories, and modifying file permissions. This comes in handy for managing files on the server through other applications (like WordPress).
  • Email Handling: PHP comes with functions to send emails from a server. This allows you to build features like contact forms, email notifications, and automated email responses.
  • Third-Party Communication: With PHP you can interact with external APIs and web services. It makes it possible to integrate with other applications, retrieve data from remote servers, and perform actions like posting to social media platforms.

What is PHP? It is the web’s backbone

If you’re an everyday WordPress user or non-developer, you probably don’t spend a lot of time thinking about how much of your online experience is possible thanks to the humble PHP. However, the more you dive into this topic, the more you’ll realize how much you rely on it.

Who knew an open source solution was at the heart of what makes the World Wide Web tick? From the largest content management system in the world to well-known web entities, so much of what we take for granted exists because of it.

There are good reasons why it’s so widespread; from its powerful capabilities over its wide support system to ongoing development and support, there is a lot that speaks for PHP as the go-to solution for web projects.

Since it’s also beginner friendly, learning some PHP skills is definitely a good place to start if you want to dive deeper into the technical aspects of WordPress and web development.


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Ian Stewart to Lead WordPress.com – WordPress.com News

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Ian Stewart to Lead WordPress.com – WordPress.com News

Ian Stewart will lead customer experience at WordPress.com, utilizing his 14 years of experience on the WordPress.com team and a passion for themes.

We are pleased to announce that Ian Stewart (blog, LinkedInGitHub, X) has been chosen to lead end-to-end customer experience for WordPress.com as its Artistic Director and product lead.

In a nod to LVMH’s organizational structure, Ian will lead in the style of a maison head, ensuring that every part of WordPress.com remains the best managed WordPress experience available. He has been a part of the WordPress.com team for over 14 years, and we’re excited to see what changes he will implement on WordPress.com in this new role.

“I got involved with WordPress after growing tired of using Blogger for my personal blog,” Ian says. “This quickly led to the demise of my regular blogging habits as I spent most of my time messing around with my theme…My fooling around with WordPress themes quickly became a delightful obsession as I tried to publicly figure out what I thought about them.”

We’re grateful for your obsession with WordPress, Ian, and we certainly know the feeling.

Please join us in welcoming Ian in his new role.


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Automattic sends WP Engine its own cease-and-desist over WordPress trademark infringement

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Automattic sends WP Engine its own cease-and-desist over WordPress trademark infringement

The brouhaha in the WordPress community looks likely to escalate into a legal battle around trademarks.

Just a day after WordPress hosting service WP Engine sent a cease-and-desist notice to Automattic asking its CEO to stop publicly trashing WP Engine, now Automattic has sent its own cease-and-desist letter to WP Engine, saying the latter has infringed several trademarks like WordPress and WooCommerce.

This comes after Matt Mullenweg, the CEO of Automattic and co-creator of WordPress, last week criticized WP Engine for profiteering off the open source WordPress project, calling it a “cancer to WordPress,” and accused the company of contributing very little to the community.

In its letter dated Monday, Automattic alleged that WP Engine has built a business of over $400 million in revenue based on unauthorized use of its WordPress trademark, which Automattic claims it has the exclusive commercial rights for from the WordPress Foundation. Automattic also said WP Engine has misled consumers into believing that there is a direct affiliation between the two companies.

“Your unauthorized use of our Client’s trademarks infringes on their rights and dilutes their famous and well-known marks. Negative reviews and comments regarding WP Engine and its offerings are imputed to our Client, thereby tarnishing our Client’s brands, harming their reputation, and damaging the goodwill our Client has established in its marks,” the letter read.

“Your unauthorized use of our Client’s intellectual property has enabled WP Engine to compete with our Client unfairly, and has led to unjust enrichment and undue profits,” it added.

Automattic is also demanding compensation for the profits made by WP Engine by using its trademarks and said that if WP Engine doesn’t amicably resolve the matter, the company has the right to file a civil injunction case.

For context, here’s a good summary of the WordPress community by my colleague Paul Sawers:

WordPress powers more than 40% of the web, and while any individual or company is free to take the open source project and run a website themselves, a number of businesses have sprung up to sell hosting services and technical expertise off the back of it. These include Automattic, which Mullenweg set up in 2005 to monetize the project he’d created two years earlier; and WP Engine, a managed WordPress hosting provider that has raised nearly $300 million in funding over its 14-year history, the bulk of which came via a $250 million investment from private equity firm Silver Lake in 2018.

In the cease-and-desist letter WP Engine sent to Automattic on Monday, the company defended its right to use the “WordPress” trademark under fair use laws. The company added that Automattic has “a profound misunderstanding of both trademark law and WordPress Foundation’s trademark policy.”

It also said Mullenweg demanded WP Engine pay Automattic “a significant percentage of its gross revenues — tens of millions of dollars in fact — on an ongoing basis” for a license to use trademarks like “WordPress.”

“When his outrageous financial demands were not met, Mr. Mullenweg carried out his threats by making repeated false claims disparaging WP Engine to its employees, its customers, and the world,” WP Engine’s letter said.

Notably, Automattic’s letter doesn’t mention Mullenweg’s remarks about WP Engine.

In the last week, Mullenweg has accused WP Engine of not contributing enough to the community and offering “a cheap knock-off” version of WordPress. WP Engine pushed back against this characterization and called out Mullenweg for launching a smear campaign against the company, saying it has already affected some of its business.

This might be the start of a long legal tussle between the two entities. A lot of folks also pointed out that this battle might be harmful for providers offering specialized WordPress hosting.

Earlier today, WordPress Foundation changed its Trademark Policy page, and it now calls out WP Engine, alleging the hosting service has confused users.

“The abbreviation ‘WP’ is not covered by the WordPress trademarks, but please don’t use it in a way that confuses people. For example, many people think WP Engine is “WordPress Engine” and officially associated with WordPress, which it’s not. They have never once even donated to the WordPress Foundation, despite making billions of revenue on top of WordPress,” the updated page reads.

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