The year 2021 was good for cryptocurrencies, with Bitcoin reaching new all-time highs. El Salvador was also the first country in the world to accept Bitcoin as legal money. To accept cryptocurrency you require a secured system that is different from the usual payment gateways. Here are the top 5 gateways and processors for crypto payments that you can use.
Since bitcoin is becoming more popular in many areas, retailers may want to know how to find a cryptocurrency payment processor or set up a cryptocurrency payment system. It’s still early days for crypto payment processing, but we’ll look at a few options for businesses that want to try out cutting-edge payment technologies.
Why do People Want to Use Cryptocurrency as Payment?
A recent University of Chicago poll found that approximately 13% of Americans exchange cryptocurrency. They do it through various sites that use different gateways and processors for crypto payments. While many cryptocurrency owners enjoy trading to increase their wealth, an influential group remains interested in leveraging the technology for payments, decentralized finance (Defi), and non-fungible tokens (NFTs).
These individuals see cryptocurrency as an asset and an investment in infrastructure that would eventually destroy banks and credit card networks. Another option is for cryptocurrency owners to use their cryptocurrency as money to purchase products and services. Businesses that accept cryptocurrency may be able to exploit a niche if they strategically target these clients.
The Top Five Gateways and Processors for Crypto Payments
Bitcoin can usually be sent from one person to another using crypto apps or QR codes with hashes that can be copied, pasted, texted, or emailed. This is one of the most popular gateways and processors for crypto payments. Payment gateways and similar services add more payment processing options and make cryptocurrency transactions more convenient. Here are some of the most creative ways to pay with cryptocurrency that you can use right now.
CoinGate, which has been around since 2014, is a strong player in the gateways and processors for crypto payments market. In 2018, the company was one of the first Bitcoin infrastructure providers to use the Lightning Network, a solution to the Bitcoin network’s problem of being able to handle more transactions. It helped increase the number of transactions.
CoinGate focuses on e-commerce and manages cryptocurrency payments through invoices. Through an API and an e-commerce plugin, merchants can connect the gateway to their e-commerce platform. Sellers can choose to take cash or cryptocurrency as payment. CoinGate changes fiat money right away. Also, the seller can choose which cryptocurrency they want to be paid with. CoinGate will also automatically change the buyer’s currency if they use a different one. At 1%, the commission is standard for the market.
Bitpay is an American company that was one of the first to build infrastructure for crypto financial transactions. It started doing business in 2011, less than two and a half years after the Bitcoin network did. In September 2013, when the cryptocurrency industry was just getting started, the payment gateway BitPay had 100,000 users and processed 270,830 BTC transactions.
In 2018, there was more than $1 billion worth of transactions. This is partly because the number of B2B customers who use bitcoin as a payment method has grown rapidly. BitPay is a payment gateway that focuses in settling payments for goods and services at a set price through invoices sent by online merchants. Bitpay has a fee of 1% for each transaction.
If a seller prefers to accept payment in fiat money, BitPay allows instant conversion of cryptocurrencies into US dollars, euros, British pounds, and other fiat currencies. Furthermore, merchants can transfer funds from their BitPay accounts to their bank accounts.
CoinPayments is a crypto payment gateway that distinguishes out owing to a large number of coins it supports. Customers can utilize the service to pay for things online using a record number of coins, 1860.
CoinPayments boasts some of the lowest fees in the industry, which gives it a competitive advantage. The service is completed in less than 0.5% of the time. CoinPayments, like other cryptocurrency payment providers, provides users with a shopping cart plugin. API makes it possible to connect a payment gateway.
Commerce by Coinbase
Coinbase is one of the largest places to buy and sell cryptocurrencies. The United States is its main market. In February 2018, Coinbase made the crypto payment gateway. It is widely considered one of the most reliable and popular payment gateways for e-commerce. Like BitPay, Coinbase Commerce is based on invoices for products and services with fixed prices.
Since Coinbase Commerce is marketed as a way for Internet merchants who want to accept cryptocurrency, the payment gateway is trying to work with some of the biggest e-commerce companies. This is how Coinbase Commerce connected its services to Shopify and other e-commerce platforms, such as Magento and OpenCart.
Coinbase Commerce says that taking money from a merchant’s account on the platform doesn’t cost anything. The only fee that comes with a transaction is the miners’ network fee. But recently, many customers have noticed that Coinbase Commerce’s “network cost” is much higher than other platforms. This has made people worry about hidden merchant fees.
AlfaCoins does charge 0.99% transaction fees rather than the typical 1%, but that 0.01% is unlikely to be enough to impact the choice to use them as a crypto gateway. Rather, you will be drawn to AlfaCoins’ flexibility.
AlfaCoins gives you much power over the outcome of a transaction. What about that 0.99% service charge? Everyone will receive limited volatility protection, which will freeze the currency rate for 15 minutes after an invoice is generated. The CoinSplit function allows you to assign a portion of an invoice to a specific cryptocurrency while paying the rest in another currency. This allows retailers to select how much cryptocurrency exposure they want in any transaction.
The rise in demand for crypto processing services shows that companies need them because crypto processing is better than traditional banking services in many ways. Consider yourself an early adopter of what could be a significant change in payment technology if you plan to accept cryptocurrency as payment for your goods or services.
Lastly, the high number of fake chargebacks is one of the most confusing problems that internet merchants still have to deal with. This is a serious challenge for gateways and processors for crypto payments. Chargebacks are not possible in crypto processing since blockchain transactions are permanent and can only be done by the owner of the cryptocurrency using a private key.