Crypto Payment Gateway
A payment processor for digital crypto is known as a crypto payment gateway. It is similar to the traditional payment processors and gateways. Crypto gateways allow you to accept digital crypto payments and, in exchange, you receive fiat currency. Blockchain technology is transforming industries such as retail, supply chains, and healthcare. It is quickly making its way to the payment industry. Payment systems need to keep evolving as modes of payment have advanced rapidly from physical money to digital money to crypto. There are major limitations in the traditional payment systems, like intermediaries’ involvement and cross-border transactions.
Businesses want to improve certain areas, such as retail and the supply chain, where the flow of goods and money is critical, so they are constantly looking for a better payment system. Crypto payment gateways can accept crypto on a transparent network and enable payments from all over the world. Let’s take a look at how the crypto payment gateway works.
How Does a Crypto Payment Gateway Work?
Those familiar with traditional payment gateways will not find it hard to understand the mechanism of a crypto payment gateway. Blockchain technology is the foundation for these digital payment gateways. Crypto payment gateways replace credit cards with digital wallets. This requires the merchant to open a merchant account to accept crypto payments. Hence, these transactions occur on a decentralized peer-to-peer network. Your wallet address serves as an identity for parties involved in the payment process. We have listed the steps below to show how they operate in the real world.
- The crypto gateway records the payer’s data, such as a wallet address, encrypts it, and sends the details to the merchant’s server as soon as the payer places an order.
- The merchants scan the blockchain where nodes confirm and validate the payment transaction.
- Coins are transferred to the merchant account as soon as the verification is done. The crypto gateway will then notify both parties that the payment was successful.
- Merchants can also convert coins to fiat currency through the crypto payment gateway.
This way, merchants can deposit funds into their accounts with different fiat currencies and can also accept payments in various crypto..
Main Features of Crypto Payment Gateway
You can complete cross-border payment transactions in minutes using the crypto payment gateway. It requires 5 to 15 days to complete a fiat currency transaction. Payments on imported and exported items can be completed quickly using the faster transaction speed of a crypto gateway.
By integrating a crypto gateway into existing payment models, businesses can accept payments directly from customers across a peer-to-peer system.
No Need For Intermediaries
The role of mediators and third parties is eliminated in a crypto payment gateway solution. You can avoid high transaction fees as the payments reach the merchant directly from the user’s wallet.
The integration of a crypto payment gateway solution into the existing system is easy. Merchants can start accepting crypto payments as soon as the crypto plugin is integrated into the application.
The values of crypto can oscillate quickly as the crypto market is highly volatile. The real-time exchange feature enables the crypto gateway to convert coins to fiat currency at any time.
Best Crypto Payment Gateway
We have listed some of the top crypto payment gateways below.
Coinbase has the resources to develop stunning features to help its users. Coinbase has a large user base and is also the most used crypto payment processor. Coinbase can be used as a normal exchange as well as a crypto payment gateway. Merchants do not need to request a withdrawal as it instantly converts crypto to fiat currencies.
The only downside is that it only operates in a limited number of countries worldwide.
Bitpay started in 2011 and is one of the longest-serving crypto payment processors. It is easy to set up and operate this crypto gateway. Bitpay has a lot of features. It has numerous e-commerce plugins that are open source. Bitpay also offers a two-factor authentication system to enhance its security. It has emerged as a trusted crypto payment processor for some of the most reputed businesses in the world.
You can exchange crypto for a wide range of fiat currencies through Spicepay. It has a reputation as a highly secure crypto payment processor. One of its unique selling points is that it allows merchants to withdraw crypto payments via PayPal. It does lack some features compared to other crypto gateways in this list, but it is a great platform for businesses that rely heavily on PayPal.
Coingate is a user-friendly crypto payment processor. It allows merchants to set up and monitor payments through their mobile phones. Merchants can boost the number of payment methods using this crypto gateway as it supports more than 40 crypto. It provides plugins for multiple e-commerce platforms and only charges 1% in transaction fees. Japan, Belgium, and Brazil are some of the diverse economies that mainly use Coingate.
It is normal to have doubts about something new when it involves finances. It does have a few drawbacks. You might be receiving payments from around the world at different time zones, so you rely completely on the user’s ability to maintain uninterrupted service. There is also a fear that you could lose all funds in your account in the event of a hack. However, crypto payment gateways can remove a lot of disinformation, confusion, speculation, and also anxiety that can come from a decentralized or unregulated source. Crypto payment gateway solutions can be important to businesses looking to expand their scope of operations. You can attract crypto enthusiasts with crypto gateway features like multiple wallet integration, instant transactions, and security. Crypto payment gateways can give your customers payment options of their choice and also give you the freedom to conduct your business finances the way you want. Buy ETH from ZebPay one of the oldest and secure crypto exchanges in India.