How to Choose a Right Cryptocurrency Payment Gateway for Your Online Business

How to Choose a Crypto Payment Gateway

Running an online business, you may have heard about cryptocurrency payment channels. But what are they and how do they function? And why do you need to have it for your online business?

A cryptocurrency payment gateway is a service that enables you to receive payments or donations through your website, online store, in social networking accounts via cryptocurrencies. A cryptocurrency payment gateway is an intermediary between you and your customers who deal with the conversion of cryptocurrency for goods or services. A cryptocurrency payment gateway will also convert the cryptocurrency to fiat currency if required and then transfer that money into your bank account or wallet.

You would possibly need a cryptocurrency payment gateway for your online business for quite some reasons. Some of the benefits of accepting cryptocurrency payments are:

  • Faster transactions: Cryptocurrency transactions are managed in minutes or seconds, while traditional payment methods such as credit card wire transfers take hours or days.
  • Lower costs: The fees for cryptocurrency transactions are much lower, or even non-existent compared to traditional payment methods that frequently charge high costs, commissions, and interest rates.
  • Wider customer base: Cryptocurrency payments enable you to attract a wider range of customers all over the world, including those who do not have access to traditional ways of payment options like bank accounts or credit cards.
  • More transparency and accountability: Cryptocurrency transactions are stored and authenticated on a public record known as a ledger or the blockchain, making them more accountable than conventional payment methods which tend to be open for fraudulent activities such has chargebacks, disputes, etc.
  • More security and privacy: They are more secure and private than normal payment methods since cryptocurrency transactions use encryption technology known as cryptography to code them and keep the transaction details away from third parties such as banks, payment processors, or intermediaries where you may be required to share your personal or financial information.

The purpose of this blog post is to help you choose the right cryptocurrency payment gateway for your online business. In this article, we will cover the following topics:

  • The factors to consider when choosing a cryptocurrency payment gateway, such as features, fees, security, and customer support
  • What's the difference between a cryptocurrency payment gateway and a traditional online payment gateway
  • How to compare different cryptocurrency payment gateways based on the factors
  • How to integrate cryptocurrency payment gateways with your existing e-commerce platforms, point-of-sale systems, or shopping cart software

By the end of this article, you will have a better understanding of what a cryptocurrency payment gateway is how it works, and how to choose the best one for your online business. Let's get started!

Differences Between Cryptocurrency and Traditional Payment Gateways

If you are an online merchant or a customer, you might be familiar with the concept of a payment gateway. A payment gateway is a service that facilitates online transactions by transferring information between a payment portal, such as a website or an app, and a payment processor, such as a bank or a card network. A payment gateway ensures that the payment is secure, authorized, and completed.

However, with the rise of cryptocurrencies, such as Bitcoin, Ethereum, Ripple, and others, a new type of payment gateway has emerged: a cryptocurrency payment gateway. A cryptocurrency payment gateway is a service that enables online transactions using cryptocurrencies, instead of traditional payment methods, such as credit cards, debit cards, or bank transfers. A cryptocurrency payment gateway allows merchants and customers to accept and send payments in digital currencies, such as coins or tokens.

But what are the differences between a cryptocurrency payment gateway and a traditional payment gateway?

