Bitcoin & crypto payment gateways enable merchants to accept bitcoin and other crypto transactions.
Most of these payment processors now allow the purchase and sale of many other altcoins, including Ethereum, Litecoin, Ripple, and Bitcoin Cash.
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Why Customers Want to Use Crypto?
According to a recent University of Chicago survey, approximately 13% of Americans trade in cryptocurrency.
While many cryptocurrency holders enjoy trading to increase their wealth, there is still a sizable community interested in using the technology for payments, decentralized finance (DeFi), and non-fungible tokens (NFTs).
They see cryptocurrency not only as an asset, but also as a great addition to existing infrastructure that eliminates the need for banks and credit card networks.
In other words, some cryptocurrency owners want to use their cryptocurrency as a currency to purchase goods and services. Businesses that accept cryptocurrency may be able to exploit a niche if they court customers strategically.
The best cryptocurrency payment processors
There are many such projects on the market, but as is customary, only a few of them are at the forefront.
These crypto payment gateways are responsible for providing high-quality services to their customers.
Here is a list of the best cryptocurrency payment gateways:
- Bitpay
- CoinsPaid
- Coinbase
- CoinGate
- Coinpayments
What are crypto payment gateways and how do they work?
Cryptocurrency payment gateways are digital currency processors that allow merchants to use cryptocurrencies as a payment method. These are being developed along with the implementation of blockchain technology in various industries, like healthcare, academics, and supply chain management. Businesses that want to accept cryptocurrencies instead of fiat currencies rely on crypto payment gateways to operate.
A cryptocurrency payment gateway is a service that allows merchants to accept digital currencies as payment for goods or services. We will explain the role of crypto payment gateways in the cryptocurrency market, their advantages and disadvantages, and how they work.
What is a cryptocurrency payment gateway?
Crypto payment gateways like BitPay, PayPal and Coinbase Commerce help businesses receive cryptocurrency payments. In return, businesses get regular currencies in their bank accounts. This way, companies can offer customers alternative payment options, which removes uncertainties concerning cryptocurrencies.
Crypto payment processors are not required to receive digital currency payments. That said, merchants can use their personal wallets to accept cryptocurrencies. Nonetheless, crypto payment gateways make it easier for businesses to accept cryptocurrency as payment alongside regular fiat money and settle transactions quickly.
Custodial and non-custodial are two types of crypto payment gateways. In the case of custodial crypto payment gateways, the profit made by the merchants is placed into their account, and they can start withdrawing funds to their wallets. Noncustodial crypto payment gateways, on the other hand, do nothing more than process the payment and promptly transfer the profit to the merchant’s wallet.
Bank accounts and the appropriate payment system are linked through a fiat payment gateway, which is restricted to accept only national currencies like the dollar, euro, etc., and cannot serve as a fiat-to-crypto payment gateway. Fiat payment gateways approve or reject bank card and electronic wallet payments based on customers’ bank card limits.
How does a crypto payment gateway work?
- When a customer buys something from a store, website or an app, they can choose to pay with cryptocurrencies.
- This means that they will be locked into a transaction window during which the market conversion rate of the cryptocurrency they want to spend vs their flat currency ( dollar, euro or any other currency).
- The payment is then converted into flat currency by the crypto payment gateway and deposited into the merchant’s account.
Advantages and disadvantages of crypto payment gateways
There are some advantages to using a crypto payment gateway instead of a traditional one. For example, crypto payments are settled instantly, and there is only one intermediary involved in the process. This can improve the overall customer experience. In addition, merchants are protected against chargeback fraud thanks to transparent blockchain networks.
Crypto payment gateways are the intermediaries between merchants and customers; therefore, the settlement does not take place in a fully decentralized manner. Also, if the service provider’s business is interrupted, merchants may be affected, such as delayed payments, until issues with crypto payment processors are fixed. Or if a crypto payment gateway gets hacked, merchants also lose their funds.
Another drawback is that using a crypto payment gateway is more expensive than making payments directly on the blockchain because they operate as middlemen and add their own costs to the transaction fees incurred on a blockchain network.
Crypto payment gateways are organizations that handle payments. They need to be trustworthy and provide good quality service that is secure against potential cyberattacks.
Do Binance and Coinbase have a payment gateway?
Both Binance and Coinbase offer crypto payment gateways. This means that merchants can create their own checkout page using APIs provided by both exchanges. An API is a software intermediary that allows communication between two applications.
Binance vs. Coinbase: How do they compare?
Binance offers a payment option called Binance Pay to companies that are friendly to cryptocurrencies. By displaying the store’s unique QR code, merchants can set up Binance Pay in their physical location for a contactless, secure cryptocurrency payment experience. They can also integrate Binance Pay into their online store for a borderless transaction process, giving consumers more payment options.
Binance Pay Merchant Program members just need to set up a Merchant account to accept crypto payments. Alternatively, businesses can receive cryptocurrencies via Binance Pay with the help of channel partners.
Coinbase’s crypto payment gateway is called Coinbase Commerce and supports ten digital currencies, including Bitcoin.
Payments are automatically converted to USD by Coinbase Commerce, and Coinbase does not have any access to the funds received by merchants, meaning that if a 12-word seed phrase is lost, Coinbase cannot recover funds. Also, Coinbase charges a 1% transaction fee for receiving crypto payments.
