Crypto payment gateway is trending among retailers and businesses. In today’s digital world, new technological advancements are covering the market every day. Cryptocurrency is one such technology that although introduced in 2008, only became popular in the past decade. The underpinned blockchain architecture has made cryptocurrencies a global trend today. Worldwide merchants are planning to build crypto payment gateways to receive payments in cryptocurrencies.
We all know that a single click helps to transact multiple cryptocurrencies within and across borders. Usually, cross-border transactions require regulations and are controlled by the central authority. However, with crypto there is no third party or authority involved with transactions, making it faster, and cost-effective. The regulated functional ability of cryptocurrencies helps millions of crypto traders to invest in them and earn high profits. However, cryptocurrency is an extremely volatile market and fluctuates depending on the market situation.
At present, the currency is widely used on many platforms and is gradually stepping unto the business industry to exchange money more than ever. A report suggested that 75% of the merchants in the US are planning to build a crypto payment gateway. Among which many merchants have already invested millions of dollars in the architecture. In this article, we have every detail to help you build a crypto payment gateway for your business.
What is Crypto Payment Gateway?
A crypto payment platform works as a credit or debit card platform. The platform only transfers important information on mobile devices or websites and banks or payment processors. Similarly, the crypto payment gateway is a decentralized online platform for payment processes. On such platforms, the merchants and the users can receive, send, and transfer multiple crypto coins securely with high-end security tools.
Coming to multiple crypto payment gateway platforms, it supports major cryptocurrencies such as Ripple, EOS, Bitcoin, Ethereum, and other crypto coins. Other than these, the payment gateway that accepts bitcoins is known as the bitcoin payment gateway. The crypto payment network enables merchants and users to promote cryptocurrency payments effortlessly. The transaction is not only easy but also stimulates the speed of the transactions.
By developing a blockchain-underpinned crypto payment gateway, several users and merchants can start an account on your payment platform. Therefore, several entrepreneurs and startups are planning to build a secure crypto payment gateway platform among the top crypto payment platform providers.
How Does a Crypto Payment Gateway Work?
At present, there are several crypto payment gateways existing in the market. However, only a few are growing and gaining prominence with their desirable features, user-friendly interface, and security features. PayBito has recently gained global recognition for its white-label crypto payment gateway platform which is currently trending among merchants and retailers. However, before opting for a platform, it is important to understand how it works.
The Crypto payment gateway mechanism is similar to a conventional payment gateway. However, in this case, there is no physical wallet or credit card, and the entire function is operated digitally. Businesses need to open a merchant account to receive payments as cryptocurrencies. These wallets can be multi-currency or single-currency wallets. Since these wallets have no chargebacks, the transaction process does not take much time.
1. When a user of the platform clicks on the “place the order” button at the time of check out. The web application or browser instantly encrypts the details of the payment. Moreover, the crypto payment transfer details of the transaction to the web server of the merchant through an SSL connection.
2. Once all the information related to the user’s crypto payment is received by the merchant, he sends all the details to the admin of the platform using an encrypted SSL connection. Thereafter the admin of the crypto payment gateway sends all the details to the payment processor.
3. The receiver then receives a payment request, and thereafter sends a response code. The code consists of all the information required about the status of the transaction.
4. Thereafter the crypto payment processor sends a response code to the payment gateway and the process continues.
5. Lastly, the application displays the information and shares that the payment is completed.
Why Should You Build a Crypto Payment Gateway for Your Business?
Surveys say that by the end of 2020, 50 million people owned bitcoin wallets, and this is increasing ever since. Now that we know cryptocurrencies are gaining prominence around the world, it is important to understand why developing a crypto payment gateway will enhance your business.
1. Secure & Private Transactions
One of the major issues with digital platforms is hacker threats. Online banking and wallets are extremely vulnerable to such malicious activities. Therefore, it is important to look for a gateway that is secure and suits your needs. Since cryptocurrencies are backed by blockchain technology, it makes your transactions private and secure in comparison to other digital platforms. Since the platforms are decentralized, the customers do not need to share their personal information for transactions. Moreover, every transaction in the network is encrypted. Thus, keeping your payment gateway protected from hackers.
2. Cost-Effective for the Long Run
The majority of digital wallets charge their users for conducting transactions. Credit cards have 3% processing fees for every transaction you make, while sometimes the fees range up to 5% of your amount. Online payments may be convenient, however, they can be costly in the long run. Cryptocurrency, on the other hand, is cost-effective as it does not allow any third party or a centralized authority to approve your transactions. All the transactions are directly between the sender and the receiver. Since it saves a lot of money, a crypto payment gateway is preferred by crypto users.
3. Quick and Easy Transactions
Bank payments go through a few processes before approving the transaction. Usually, the bank takes three to five business days to complete the transaction. This may further delay if there are issues raised, or the customers have disputes. With a crypto payment gateway, you have no stress and delays as the transaction is completed within minutes. Since there are no third parties all the amount enter directly into your wallet. Moreover, crypto transactions are final, and no one can alter them. Blockchain technology checks for sufficient funds before making a transaction thus reducing the risks of disputes.
4. Global Marketplace
Cryptocurrency is widely used around the world and is not limited to borders. Since there is no centralized authority, and no regulations imposed so far, users are free to use it to buy or trade from any country in the world. With a simple mobile and internet connection, users can make crypto payments to merchants that accept cryptocurrency. Small businesses and large merchants can all enter the global market with a simple crypto payment gateway.
5. Huge Customer Base
Cryptocurrencies help expand your business globally and increase your customer database. It also helps to reach new customers in the procedure. Since the crypto payment gateways are secure, it helps you to reach customers who feel hesitant to use cryptocurrencies. Several countries allow cryptocurrencies and encourage their citizens to use them as local currency. Customers who do not have a bank account but own cryptocurrency can use the gateway to shop and make payments.
The world is constantly changing, and with time, your business must adapt to the new normal. With a crypto payment gateway, your business will reach new heights, attract customers that support crypto usage, and your business will be prepared for the digital age with confidence. If you are planning to transform how your business works, try to develop a crypto payment gateway today.