  • The payment method: It is most obvious from the payment method itself that cryptocurrencies are entirely different than a traditional payment gateway, and the type of these systems as such. A cryptocurrency payment gateway lets you accept and send payments in cryptocurrencies including Bitcoin, Ethereum, Ripple, and so forth. A typical payment gateway allows you to have your payments processed, as well as send and accept them, in any fiat currencies like US dollars euros pounds, etc. To make payments through a cryptocurrency payment gateway, you and your customers will need to have an e-wallet, which can house all the different types of digital currencies in it. A standard payment gateway will necessitate cards or a bank account for both you and your customers where industries can use their fiat currencies.
  • The payment network: An additional disparity in the payment network between a cryptocurrency transaction management and a traditional one is the laid-out architecture along with, presenting automatic operational interfaces for each of its customers. Cryptocurrency payment gateways utilize a rather decentralized and distributed network, which is referred to as the blockchain for processing and confirming these transactions. A blockchain can be described as a chain of blocks or several blocks where each system records people's transactions. This data string is maintained by the network and hence consists of computer nodes that validate and record the transaction encrypted in this data string Blockchain is secure, it can be audited reliably and the records are immutable – transactions can't be changed or tampered with. Traditional payment gateway involves a centralized and hierarchical network such as a bank or card network used in making the payments to process and verify transactions. Further, a third party i.e., a bank or card network serves as an institution that is trusted by both customers and merchants, which controls a segment of the transaction process to monitor it to ensure its fairness for all parties concerned.
  • The payment speed: A cryptocurrency payment gateway differs from a traditional one in the following regard; speed of payments. A cryptocurrency payment gateway accelerates and streamlines transactions, as opposed to a traditional payment gateway. Cryptocurrency payment gateway can handle and have a transaction processed in minutes or even seconds depending on the time of confirmation for blockchain. A traditional payment gateway can take anywhere from seconds to a few days just completing a transaction through bank clearance or card network tries. It can also provide instant settlements so that funds are transferred into your account directly after the transaction.
  • The payment cost: The cost of payment is another difference between a cryptocurrency payment gateway and a traditional one. A cryptocurrency payment gateway provides less and more transparent fees than a standard one. A cryptocurrency payment gateway also charges a transaction fee, which is the value of a small percentage or a flat amount that goes to the network verifiers known as miners who are responsible for confirming and recording such transactions on the blockchain. A traditional payment gateway charges several fees including a transaction fee and more, which go to the intermediaries like banks or card networks who process and validate transactions. A cryptocurrency payment gateway can as well provide better exchange rates; hence, it is possible to convert your available cryptocurrencies into fiat currencies or even the other way around but at the best market price. A conventional payment gateway can have negative markups or spreads, so you may lose money when transferring your fiat currencies to other money and vice versa because of these amounts.

Such are some of the key distinctions between a cryptocurrency payment gateway and a traditional one. Understanding these differences can help you determine which type of payment gateway works best for your online business or purchases.

Factors to Consider

When you are looking for a cryptocurrency payment gateway for your online business, you should consider several factors that can affect your business and your customers. Some of the most important factors are:

  • Features: The attributes of a cryptocurrency payment gateway involve its functionality and operability, such as the number or type of supported digital currencies, conversion exchange features that are offered in other forms besides cash functionalities like these among others. You should search for a cryptocurrency payment gateway that has the features you need to achieve your business needs and goals, along with an easy experience for customers. For instance, if you are looking to accept multiple cryptocurrencies then look for a crypto payment gateway that supports many different types of currencies; like Bitcoin Ethereum Ripple, and more. If you want to give different payment choices, make sure that your cryptocurrency payment gateway allows payments through QR codes invoices email links, or widgets. If you are interested in personalizing your payment page, then the cryptocurrency should look for a gateway that provides multiple themes, logos, and languages.
  • Fees: The fees of a cryptocurrency payment gateway throughout pertain to the cost and charges that come with using this particular service for instance, transactionice Large amounts incur large banking costs at home. When you are choosing a crypto payment gateway, make sure it charges low and transparent fees without any extra or hidden costs. It is also advisable to consider the fees charged by different cryptocurrency payment gateways and pick only those that offer a good value for your money. For instance, if you want to avoid transaction fees expenses, then the platform for accepting cryptocurrency payments should be charging a flat fee or percent fee rather than any type of fixed. If you wish to avoid withdrawal fees, ensure that your cryptocurrency payment gateway accepts direct withdrawals either through a bank account or locker because this would mean the process bypasses intermediaries who may charge extra handling costs. To bypass exchange fees, you need to opt for some cryptocurrency payment gateway that can provide real-time or rather beneficial exchange rates instead of delayed.
  • Security: Select a cryptocurrency payment gateway with strong security features, focusing on encryption, authentication confirmation protocols, and proof mechanisms that authenticate the user's request until it is complete. Also, ensure compliance with 3Compliance Backup procedures for eventualities like failures. Consider companies that are believed to comply with industry benchmarks and do not have a reputation as services compromised by hackers or data breaches. 6 Choose gateways, not storing or keeping funds. And upholding privacy and data rights from verification to compliance in protection of bearers protect the customer while protecting their information.
  • Customer Support: Choose the cryptocurrency payment gateway that has very good customer support which is skilled and responsive at all times. test the call answering and consultative services. On top of it choose gateways with 24/7 multilingual support where you can get fast replies through emails, calls, or messages. First of all, try to contact gateways that have experts fully aware and knowledgeable about the entire process which will come in handy for problem resolutions where you can ask them directions on how exactly things work.