Are crypto payment gateways safe?
Before selecting any cryptocurrency payment gateway, merchants should research how service providers store cryptocurrencies and subsequent fiat payments. Other factors to consider include transaction fees, cryptocurrencies supported and a history of hacks and scams suffered by the platform.
It is also important to check if a crypto payment gateway provides customer support in case of disruption. Furthermore, it is crucial to verify each candidate’s reputation before making a decision. To do this, go to specialized review websites and read what other people say about their interactions with various service providers.
Best Cryptocurrency Payment Gateways for Ecommerce
In addition to Bitcoin, these crypto payment processors can help retailers by accepting Ethereum, Ripple, Litecoin, and other significant cryptocurrencies.
Coinbase
Coinbase is one of the world’s largest cryptocurrency exchanges and also offers crypto payment gateway services. The Coinbase Commerce gateway is not only fast, but also allows merchants to receive payments securely and without any middlemen. The platform is available in more than 100 countries worldwide, with supported payment methods varying by country.
However, some of the most common methods include bank account, deposit, debit card, credit card, PayPal, and 3D Secure credit card. For online stores looking for a reliable crypto payment solution, this gateway offers integrated services for Shopify, WooCommerce, Magento, and OpenCart. It supports cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Dogecoin (DOGE), USD Coin (USDC), and DAI.
GoURL
GoURL is a payment gateway for cryptocurrencies that protects the anonymity of its users. Although it does not support direct bank transfers, it only takes 30 seconds to complete the payment.
Even if you don’t have a website, you can receive cryptocurrencies using its Monetiser Online service. However, it will cost you a 3.5% transaction fee, while for payments via Bitcoin or altcoins on a website, GoURL will charge you a 1.5% commission.
Using its Bitcoin Payments plugin, you can easily integrate it with WordPress sites. Registration on this platform is available for free and any Speedcoin payment will not incur any fees.
NOWPayments
OWPayments is a company that helps businesses accept payments in cryptocurrencies. It is known for its low-cost, easy-to-use solutions. The company was founded in 2019 and provides a variety of features, including the ability to convert fiat currencies, a point-of-sale solution, and bulk payment capabilities.
The company’s gateway is compatible with a number of popular eCommerce platforms, such as WooCommerce and OpenCart. Transactions are subject to a maximum charge of 1%.
Blockonomics
Blockonomics is a bitcoin payment processor that is considered to be one of the most advanced. This means that it does not require permission or third-party authentication to support transactions. It is also unique and safe. To pay using bitcoin, you can scan the QR code on the merchant’s website or through digital wallets.
Blockonomics also supports a broad range of different cryptocurrencies because of its built-in interaction with Shapeshift. There is a 1% fee taken by the platform. Some of the most active users of Blockonomics are from major economies, such as the United States, Germany, France, Canada, and the United Kingdom.
CoinGate
CoinGate is a very popular cryptocurrency payment gateway that offers a customer-oriented payment environment for seamless cryptocurrency payment. Apart from cryptocurrencies, it allows merchants to accept payments in traditional currencies like USD, Euro, etc.
This platform supports over 70 cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple. CoinGate stores most cryptocurrencies in secure cold storage and charges a 1% transaction fee on all transactions.
Merchants can integrate it into their websites via an API application programming interface and a plugin for some eCommerce platforms including WooCommerce and Magento. They can withdraw the funds using Bitcoin or SEPA. It is also possible to send invoices generated by CoinGate via email.
Blockchain.info
Blockchain.info is a payment gateway that allows you to use cryptocurrency to pay for things. It also provides services for Blockchain and Bitcoin technology. This includes mining information, mining news, and mining statistics reports. Blockchain.info’s APIs make it easy for enterprises to integrate. However, you need some programming skills to be able to do this.
Spectrocoin
Spectrocoin is a popular gateway currency in industrialized countries because it is a free wallet that allows for the quick exchange of cash. Spectrocoin works well with practically all prominent eCommerce CMS systems, including Magento, OpenCart, PrestaShop, VirtueMart, WooCommerce, and others. One can integrate SpectroCoin APIs on their website to make purchases and transactions in Bitcoins and other currencies. Another unique aspect of Spectrocoin is that it offers a bitcoin debit card.
CoinPayments
CoinPayments transaction costs start at 0.5%. The CoinPayments gateway supports a lot of different coins. They support more than 1200 cryptocurrencies. The gateway accepts payments in various currencies and also offers crypto to fiat conversion services for each currency. CoinPayments is compatible with most popular e-commerce systems, including Shopify, OSCommerce, Magento, and WooCommerce.
5 Best Crypto Payment Gateways for Small Businesses
The best gateways offer currency conversion, have flexible settlement options and affordable transaction fees, and are easy to add to your existing website or online store. Based on our evaluation, the best crypto payment gateways for small merchants are:
- BitPay: Best overall crypto payment gateway for small businesses
- Coinbase Commerce: Best for accepting multi currency transactions
- PayPal: Best for PayPal users
- Shopify: Best ecommerce platform for crypto payments
- ALFAcoins: Best for nonprofits accepting cryptocurrency donations
