When you plan for cryptocurrency exchange development, getting the funds is essential. If either of these options fails, you will have no money to keep your company afloat. Bitcoin has come on the scene in the last few years!
What Is a Crypto Payment Gateway?
Crypto payment gateway is a payment processing solution that enables merchants to accept cryptocurrencies as payment. The gateway converts the cryptocurrency into the equivalent fiat currency, which is then deposited into the merchant’s account.
It provides an easy and convenient way for merchants to accept payments in cryptocurrencies. Also, it offers a simple interface that allows customers to pay with their preferred cryptocurrency while providing security and peace of mind of knowing that their money is safe.
Crypto payment gateway is a reliable and secure payment processing solution that helps merchants to accept payments in cryptocurrencies. It offers a simple interface and superior security, making it an ideal choice for businesses of all sizes.
- The Global Crypto Payment Gateway market will grow at a CAGR of more than 22.8% between 2022 and 2030.
- According to Demystifying crypto, using Visa’s crypto-backed card, $2.5 billion in crypto payments were made in the first fiscal quarter of 2022 alone.
- According to 39% of consumers, cryptocurrency should be used for payments rather than just investment.
Traditional Payment Gateways Vs. Crypto Payment Gateways
There are two payment gateways- traditional and crypto. Both have their pros and cons. Let’s know the key differences between the two:
Transaction Fees
Traditional payment gateway providers typically charge a 2-3% transaction fee. On the other hand, crypto payment gateways don’t have any transaction fees.
Chargebacks
Chargebacks are a common issue with traditional payment gateways. When a customer disputes a charge, the provider refunds their money, and the merchant is left empty-handed. Crypto payment gateways don’t have this problem because all transactions are final.
Security
Crypto payment gateways offer more security than traditional ones. This is because they use blockchain technology, making it difficult for hackers to steal data.
Speed
Traditional payment gateways can take days or weeks to process payments. Crypto payment gateways are much faster and usually process payments in less than an hour.
Accessibility
One of the main advantages of traditional payment gateways is that they’re available worldwide. However, only some countries have access to crypto payment gateways.
Volatility
Cryptocurrencies are volatile, which means a transaction’s value can vary depending on the market. Traditional payment gateways don’t have this problem because they use fiat currencies.
Benefits of Crypto Payment Gateway 2022
Cryptocurrency is becoming more popular daily, and as a result, more businesses accept it as a form of payment. If you still need to use a crypto payment gateway, you’re missing out on its many benefits. Here are a few benefits you can enjoy integrating a crypto payment gateway in your cryptocurrency exchange software development:
Increased Security
When using a traditional payment gateway, your sensitive information resides on their servers, which puts your data at risk of being hacked or stolen. However, when you use a crypto payment gateway, your information is stored on the blockchain, which is much more secure.
Lower Fees
Another benefit of using a crypto payment gateway is that they often have lower fees than traditional providers. Because they don’t have to deal with the same regulation and compliance costs. As a result, they can pass these savings on to their customers through lower fees.
Faster Payments
If you’ve ever tried to make an international bank transfer, you know how slow and expensive it can be. With a crypto payment gateway, payments are nearly instantaneous and far less costly. The blockchain doesn’t rely on slow and outdated banking infrastructure.
Greater Privacy
When you use a traditional payment gateway, your personal and financial information is shared with the merchant. However, your information is private when you use a crypto payment gateway because all transactions are pseudonymous and can’t be linked back to your identity.
More Payment Options
Traditional payment gateways only allow you to pay with a limited number of methods. However, with a crypto payment gateway, you can often pay with any cryptocurrency you want. It gives you more flexibility and choice regarding how you want to pay for goods and services.
Increased Acceptance
As more businesses accept cryptocurrency, spending your digital assets becomes easier. With a crypto payment gateway, you can shop at any merchant that accepts cryptocurrency without worrying about whether or not they’ll get your specific coin.
Better Exchange Rates
If you live in a country with volatile currency, you know how frustrating it can be to try and make purchases when the exchange rate is constantly changing. With a crypto payment gateway, you can lock in an exchange rate at the time of purchase.
Types of Crypto Payment Gateway 2022
There are many different types of crypto payment gateways, each with advantages and disadvantages. Here are some of the well-known crypto payment gateways:
Coinbase
Coinbase is one of the most preferred cryptocurrency exchanges, and its payment gateway is also one of the most popular. It allows you to buy, sell, store cryptocurrencies and make payments.
BitPay
BitPay is one of the forerunners and most established crypto payment processors. It allows you to accept Bitcoin payments and convert them into fiat or other cryptocurrencies.
CoinGate
CoinGate is a Bitcoin payment processor that supports various currencies and countries, including Europe, Australia, Japan, and more! The main advantage of CoinGate is that they offer quick purchase options for those who want to purchase Bitcoin using card payment.
GoUrl
GoUrl is another cryptocurrency payment gateway that allows you to accept payments in Bitcoin and various other cryptocurrencies. It also offers a wallet service used to store your earnings.
Closing Thoughts
2022 is evolving to be a big year for crypto payments, with more and more businesses looking to adopt this new technology. If you are considering setting up your crypto payment gateway, this guide is for you.
Pyramidion Solutions is a leading cryptocurrency exchange development company that can help you create your crypto payment gateway. We house the industry-best Blockchain developers adept at using the latest technologies and trends.
Contact us today to find out more!
