Cryptocurrencies have opened new avenues all over the world! With customers becoming more tech-savvy, they’re busy looking for new ways to spend their crypto earnings.
However, due to the lack of knowledge concerning cryptocurrencies, many small-scale business owners are yet to adapt to this new-age payment method, missing out on the potential of increased revenues.
This is where crypto payment gateways come as an option to bridge the gap for merchants to accept online payment options for their goods and services.
Wonder what they are? Continue reading as we explore the new-age payment gateway in the sections below.
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As the name suggests, a crypto payment gateway acts as a processor of payments for digital assets. They work in a similar manner as the traditional payment processors and gateways used by bank credit cards.
For instance, if you’re an online merchant with an eCommerce business, it’s evident that you already accept all major cards as payment methods for your products and services. However, with a crypto payment gateway, your business gets a chance to add cryptos as a payment option (especially for tech-savvy customers) on their website.
Similar to how they’d do for a bank transfer or credit card payment, they’d now be able to pay using USDT, ETH, or BTC, among many other cryptocurrencies.
These gateways act as a real-time medium to receive crypto payments for fiat currencies. All of this gets better when your business can add this payment method without registering or maintaining a crypto wallet.
Here’s a small walkthrough of how the crypto payment gateways work in the real world:
Step 1: When a visitor places an order, the gateway records the buyer’s data (details of the wallet address, location, etc.), encrypts, and shares the details with the merchant’s web server via an SSL connection.
Step 2: With the installed payment gateway, the merchant site scans the Blockchain, accessing the nodes and confirming the transaction once it’s validated.
Step 3: Once confirmed, the crypto tokens are transferred to the merchant account, and the payment gateway notifies both parties of the successful transaction.
In addition, the companies involved in the transaction remove any reservations or uncertainties surrounding cryptos and offer more payment options.
Now that you know what a crypto payment gateway is like, let’s explore its primary features in the next section.
While every crypto payment gateway is customized to align with a business’s requirements, a few primary features are standard across every provider. Here, we have explained some core gateway features you’ll find familiar across every crypto payment gateway:
No Intermediaries In Transactions
One of the major hassles for businesses is the payment cycle! They generally face problems accessing their funds received from online transactions as the financial bodies take up to three to five business days to process the funds.
This is where crypto payment solutions step in as an effective method to settle the friction businesses face in their operation. Since no intermediaries are involved, companies can now access their funds in real-time, saving transaction costs.
Freedom From Chargebacks
Chargebacks have been one of the most prominent forms of eCommerce fraud to have increased over the years. Last year, the eCommerce industry faced a loss of $20 billion due to chargebacks and other fraudulent activities.
While many businesses have shut down due to the randomly pressed charges, the others are looking forward to crypto payment gateways as a reliable solution. These payment processors don’t allow refund or chargeback once the crypto payments have been processed. This way, business owners can operate freely without the tension of being at a fraudulent loss.
Many business owners seem to have second thoughts about introducing any new payment system to their platform. One of the primary reasons for the same is the time taken to integrate these systems into their existing platform.
However, crypto payment gateways are built differently! As a result, you don’t have to modify your existing front end to fit these gateways. Instead, these processors allow seamless integration over any existing plugin, allowing businesses to accept crypto payments in minutes.
Effortless Peer-To-Peer Transaction
Integrating a decentralized payment gateway removes the anonymity factor while maintaining the customer’s preference for the transaction. As a result, businesses, retailers, or merchants can receive payments directly from their customers via a peer-to-peer system.
This way, the decentralized system bridges the gap between a business and its customers. The results are secure access and speedy transactions for the payment gateway.
Real-time conversion of value
One of the primary reasons why many businesses have tried staying aloof from cryptocurrency is for the volatility that it brings along! Given how the values rise and fall, many business owners fear accepting them as legal tender.
In such scenarios, the real-time conversion feature of crypto payment gateways comes into the picture. Prominent payment processors like Coingate allow users to swap crypto tokens for fiat currencies in real-time. This way, your business is at no risk of losing money to the market’s volatility.
Cryptos are the next big thing for businesses across the world. