A quick guide on Crypto Payment Gateways: Top 6 blockchain solutions that you should consider in 2023
A quick guide on Crypto Payment Gateways: Top 6 blockchain solutions that you should consider in 2023
A quick guide on Crypto Payment Gateways: Top 6 blockchain solutions that you should consider in 2023
Main Takeaways:
- A cryptocurrency payment gateway acts as a bridge between the traditional financial system and the world of cryptocurrencies.
- Сrypto payment gateways come with tons of advantages that will not disappoint any online business – starting with faster processing times (particularly for payments from abroad) and potentially higher transparency and ending with lower transaction fees.
- There are many crypto fiat payment gateways that enable businesses to send and receive alternative payments. We have compiled a list of the top 5 crypto payment services.
What is a cryptocurrency payment gateway?
A cryptocurrency payment gateway is a platform that facilitates the exchange of cryptocurrencies for fiat currencies, as well as the reverse. It acts as a bridge between the traditional financial system and the world of cryptocurrencies.
Сryptocurrency payment gateways provide numerous benefits over traditional payment methods. With faster settlement times and lower transaction fees, businesses can save money and time on every transaction. This makes them an ideal choice for merchants looking to streamline their payment process and enhance their customer experience.
Why did crypto payment processing become a new digital trend? Sure, crypto payment gateways come with tons of advantages that will not disappoint any online business:
Unrestricted global accessibility. Cryptocurrencies are not bound by national borders or traditional banking systems.
Enhanced App Security. In today’s age of digital crime, app security is of utmost importance. Cryptocurrency payment gateways have taken this issue seriously and implemented various measures to protect their customers’ data, ensuring that hackers and scammers are kept at bay.
A straightforward and transparent service. This streamlined process simplifies transactions, enabling businesses and customers to complete payments seamlessly, while ensuring transparency at every step.
Instant crypto-to-fiat exchange. With competitive rates and minimal risk exposure to market volatility, businesses can swiftly convert their received cryptocurrencies into their desired fiat currency, further enhancing financial flexibility.
Independent. There are no third parties involved in transactions so there is no need to depend on any bank or government.
How does a cryptocurrency payment gateway work?
By simplifying the intricacies of crypto fiat transactions, payment gateways empower businesses and customers to embrace the future of finance with confidence and convenience.Here’s a brief overview of how a crypto fiat payment gateway typically works:
- A business integrates the payment gateway into their app, online store or point-of-sale system, ensuring a smooth user experience.
- When a customer decides to make a purchase using cryptocurrency, they choose the crypto payment option. The payment gateway responds by generating a unique payment address or a QR code specific to the transaction.
- The customer then sends the specified amount of cryptocurrency from their wallet to the provided payment address or by scanning the QR code.
- The payment gateway continuously monitors the blockchain network for incoming transactions and verifies the payment once the required number of confirmations is received.
- Once the payment is verified, the payment gateway converts the received cryptocurrency into the desired fiat currency at the prevailing exchange rate.
- The converted fiat currency is then settled to the merchant’s designated bank account. Settlement periods can vary depending on the payment gateway and the financial infrastructure involved.
- After the conversion and settlement process is complete, the payment gateway notifies the customer and the merchant about the successful payment. The merchant can then proceed with order fulfillment, as they would with any other traditional payment method.
Beyond these core steps, certain payment gateways may offer supplementary features such as support for multiple cryptocurrencies, comprehensive transaction analytics, or even built-in wallet services, further enhancing the overall payment experience.
Top 5 Crypto Payment Gateways in 2023
According to the 2023 Cryptocurrency Payments Report, a staggering 67 million customers in the United States have expressed their intention to use cryptocurrency as a means of conducting future transactions. In order to tap into this substantial revenue stream, it is imperative for merchants to promptly adopt and embrace cryptocurrency as an accepted form of payment.
Let’s explore some top contenders in the fiat gateway market:
- MoonPay
- A fast and simple way to buy cryptocurrency
- Fast account verification and upgraded spending limits
- Wide international availability
Cons
- Processing fees are steep compared to many crypto exchanges
- You need to use your own wallet.
2. Wyre
Wyre provides a wide variety of world-class payment APIs to power your fintech application. It offers unparalleled execution and competitive pricing, delivering the perfect blend of efficiency and affordability. Wire transfers can be used domestically or internationally, and they are often required for major purchases like a down payment on a house. Users can use basic payment methods like Google pay, Apple pay, and credit cards.
Pros
- Fast transaction speed
- Zero fees for domestic transfers
- International charges are about 0.75% per transaction
- Users can set-up recurring or scheduled payments
Cons
- Available in limited countries.
3. Coinbase
Coinbase Commerce is Coinbase’s merchant services feature that allows small businesses to accept cryptocurrency as an alternative payment method. As the largest centralized cryptocurrency exchange market in the US, Coinbase supports a long list of cryptocurrency options. Coinbase offers a range of options for accepting payments on your website, catering to different business sizes. Small merchants have the choice to generate invoices, use simple hosted checkouts, or utilize Coinbase payment buttons. For ecommerce stores, Coinbase can seamlessly integrate with platforms like Shopify and WooCommerce.
Pros
- No transaction limits
- Fast and easy account setup process
- Supports 150+ types of cryptocurrencies
Cons
- Payouts require a Coinbase account
- Limited integration options for eCommerce
4. Transak
Transak develops a fiat-to-crypto payment network that intends to make it easier to acquire and sell cryptocurrency assets through bank transfers. It settles transactions without keeping track of the user’s data or cash, and it accomplishes this through the use of a widget interface that can be added to an application in just a few lines of code, which gives users quicker access to payment methods and procedures. Transak operates in more than 100 countries and supports over 60 currencies, allowing users to make payments in their local currency. It is compatible with all major blockchains; however, it is worth noting that their fees range from 0.99% to over 5%, depending on the chosen payment method. Basic payment options such as Google Pay, Apple Pay, and credit/debit cards are available for users.
Pros
- Available in over 100 countries
- Supports over 60 currencies
- Compatible with all major blockchains
- User-friendly interface for easy usage
Cons
- High fees.
5. Simplex
Simplex is a fintech company that provides online merchants with fraud-free payment processing and acts as the credit card processor in the crypto world. Simplex accepts most major credit cards, including VISA and MasterCard. Some virtual, prepaid, and debit cards are also accepted.
Pros
- The networks used for transactions are highly secure.
- Instant purchase of debit cards.
- 24/7 client support.
Cons:
- Limited integration with other apps.
How Lansoft can help?
The crypto payment gateway sector is experiencing rapid growth and development, offering numerous tools and solutions to assist businesses in expanding their customer base and accepting cryptocurrency payments.High results in the implementation of new solutions can be achieved only together with professionals and like-minded people.
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