Initially, blockchain technology gained fame because of the usage of cryptocurrencies. It only involved the flow of money. Using blockchain technology, most of the currency was transferred back and forth and was mostly disconnected from the flow of goods.
For a period of time, people held onto their cryptos and treated it as an investment.
Many companies are using blockchain technology to enhance their productivity in different areas like supply chain, E-commerce, and much more.
The adoption of the crypto payment processor into the supply chain has become a natural progression because it increased efficiency, automation, and liquidity.
Now let us deeply know how crypto payment gateways can improve industry transactions.
The crypto payment gateway creates greater liquidity in digital
Connecting a supply chain to a payment processor provides a different means of making a payment. It opens a new source of liquidity for a business that is involved.
Even if a company is cash-forward, they can use other assets to transact between supply chain participants. For instance – If a company occasionally pays contractors with bitcoin, but they likely can’t use it to pay with manufacturers or supply chain participants
The crypto payment gateway provides the industries with instant, diverse ways to use their crypto assets. It improves liquidity and decreases liability.
Streamline payment improves efficiency and automation
Even if the supply chain has an individual payment processing system, still they are disjointed. They do not work in a seamless manner. This inefficiency of the supply chain has many consequences for businesses using them.
For instance, consider a product that requires different parts, each part is manufactured by different vendors, and everyone is located far from each other. The task of filling out orders and completing them is incredibly time-consuming.
Processes like these in the supply chain may take months to complete depending on what type of product the company is working on.
These systems could become more efficient by digitizing and automating the flow of data. So many companies started adopting crypto and blockchain technology.
A peer-to-peer transaction can reduce the cost for companies.
Crypto payment gateway takes the individual company’s burden by providing a single solution for every participating supply chain or industry.
Allowing industries to process transactions automatically and experiencing significantly lower transaction fees is a huge leap for cost-saving.
Experts believe that the crypto payment gateway is the future, and businesses adopting them will encounter a lot of attention from crypto supporters. Apart from these, there are also advanced crypto payment gateway solutions that aim to facilitate a more efficient business environment without intermediate and human interaction.
Cryptocurrencies will probably have a great impact on payment processing at some point in the future, but in the present, we can be confident that there is no enough demand to explain taking on the added complexity and the risk of accepting them.
In research, it has been found that some Bitcoin exchanges are looking for traditional payment processing for credit cards, so their consumers can purchase cryptocurrency using MasterCard or Visa.
The adoption of cryptocurrency will be on hold until the Federal government develops guidance regulations for virtual currencies. At this time, some countries do not recognize cryptocurrencies as legal tender.
Now let’s focus on some of the issues that created an inconvenience situation for merchants to adopt cryptocurrency payments gateways.
Lack of knowledge in understanding the technology
There is still a lack of knowledge among the people on how the distributed ledger technology works except some of the developers and blockchain believers. A majority of merchants don’t understand the mechanism of blockchain technology, which made them ignore the cryptocurrency payment gateway method.
It is known that the crypto market place is quite volatile, which makes it difficult to establish a proper valuation for currency in exchange for goods. The crypto market has a great tendency to fluctuate between high and low.
This has become uncertain for merchants because if they accept one price for a product in the morning, then the currency value will drop dramatically before the end of the day.
Long processing time
Unlike traditional credit card transactions, transaction processing using cryptocurrencies takes time. Transaction time will vary depending upon the currencies used and the network that is being processed.
As of now, crypto settlements may take up to 30 minutes or even higher if there is a large volume of Bitcoin transactions in a particular network.
Instability of crypto coins
As cryptocurrencies are new, the digital market has yet to establish which one will eventually win over the market space. The volatility of different coins and the addition of new one’s have a bigger impact on the market fluctuations.
To sum up
Until now, the traditional payment methods of credit cards and debit cards remain the primary ways of a customer to purchase goods and services from Merchants. If the market demands the acceptance of cryptocurrencies worldwide, then the merchant and the payment processor will act accordingly.
A cryptocurrency payment gateway is powered by blockchain technology and works with the most transparent and reliable solution.
It provides a cost-effective payment system for all users and does not fail in delivering trust.
