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A cryptocurrency payment gateway is a dynamic payment processing platform that enables merchants or providers to accept payments in numerous cryptocurrencies while maintaining security.
It enables users to make direct payments from one cryptocurrency wallet to another. In addition to their basic functions, payment gateways are responsible for securely transferring the payer's sensitive wallet-related data to the merchant's software.
With more companies searching for the most profitable, safe, and rapid payment methods, this payment network is becoming more popular among enterprises of all sizes.
Crypto payment gateways are based on the blockchain ecosystem, which provides features such as immutability of data and transaction transparency.
Furthermore, the decentralized structure of blockchain removes intermediaries like banks from the payment process, increasing transaction speed and shortening payment processing processes.
Ultimately, this mechanism promotes more individuals to use digital currencies and adds to the rising popularity of decentralized gateways.
Apart from promptly confirming transactions and removing third parties from the payment system, cryptocurrency payment gateways provide a few distinct benefits to both the user and the business.
Benefit Of Cryptocurrency Payment Gateway
No Chargebacks
Once the cryptocurrency payment has been processed through the payment gateway, there is no chargeback or refund available. This feature is beneficial to entrepreneurs who run high-risk firms.
Anonymity For User Identity
Decentralized payment gateways, unlike centralized payment gateways, do not require registration or KYC (know your customer) for verification. Instead, it enables users to connect to the network anonymously. Vendors that sell digital goods and are concerned about privacy will benefit from anonymity.
Fast Processing And Settlement
When there are no intermediaries, crypto payment processing becomes extraordinarily rapid, taking less than 10 seconds. It enables merchants to accept cryptocurrency and rapidly convert it to fiat currency at any moment.
How Crypto Payment Gateway Works
For those who are familiar with standard payment gateways, establishing a crypto payment gateway is simple. Blockchain technology powers cryptocurrency payment channels.
They have replaced the credit card with a digital wallet, which requires retailers to register a merchant account in order to accept cryptocurrency payments.
As a result, the transaction takes place on a decentralized peer-to-peer network in which nodes exchange payment data, validate it, and submit it to the distributed ledger.
It is important to note that the wallet address acts as an identification for both parties participating in the payment process.
A crypto payment gateway enables consumers to transmit crypto coins in exchange for a specific product or service using a decentralized payment system. The instructions below show how the bitcoin payment gateway works in practice.
- When a user puts an order, the application collects the payer's data, encrypts it, and sends the information to the merchant's web server through SSL.
- The merchant scans the blockchain using the integrated payment gateway, where nodes check and confirm the transaction.
- Once verified, the coins are sent to the merchant account, and the payment gateway notifies both parties of a successful payment as soon as his end verification is completed.
- The cryptocurrency payment gateway also enables the merchant to change cryptocurrencies into fiat currency at any moment using the currency's current value.
Features Of Crypto Payment Gateway
Peer-To-Peer Transaction
By integrating a decentralized payment gateway into their existing payment mechanism, merchants, retailers, and companies accept money directly from customers via a peer-to-peer system.
This feature shortens transaction times and provides two primary benefits: faster transactions and secure access to the payment gateway.
Cross-Border Transactions
A fiat transaction might take 5 to 15 days to complete, but a crypto transaction can be completed in a matter of minutes.
A higher transaction speed enables all sizes of enterprises to execute payments on import and export of commodities more swiftly.
Easy Integration
Payment gateways for cryptocurrencies are simple to add to current applications. Merchants may integrate the crypto plugin into their preferred application and begin taking cryptocurrency payments.
Real-Time Exchange
The cryptocurrency market is very volatile, with currencies' values rapidly rising and falling. In such cases, the real-time conversion capability enables a payment gateway to convert tokens into fiat currency at any moment.
Some private decentralised payment gateways take things a step further by providing live price charts and other market information on the site itself.
Which Kind Of Crypto Payment Gateway Perfect Businesses
The digital wallet is configured to accommodate either a single currency or many currencies based on demand.
A proper crypto payment gateway should give clients several alternatives for making crypto payments, such as QR codes, and URLs, for their convenience.
It should also execute transactions in seconds to streamline payment processes with the real-time settlement. At the moment, two types of crypto gateways are popular among enterprises, as mentioned below.
Defi Gateway
The Defi crypto payment gateway lets consumers control their assets using private keys.
These feature non-custodial properties and are incorporated with unique security to provide convenience.
Users benefit from a transparent financial environment in which no third parties are engaged in the payment process.
Multi-Currency Supported
A multi-cryptocurrency payment gateway, as the name implies, allows merchants to accept numerous cryptos as payments from buyers and allows consumers to make payments in different cryptos.
This payment gateway is vital for international businesses that take payment from individuals all over the world with no network expenses.
Furthermore, unlike other blockchain-based payment gateways and wallets, a multi-crypto payment gateway eliminates the need for any intermediaries.
Best Crypto Payment Gateway - Coinremitter
Coinremitter is one of the best crypto payment gateways, and one of the most important things is that Coinremitter is providing most of the crypto services including accepting payments. Coinremitter has become a home for 25,000+ merchants and one of the best things is its API-based plugins are available for WordPress, Opencart, Magento, Laravel etc.
Apart from that Coinremitter includes other best features such as Coin listing, gas station, auto-withdrawal and invoice creation which is something important and useful that other payment gateways aren’t providing.
Coinremitter supports 8 major cryptocurrencies Bitcoin, Litecoin, Bitcoin Cash, Ethereum, Doge, Dash, USDT ERC20, BNB and one of their own Test Coin for new users who wants to get started with cryptocurrency.
What makes Coinremitter different is their Processing fees, they charge only 0.23% which is one of the lowest fees compared with other crypto payment gateways. The transaction fee is also very less but the transaction charge varies according to the crypto coins.
Final Remark
Cryptocurrencies are constantly getting more popular, and your website might benefit from them if you start accepting payments in cryptocurrency from your customers from around the world.
While the world debates the virtues of cryptocurrency, you may take cryptocurrency payments on your website without putting yourself in danger.
Accepting crypto payments and instantly converting them to your preferred currency is simple with the correct plugins.
This means you don't have to be concerned about volatility while still providing a great service to your consumers.
Author Bio
Jyorge Maccaline is an SEO content writer, he is writing a variety of blogs and articles regarding cryptocurrency, NFTs and Blockchain Technology.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.