As cryptocurrency continues to rise in popularity around the world, a growing number of merchants are turning to crypto payment gateways as a means of accepting digital payments. These payment gateways provide an easy, secure way for customers to pay with crypto, such as Bitcoin, Ethereum, Litecoin, and many others.
With their low transaction fees and quick processing times, crypto payment gateways offer merchants a reliable way to accept payments without the hassles and fees associated with traditional payment processors.
We took a closer look at the facts behind crypto payments, and the benefits that they offer to so many businesses.
What Is Cryptocurrency?
Cryptocurrency is a digital material that is designed to work as a medium of exchange, using cryptography to secure financial transactions and control the creation of new units. It is decentralised and not backed by any central government or bank. As such, it is considered to be an alternative form of currency that can be used for international payments and global trade.
Cryptocurrencies are not legal tender in most countries, but they are becoming increasingly popular as a way to pay for goods and services thanks to their low transaction fees, fast processing times and security features.
What Are Crypto Payment Gateways?
New Age Crypto Exchange are online platforms that facilitate the exchange of cryptocurrencies for goods and services. These gateways provide merchants with an easy-to-use system that allows customers to pay using their favourite digital currencies. The merchant never has to worry about storing or processing the cryptocurrency, as this is all handled by the payment gateway itself.
How Do Crypto Payment Gateways Work?
Standard payment gateways work by connecting a merchant’s website or app to a payment processor. These processors, such as PayPal or Stripe, then process the customer’s payment and transfer the funds to the merchant’s account.
Crypto payment gateways operate in a similar fashion, but instead of connecting to a traditional processor, they are connected to an exchange that allows customers to purchase cryptocurrency with their credit card or bank account.
Once the customer pays with cryptocurrency, the gateway converts the digital currency into local currency and deposits it in the merchant’s bank account. This process is usually completed within a few hours, making crypto payments an incredibly fast and convenient way to receive payments. Furthermore, merchants can also benefit from lower fees than traditional payment methods as they are not charged any processing fees.
The setup process for crypto payments is typically quite simple, as most gateways offer easy integration options with existing e-commerce platforms. This means merchants can quickly get started accepting crypto payments with minimal effort.
Advantages Of Crypto Payment Gateways
There are a number of benefits that these gateways can offer to merchants, and these include:
Crypto payments are typically much cheaper than traditional payment processors, with transaction fees ranging from 0-1% depending on the platform. This can be a great way for merchants to save money in the long run.
Fast Transaction Times
Crypto payments are processed almost instantly, meaning that customers receive their goods or services without any delay. This is a clear contrast to traditional payment methods, which can take days or even weeks to process.
Crypto payments are secured by advanced encryption technology, making them far more secure than traditional payment methods. This helps to protect merchants from fraud and other malicious activities.
Crypto payment gateways can open up new opportunities for merchants to reach a wider audience and expand their customer base. By accepting digital currencies, merchants can tap into the growing cryptocurrency market, as well as attract customers who may not be familiar with traditional payment methods.
Easy Setup & Integration
Setting up a crypto payment gateway is easy and straightforward, with most platforms offering simple integration options. This makes it quick and easy for merchants to get started accepting digital payments.
Are There Any Downsides To Crypto Payment Gateways?
While the advantages of crypto payment gateways are obvious and attractive, there are a few potential downsides that merchants should be aware of.
Crypto Can Be Volatile
One of the main risks associated with crypto payments is the volatility of the market. The prices of digital currencies can fluctuate quite significantly over short periods of time, meaning that merchants may find themselves at risk of losing money if they are not prepared.
Another potential issue is compliance. Different countries and jurisdictions have different regulations regarding crypto payments, and merchants need to make sure they are compliant with local laws before accepting digital currencies.
Not all crypto payment gateways provide the same level of customer support, which can be an issue for merchants who are new to digital currencies. This means merchants may struggle to find help if they run into any issues or have questions about how the system works.
Lack of Liquidity
The liquidity of digital currencies can also be an issue, as some gateways may not have enough buyers and sellers to provide a smooth payment process. This can lead to delays in processing payments or even failed transactions.
Despite these potential downsides, crypto payment gateways are becoming increasingly popular with merchants as they offer numerous advantages over traditional payment methods. With the right approach and proper research, merchants can make the most of this technology and benefit from its many advantages.
How To Add A Crypto Payment Gateway To Your Business
If you want to start accepting payments in digital currencies, the first step is to choose a payment gateway that best suits your needs. There are a number of platforms available, ranging from simple options like Coinbase Commerce and BitPay to more comprehensive solutions like Ripple’s xRapid or Stellar’s Lumens.
Once you have selected the right platform for your business, you will need to integrate it into your website or app. This process is usually straightforward, with most platforms offering detailed instructions for how to set up your gateway.
Finally, you will need to ensure you are compliant with local regulations and have the necessary licences in place before you can begin accepting payments in digital currencies. Once everything is set up, you will be ready to start taking payments in crypto!
Crypto payment gateways offer many advantages for merchants, from increased customer reach to lower transaction fees. However, there are a few potential downsides that merchants need to be aware of before getting started. Once these issues have been addressed, adding a crypto payment gateway can open up new revenue streams and help businesses stay competitive in the digital age.