Why you need a blockchain-based Crypto payment gateway?
The implementation of a blockchain-based crypto payment gateway brings more efficiency and trust among different networks.
It provides you more time to analyze the distribution channel and how the customers are making the most of the technology.
The crypto payment gateway does not make the transaction process easier, but it accelerates the speed of adopting new mechanisms and methods.
If the smart contracts are integrated for handling transactions, then you can get more assurance of success.
The crypto payment gateway increases transparency for the entire process to gain better norms endorsed and applies them to the core with higher intensity.
How to find a payment gateway for cryptocurrency exchange?
It is essential to find a proper payment gateway with the best qualities that focuses precisely on the features you need.
A crypto exchange development company employs payment processor services to integrate the payment gateway. This helps the traders to buy cryptocurrency with a credit card. As a merchant, these are the following features you have to look for in a payment gateway.
Make sure that the company you choose uses a top-notch anti-fraud software.
The payment processor ensures high conversion that fulfills the process and has a smart routing option.
The processing company should offer various payment methods like credit card or wire transfer.
The payment processor should provide cryptocurrency exchange tools because not all processors offer merchant accounts for this type of business.
As the number of crypto users grows, an increase in the need for cryptocurrency payment gateway is understandable. In recent times, people started to make money with cryptocurrencies, irrespective of the rise and fall of price value. Individuals and entrepreneurs always wanted a safe and intuitive platform to trade cryptos. If you are looking for a crypto payment gateway solution, then approach a payment gateway development company that empowers your business with its pioneering solutions.
Cryptocurrencies have been popular across the digital world ever since it came into existence. The Crypto users have been incredibly increasing due to its unique feature, decentralized mechanism, and programmed by the blockchain technology.
A cryptocurrency payment gateway enables merchants to perform transactions using cryptos and encourage an instant exchange of crypto into fiat currencies.
The primary function of a cryptocurrency exchange platform is for the user to transfer digital currencies between individuals without any intermediate tracking of your transaction.
If a user uses a cryptocurrency as one of its payment methods, the transaction transpires through a payment gateway at a fixed market rate, that automatically converts the cryptocurrency to fiat currency to avoid fickleness of the cryptocurrency market.
Now let’s look at the types of cryptocurrency available in the market.
Different types of cryptocurrencies
A bitcoin is a digital currency. It was the first crypto and also considered as the biggest of all. Crypto users have already mined most of the Bitcoins.
Bitcoins are accepted in many stores than other Cryptocurrencies. Users can buy any item using Bitcoin through the online sellers that accept cryptocurrencies as a payment method. This is another way to liquidate Bitcoin rather than converting them into cash.
Basically, ethereum is a platform that enables users to build a decentralized application and smart contracts. The currency is called Ether.
If a decentralized application runs on the ethereum blockchain, then the user needs Ether to pay for transaction fees. Ethereum can process transactions in less than a minute.
Ripple is a blockchain that is specifically designed for banks to make their payments faster. It is also termed as banker’s coin.
Many financial companies have partnered with Ripple. An alternative to fiat currencies Ripple is the best option to use within the world of finance.
Now lets deep dive into the topic of knowing the best cryptocurrency payment gateway.
Best cryptocurrency payment gateway
CoinSwitch is one of the best crypto payment gateway, where users can convert Bitcoin and other 30 + cryptocurrencies into Fiat and then trade using the CoinSwitch exchange platform.
Using a Coinswitch platform, users can buy cryptocurrency is like Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and much more.
Coinbase is one of the most extensive exchanges in the world. Coinbase clings on all the legal procedures that are necessary to be a Crypto payment gateway and is also considered a most trusted Crypto exchange.
In the Coinbase exchange platform, users can quickly convert cryptocurrencies into Fiat currencies without having the merchant to have a withdrawal request.
CoinGate specifically designed to be used in a user-friendly manner where the users can monitor the payments through their mobile phones. It is one of the most preferred payment gateways in recent years.
Coingate support 40 + cryptocurrencies and also charge an operations fee of 1% on every transaction.
