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What are crypto payment gateways and how do they work?

Nowadays, payment methods are constantly evolving to catch up with the advancement of currencies. Traditional payment systems are effective, but there are various limitations that businesses face across the globe. Crypto payment gateways solve these problems by bringing the necessary solutions for businesses. Their decentralized nature and fast transaction speed have made them efficient for merchants' use.

Let's explore in more detail crypto payment gateways and how they work.

 

What is a Crypto Payment Gateway?

Merchants can accept cryptocurrency using the crypto payment gateways, similar to accepting online payments through your digital wallet. Between the customer and the merchant, these crypto-payment gateways serve as middlemen. Payments can be made through these gateways on websites, mobile applications, e-commerce platforms, and brick-and-mortar facilities.

Converting the money is not required, as the amount gets settled directly in the merchant's account. Merchants can receive crypto payments without any wallet using the crypto payment gateway only.

Crypto payment gateways provide a secure space for borderless transactions. With the help of this gateway, merchants can accept payments globally without any international bank being involved.

 

How do Crypto Payment Gateways Work?

Crypto Payment gateways work similarly to a traditional system, but it differs in one thing; in conventional methods, cards are used, while wallets are used in a cryptosystem.

When a customer goes to the merchant site to make a purchase using the cryptocurrency. They will initiate the transaction by fund transfer; these funds will be transferred to the unique address generated by the crypto payment gateway.

The gateway then verifies this payment, and the crypto transaction gets converted into fiat currency, which the merchant prefers. After this process, the converted fiat funds get transferred to the merchant's bank account.

By following this simple step crypto payment gateway transfers funds to the merchant. To read in detail about Crypto Payment Gateway, follow our article.

 

Some Popular Crypto Payment Gateways

Many crypto payment gateways in the market have proven their worth by providing user-friendly experiences to their merchants. We have brought here the top 5 crypto payment gateways with unique features to help their users.

#1 Speed

Go for fast payments with low transaction fees with Speed- the leading Bitcoin payment processor. Speed allows their users to accept payments globally with the help of its multiple sets of solutions like payment links, One QR, a checkout page, and many more. With the help of Speed, businesses can accept payments, whether they are online or offline.

Speed helps merchants to collect payments through their mobile phones using the mPOS facility. Merchants don't have to invest in additional hardware when they use Speed as a crypto payment gateway.

#2 Coinbase

Provides offline storage facility for the currencies. Trade can be made using Coinbase, and all the transaction records are maintained for analysis. The users can link their bank account with the crypto wallet and trade in any cryptocurrency available on the platform.

#3 Coingate

Buy and sell your crypto using Coingate, it provides cold storage, and cryptocurrency can be converted to fiat money. They support multiple cryptocurrencies and provide the feature to sell them in fiat for earnings.

#4 BitPay

With BitPay, you can buy cryptocurrency using your regular debit and credit card. It provides a space where you can also swap your cryptocurrency for other currencies. There is a non-custodial crypto app facility to store your crypto or purchase a gift card using it.

#5 CoinPayments

For using a multi-coin wallet, CoinPayment is an ideal option. All the cryptocurrencies can be kept safe in the vault for a long run or even locked your cryptocurrencies for a predefined period of time.

 

Benefits and Features of crypto payment gateways

Merchants have generated interest in crypto payment gateways due to their various features and benefits. Let's discuss some of these benefits and features which make crypto payment gateways so popular:

  • Provides instant and borderless transactions for crypto traders.
  • All the transactions made in crypto are secure and get recorded on the blockchain.
  • Traders and merchants can hide their identity as their account address only gets shown.
  • The involvement of intermediaries gets minimal, as any third party is not involved.
  • Crypto payment gateways assure reliability if their users are struggling with the payments.
  • There are no chargeback frauds with merchants due to transparent blockchain networks.
  • Being a global currency, if merchants accept cryptocurrency payments using a gateway, it will enhance their reach in the market.
  • Crypto payment gateways charge a minimal amount of money through transaction fees.
  • It reduces the volatility risk by minimizing a transaction's waiting time.

 

Conclusion

Crypto Payment Gateways are a form of interaction platform between the customer and the merchant. These gateways help merchants to increase their global reach and acquire more customers. With all such features, it is becoming one of the mainstream methods of collecting payment in the cryptocurrency market. Crypto payment gateways are not only fast but also convenient and secure, which simplifies the process of receiving payments all over the world.

 

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Comments: (1)

A Finextra member
A Finextra member 21 June, 2023, 06:19Be the first to give this comment the thumbs up 0 likes

Thank you very much for including us in your article. Our company name is CoinPayments :)

Amy Lane

Amy Lane

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Speed

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