How to Compare Different Cryptocurrency Payment Gateways

After determining what factors you should consider when selecting a cryptocurrency payment gateway, such as features, fees of the service gated by it, security and customer support, etc…you ought to compare various payments using cryptos on this basis. With this, you are sure to identify the best cryptocurrency trading platform of your choice that suits all business requirements and objectives and also offers a comfortable atmosphere for customers. Here are some tips on how to compare different cryptocurrency payment gateways based on the factors:

  • Comparison Websites:
    Use G2, Cryptopsps, and Cryptopolitan for detailed insights and comparisons of cryptocurrency payment gateways based on features, fees, security, and customer support.

  • Read Reviews:
    Read user reviews on platforms such as G2, Trustpilot, and Reddit to see real-life opinions of the pros cons, weaknesses, and challenges faced by different cryptocurrency payment gateways.

  • Test Demos:
    Evaluate free trials of CoinsPaid, BitPay, and CoinGate gateway vendors to determine feature sets and usability thereby making sure that the cryptocurrency payment selects can fill your business gaps.

  • Contact Support:
    Engage with customer support through email, phone, chat, or social media to gather information on features, fees, security, and customer support, assessing responsiveness and issue resolution.

Examples of Popular Cryptocurrency Payment Gateways

- CoinsPaid:
CoinsPaid is a versatile cryptocurrency payment gateway supporting over 30 cryptocurrencies, offering features like real-time exchange rates, instant settlements, and high security through encryption and anti-fraud measures. With a flat 0.5% transaction fee and no withdrawal or exchange fees, it's suitable for high-volume transactions, handling over 5 million transactions monthly.

  • Coinbase Commerce:
    Coinbase Commerce provides a user-friendly solution supporting four cryptocurrencies. With features like real-time conversion and payment buttons, it's beginner-friendly. Coinbase Commerce charges no transaction fees and prioritizes security through encryption and non-custodial storage, giving users full control. Ideal for newcomers, it requires no coding skills.

  • PayPal:
    As a global payment platform, PayPal offers a cryptocurrency payment gateway supporting four cryptocurrencies. Charging a 2.9% plus $0.30 transaction fee and conversion fee of up to 2.5%, it's widely accepted for personal use. With robust security measures and 24/7 customer support, it allows users to buy, sell, and hold cryptocurrencies.

  • BitPay:
    BitPay is a multi-currency payment gateway supporting over 15 cryptocurrencies and 150 fiat currencies. Charging a 1% plus $0.25 transaction fee and a 1% withdrawal fee, it emphasizes security through encryption, authentication, and verification. Ideal for multi-currency support, it enables payments in various cryptocurrencies and fiat currencies.

  • NOWPayments:
    NOWPayments is a cost-effective cryptocurrency payment gateway supporting over 70 cryptocurrencies. With features like real-time exchange rates and a flat 0.5% transaction fee, it emphasizes security through encryption and non-custodial storage. Offering customization options, users can create personalized payment pages and widgets, making them suitable for diverse needs.

How to integrate cryptocurrency payment gateways

After you have chosen the best cryptocurrency payment gateway for your online business, you need to integrate it with your existing e-commerce platforms, point-of-sale systems, or shopping cart software. This will allow you to accept and process cryptocurrency payments on your website, online store, or social media account. Here are some tips on how to integrate cryptocurrency payment gateways with your existing e-commerce platforms, point-of-sale systems, or shopping cart software:

Use plugins

Enhance your e-commerce platforms using plugins, pre-made software modules facilitating cryptocurrency payment gateway integration without coding skills. Simply install and activate on websites, though be mindful of potential compatibility issues and limited customization features.