As the popularity of cryptocurrencies increases, many countries have started to accept crypto as one of the payment methods. Perhaps in the near future, Crypto payment might stand tall among all the types of payment methods. It’s never too late, start integrating with the best cryptocurrency payment gateway into your business that drives your revenue scale higher!
A cryptocurrency payment gateway is similar to a Point Of Sale system where payments are processed. A payment gateway’s primary function is to process digital transactions by transferring the sender’s funds & data to the receiver.
Accepting bitcoins and altcoins as a payment brings in a lot of advantages for businesses. Think of this: Payments through credit cards are usually expensive. And, banks or payment processors charge a fee for processing the transaction.
Crypto payments bring such transaction fees to less than 1 percent. Moreover, bitcoin transactions are irreversible, meaning, there is no open door for false chargebacks or returns.
Defining Crypto Payment Gateway
A crypto payment gateway allows merchants/retail stores to accept transactions in bitcoins and altcoins. In recent years, we have witnessed many payment processors that facilitate the buying and selling of popular cryptos like Ethereum, Ripple, Tether, Litecoin, and Bitcoin Cash.
“A quick tip: Since the crypto market is an extremely volatile one, businesses accepting cryptos as payments may convert them into fiat regularly.”
Why Businesses Need Crypto Payment Gateway?
There are numerous reasons that an enterprise could benefit by adopting cryptocurrencies as a payment option.
Businesses could offer existing customers new payment methods
Attract new customers who prefer using bitcoin and altcoins to pay for their e-commerce purchases, goods, and services
Companies could set up a discreet and trusted payment method for customers (no credit card or bank statements and all)
Crypto payments are far more secure than the traditional ones and are retained on the blockchain network indefinitely
Reduce the payment costs that come with other methods such as credit cards and banking transactions
Play a major part in the cryptocurrency revolution
Above all, traditional payment gateways are charging heft transaction fees, in particular for cross-border payments. So, now is the time to replace the traditional systems with newer, reliable, trustworthy crypto payment gateways.
An online payment gateway is a link that connects your bank account to the platform where you need to transfer your money.
A Cryptocurrency payment gateway software that authorizes users to conduct an online transaction through different payment modes like credit card, debit card net banking, UPI and other online wallets
The payment gateway takes over the role of the third party that securely transfers your money from one bank to the merchant payment portal.
Now let us know the steps that need to be considered for selecting the right payment gateway for your business.
Steps to be followed to choose the right Cryptocurrency Payment gateway
Transparent fee structure
One must understand the fee structure of a service provider before signing up. There might be hidden fees associated with them.
Some of the gateways charge fees for each transaction, and some have a monthly subscription fee for a fixed number of transactions.
It is necessary to check whether the payment gateway supports both recurring and one time payments.
Automatic recurring billing support
If you’re giving the customer access to content through paid membership, your gateway should support automatic payment for recurring plans. It is not your customer has to revenue manually each month, which can be a bad experience.
Some gateway offers automatic retry so that users don’t have to collect all the failed payments manually. The customer subscription will not be terminated due to the payment failure but will remind in a waiting status until the payment details are updated.
For your business, if you have customers globally, then it is necessary that a gateway provider should support the multi-currency transactions.
Your payment gateway does not have any geographical restriction and should support international shoppers to access your business or brand.
The most important thing is integrating the payment processor with your own website and with different cards and banking services.
You must choose a provider where your customer’s process checkout upon the gateway providers site, pay the bill, and the gateway provider sends them back to your website once the transaction is made. So it is essential to keep the integration simple.
24/7 Customer support
The Crypto payment gateway service provider must render you with excellent customer service that supports your client and work 24×7 because they are dealing with your customer’s money and your trust.
Over to you
The payment process difficult part in your business that you can’t afford to take a hit and miss approach. We hope that with all the points mentioned above, you will identify the best one available in the market that can save your money and keep your customer happy.
A cryptocurrency payment gateway is a borderless payment network that allows a smooth transfer of digital currencies and enables merchants and uses to do transactions in Bitcoins and altcoins.
Simply put, a payment processor that facilitates the immediate transfer of digital currencies into fiat currencies.
