A cryptocurrency payment gateway is similar to a Point Of Sale system where payments are processed. A payment gateway’s primary function is to process digital transactions by transferring the sender’s funds & data to the receiver.
Accepting bitcoins and altcoins as a payment brings in a lot of advantages for businesses. Think of this: Payments through credit cards are usually expensive. And, banks or payment processors charge a fee for processing the transaction.
Crypto payments bring such transaction fees to less than 1 percent. Moreover, bitcoin transactions are irreversible, meaning, there is no open door for false chargebacks or returns.
Defining Crypto Payment Gateway
A crypto payment gateway allows merchants/retail stores to accept transactions in bitcoins and altcoins. In recent years, we have witnessed many payment processors that facilitate the buying and selling of popular cryptos like Ethereum, Ripple, Tether, Litecoin, and Bitcoin Cash.
“A quick tip: Since the crypto market is an extremely volatile one, businesses accepting cryptos as payments may convert them into fiat regularly.”
Why Businesses Need Crypto Payment Gateway?
There are numerous reasons that an enterprise could benefit by adopting cryptocurrencies as a payment option.
- Businesses could offer existing customers new payment methods
- Attract new customers who prefer using bitcoin and altcoins to pay for their e-commerce purchases, goods, and services
- Companies could set up a discreet and trusted payment method for customers (no credit card or bank statements and all)
- Crypto payments are far more secure than the traditional ones and are retained on the blockchain network indefinitely
- Reduce the payment costs that come with other methods such as credit cards and banking transactions
- Play a major part in the cryptocurrency revolution
Above all, traditional payment gateways are charging heft transaction fees, in particular for cross-border payments. So, now is the time to replace the traditional systems with newer, reliable, trustworthy crypto payment gateways.