The world’s growing crypto economy can boost customer conversion rates by offering cryptocurrencies as a payment option. Business owners should consider allowing customers to pay with digital money to expand their payment processing ecosystem and gain a competitive advantage.
Cryptos offer security, quick transactions, identity privacy, and personal information security and are widely adopted by businesses worldwide
A crypto payment gateway connects an online store with a payment processor, providing an efficient method for businesses to accept payments.
Explaining Crypto Payment Gateway
Virtual currencies offer secure and robust payments with benefits like quick transactions, identity privacy, and personal information security. Despite concerns about their safety, they are widely adopted by businesses worldwide.
Businesses are adding various crypto-payment methods to their platforms, operating through multiple gateways and processors.
The payment process typically involves a customer choosing a crypto payment method and entering their payment details at an online store’s payment gateway.
The payment gateway validates the customer’s data and verifies the availability of funds. The customer’s data is encrypted and sent to a merchant acquiring bank’s payment processor.
The bank then sends the information to the customer’s crypto wallet service provider to approve the transaction. The crypto wallet service provider either approves or rejects the transaction, and the bank sends the authorisation data to the payment gateway.
If approved, blockchain funds are converted into the fiat currency of a merchant’s choice. The payment is then transferred to the merchant’s bank account or wallet.
Why You Should Use It
Crypto payment gateways are characterised by decentralisation, allowing a network of nodes to collaborate to process transactions without a single central authority. This feature makes it difficult for one entity to control the system.
Crypto payment gateways also prioritise security, using sophisticated algorithms to ensure only the intended parties can access and use funds. Transactions can be processed and confirmed quickly, making them cost-effective and simpler than traditional payment systems. They eliminate the need for currency conversions and other issues associated with traditional systems.
Many crypto payment gateways offer total anonymity, making them ideal for those who value privacy. They are accessible to people worldwide without requiring a bank account, and transactions are recorded on a public blockchain, providing transparency.
Crypto payment gateways are constantly evolving, introducing new features and functionalities. They also reduce the risk of chargebacks, as transactions are irreversible, reducing fraud and other financial risks. Overall, crypto payment gateways offer a more secure and efficient alternative to traditional payment methods.
How to Pick The Optimal Gateway
Finding and integrating payment gateways is easy due to their popularity. However, to fully utilise crypto gateways’ benefits like security, quick payments, currency support, and enhanced customer experience, finding a suitable facilitator is crucial. Key criteria to consider when selecting a BTC payment gateway include:
- Swift transacting
The transaction speed is crucial for businesses and customers, and blockchain tech facilitates this process using smart contracts and validating nodes.
However, the blockchain with which the gateway interacts can cause transaction peak hours, resulting in delayed transactions. Therefore, the best gateways should interoperate with multiple blockchains, networks, and layer-2 chains to finalise transactions within seconds.
- Fee structure
Gateways have various fees, including setup, transaction, and variable costs, depending on the services added to your website. It is essential to find a payment gateway that offers an affordable setup price with a reasonable commission structure for transactions and payments processed through the gateway.
- Security
Robust security systems are essential for crypto transactions, but recent incidents have seen breaches and cyber hacks. It is essential to check the safety measures and authentication protocols used by the provider and ensure they adapt to recent technological and cybersecurity updates.
- Scalability
Scalability and growth are also important factors to consider when choosing a payment gateway. As your business grows, the transaction volume increases and APIs perform more operations, adding pressure to the gateway’s network. Therefore, ensure the provider can manage the changing dynamics of your operations.
Conclusion
Launching a crypto business requires finding the right financial solution and processor that accepts Bitcoin payments. Crypto payment gateways facilitate transactions for BTC, ETH, and USDT. Thorough research is necessary to find the best gateway provider, ensuring security without compromise and affordability, to help grow and expand the business.