The digital market has been volatile like never before. A lot of government restrictions and many transactions are susceptible to losses. The payment gateway is equipped with another software tool that allows the whole process to automatically transfer crypto coins into the wallet of a merchant.
Now let us briefly discuss the advantages of cryptocurrency payment gateway
Top 3 advantages of cryptocurrency payment gateway
Accept digital currencies worldwide
The main advantage of the internet is that it enables companies to conduct businesses with anyone across the world. So even a third-tier business can now sell its goods and services worldwide.
As cryptocurrency is decentralized businesses it can accept foreign currency transaction fees and exchange rates. This created a business to have a single form of currency that is accepted through the cryptocurrency payment gateway regardless of the location.
In the traditional method, when a business process a credit card payment the participants involved in a particular transaction like merchant, credit card company and other intermediate charges a fee. This middleman charging fee is eliminated in cryptocurrency payment.
The payment is routed directly between the sender and receiver eliminating all the intermediates and lower the transaction fees. In cryptocurrency payments, the transaction fees usually range between 0 to 1% so it allows businesses to save significant money on their sales.
High security and privacy
In traditional methods, credit card payments are generally targeted by hackers who can steal the customer’s personal information and assets. Crypto payments are less prone to fraudulent activity.
In crypto payment customers are not required to share any of their personal data as the payment is completely anonymous. So security breaches are less when compared to other payment methods.
To sum up, these are some of the advantages that you can encounter when you use a cryptocurrency payment gateway. If you are looking to accept cryptocurrency as your payment method approach a cryptocurrency payment gateway provider so that you will be benefited with all these advantages!
Multi- cryptocurrency payment gateway
As the name suggests, a multi-cryptocurrency payment gateway is a decentralized payment platform that enables users to send and receive payments in one or more cryptocurrencies.
The ultimate goal is to create a platform that enhances the payment process by eliminating the intermediates and also intended to increase the regular use of digital assets on a daily basis.
By using blockchain as a base foundation, the payments are highly encrypted, and hence it provides more secure online payments than the traditional methods. It also enables global transactions with multi cryptocurrencies between suppliers, businesses, distributors, and customers at a fraction of cost.
The common idea behind the blockchain ecosystem is smart contracts. It is basically a self-executing contract with the terms of the agreement between the buyer and seller, which has been written in lines of code. It is used to negotiate and close payment agreements between transaction parties.
What makes a multi-cryptocurrency payment gateway different from the conventional payment gateway?
When it comes to international transactions, the traditional payments often come with high risk and restrictions.
In a decentralized payment gateway, it accepts more than 500 different kinds of cryptocurrencies. The decentralized nature also means that the payments are much safer and less vulnerable to fraudulent activities.
In crypto payment gateway, there is no human element involved, and it reduces fraud as well as human mistakes. Once the transaction is recorded and confirmed on the blockchain, it is impossible to alter or edit.
This payment gateway enables you to perform cross-border payments, and there are no more frozen accounts or no more limitations due to your geographical locations.
Benefits of crypto payment gateway
The main agenda of a crypto payment gateway is to provide users with high security, convenience, speed, and cost-saving payment methods. This decentralized system gives users complete freedom over when, where, and how to conduct their payments. The purpose of multi-cryptocurrency payment is to provide users a convenient payment method and creates a standardized network that can be used by different users worldwide without the need for separate applications.
In addition, automated smart contracts improve transaction speed. A crypto payment gateway enables transactions between parties from anywhere around the world, and it takes the completion time of 15 to 20 seconds. This benefit made the traditional online payment a downfall, which can normally take up to 3 days.
The self-execution of smart contracts have also shown a significant impact on transaction cost. The involvement of intermediates, like banks and other governing bodies, can cause transaction costs to stack up by charging higher transfer fees and involving unnecessary third parties to the transaction process. This involvement is terminated while using a cryptocurrency payment gateway that simply utilizes the smart contracts and therefore eliminates the middleman, reducing the transaction fee to the absolute minimum.
Finally, these are the reasons why the crypto payment gateway is extremely convenient. Making your own crypto payment gateway from scratch is not easy. Instead, you can deploy from a Crypto payment gateway development company and save you from a ton of mundane work. Let’s start working on your crypto payment web application immediately.