  • WooCommerce: WooCommerce is a free and open-source e-commerce platform that allows you to create and manage online stores on WordPress websites. You can use plugins like Coinbase Commerce, BitPay, or [NOWPayments] to integrate cryptocurrency payment gateways with WooCommerce and accept payments in various cryptocurrencies, such as Bitcoin, Ethereum, Ripple, and more.
  • Shopify: Shopify is a cloud-based e-commerce platform that allows you to create and manage online stores without any coding or technical skills. You can use plugins like Coinbase Commerce, BitPay, or [CoinPayments] to integrate cryptocurrency payment gateways with Shopify and accept payments in various cryptocurrencies, such as Bitcoin, Ethereum, Ripple, and more.
  • Magento: Magento is a powerful and flexible e-commerce platform that allows you to create and manage online stores with advanced features and customization options. You can use plugins like Coinbase Commerce, BitPay, or [CoinGate] to integrate cryptocurrency payment gateways with Magento and accept payments in various cryptocurrencies, such as Bitcoin, Ethereum, Ripple, and more.

Use APIs

Use APIs to facilitate smooth communication between your software and cryptocurrency payment gateways. Customizable and adaptable, APIs interface with e-commerce platforms that involve coding skills along with awareness about security concerns as well as compatibility issues.

  • Stripe: Stripe is a universal online platform for accepting and processing payments in different ways such as credit cards, debit cards, or also through bank transfers. Using the Stripe API, you can connect cryptocurrency payment processing gateways with your Stripe account and accept payments in Bitcoin, Ethereum, or USD Coin. Alternatively, you could use Stripe Checkout or write your own payment page, widget, or button using the new and improved API of the Stripe Elements system.
  • Square: Square is a Mobile payment platform whereby you can also accept and handle payments in different ways like credit cards, debit cards, or cash. You may integrate cryptocurrency payment gateways with Square through the help of Square API, which enables you to accept payments in Bitcoin, Ethereum, or USD Coin. Further, you can utilize the Square Terminal or Square Reader to develop and personalize your payment page widget, and button.
  • PayPal: PayPal is an international online payment system that enables you to receive and process payments in different ways, including using a credit card, debit card, or bank transfer. You can hook up cryptocurrency payment gateways to PayPal using the PayPal API and accept payments in Bitcoin, Bitcoin Cash, Ethereum, or Litecoin. Alternatively, you can use the PayPal Checkout or PayPal Buttons to define and personalize your payment page, and widget buttons.

Use SDKs

SDKs, providing tools and libraries simplify the process without requiring coding skills though customization options are limited.

  • Flutter: Flutter is an open-source mobile app SDK that has enabled the development and deployment of apps made with Flutter in both Google's Android operating system as well as Apple Inc.'s iOS. Using the Flutter SDK, you can incorporate cryptocurrency payment gateways into your development using Flutter and accept payments in several cryptocurrencies like Bitcoin Ethereum Ripple, etc. Alternatively, you can create and customize your own payment page, widget, or button using the Flutter widgets or packages.
  • React Native: React Native is a cross-platform framework that enables you to develop and deploy mobile apps on Android as well as iOS devices. For example, you can integrate cryptocurrency payment gateways using React Native SDK and accept a wide variety of crypto payments like Bitcoin, Ethereum, Ripple, etc. You can also create and design your own payment page, widget, or button using the React Native components or modules.
  • Laravel: Laravel is a web framework that enables the creation and deployment of applications over different platforms and devices. To set up cryptocurrency payment gateways with Laravel and accept payments in different types of cryptos such as Bitcoin, Ethereum, Ripple, etc. you can use the help of this Laravel SDK. Alternatively, you can generate and personalize your payment page with the help of Laravel Blade or Laravel packages.

Conclusion

This article helps you choose a cryptocurrency payment gateway for your online business. A cryptocurrency payment gateway lets you accept payments in cryptocurrency, which has many advantages, such as speed, cost, reach, transparency, and security. You should consider features, fees, security, and support when choosing a cryptocurrency payment gateway. You should also compare and integrate different cryptocurrency payment gateways with your e-commerce platforms, point-of-sale systems, or shopping cart software. You can find examples of popular cryptocurrency payment gateways in the blog post. Choosing the right cryptocurrency payment gateway can help you leverage the crypto industry and stay competitive.