The e-commerce industry is an extensive sector that is connected across the globe. Manufacturers from distinct parts of the world supply products to consumers spread across other localities. Intermediaries involving in e-commerce payment gateway earn huge transaction fees for every transaction and operation performed. Crypto payment gateway benefits are huge that e-commerce owners can ruthlessly cut-off intermediary charges and transaction fees.
Giant e-commerce brands like Amazon, Walmart, and much more have integrated crypto payment gateways to their process. Let me provide the brief advantages of accepting crypto payments in the e-commerce industry!
Devoid of cross-border restrictions
Fiat currency value differs in every federation, and hence consumers can suffer hindrances in payment methods. Also, manufacturers and e-commerce platform owners find it hectic to transfer currencies to the native value. Hence, accepting crypto payments for products in the e-commerce industry can be a hassle-free task for the entire community wheel.
Also Read : https://blog.blockchainfirm.io/ultimate-guide-to-understand-crypto-payment-gateways-better/
Intermediaries and central authorities earn millions of transaction charges every day in fiat payment gateways. Crypto transactions are devoid of intermediaries, and the peers can transfer crypto-assets across any part of the world without any third-parties. Crypto payment acceptance in the e-commerce sector can immensely reduce intercharges paid to the central authorities.
Devoid of governance
Crypto transactions are logged in the blockchain ledger. Miner nodes verify and approve legitimate crypto transactions. Payee, receiver wallet address is verified, and the source of crypto coin is tracked back for the approval process. Hence, no single person or authority takes ownership of the crypto payments, thereby avoiding scammers.
In fiat transactions, the withdrawal process is tedious for e-commerce industries involving wholesome money. The crypto transactions can be performed only by accessing the wallets. The wallet prompts for secured private keys to authorize and process the crypto coins. Hence, the crypto owners and merchants can securely withdraw their assets whenever required.
Fiat transfers take 5-15 business days for overseas transactions, whereas the crypto coins are transferred within minutes. The crypto space is devoid of intermediaries, and transactions are approved by a group of miner nodes across the network. Hence, the crypto payments are rapid and take negotiable processing time even for cross-border transactions.
With the aforementioned Advantages of crypto payment gateways, e-commerce industries can upgrade their profit rates to a greater extent. Sure, every small and medium scale e-commerce industry would integrate crypto payment gateways in the near future!
A cryptocurrency payment gateway is a channel that allows traders to accept cryptocurrencies as a mode of payment. This payment gateway simply allows users to buy or sell goods and services across the globe with crypto payments.
Merchants can terminate the barriers that are associated with traditional payment methods such as high fees, identification procedures, and delays.
This payment gateway helps merchants to perform transactions with cryptocurrencies and also supports the exchange of crypto coins into fiat currencies.
Here are some of the best cryptocurrency payment gateway solution providers who can help to lift up your business.
Coinbase is one of the most popular crypto payment gateways for business transactions. The main feature is that they immediately convert crypto coins into fiat and avoid price volatility.
Coinbase exchange platform renders you to perform a fast transaction, and the transaction fees are minimal.
This payment gateway offers a variety of options for both offline and online businesses to start accepting cryptocurrencies as a payment method.
B2Bin pay enables global transactions between various parties who want to send, receive, store, exchange, and accept cryptocurrency as a payment.
This payment gateway possesses a high degree of automation, and the transaction speed takes place in about 20seconds. This helps users to make transactions quick when compared to other payment gateways.
As it is a global crypto payment solution, it supports 800 crypto coins and tokens and provides you with 24/ 7 customer care in 6 different languages.
Coinsbank is a blockchain payment gateway that is synchronized with your debit card with just your fingerprint.
Coinsbank is an open-source application that can support different platforms like Android and iOS.
It provides users with instant deposit and withdrawal methods along with high security by activating duo authentication.
The fame of crypto coins is increasing day by day. Many countries have started to deploy this payment method as mainstream and also approving it as a legal mode of payment. Choose the best cryptocurrency payment gateway provider for your business, which can help you outrank your competitors!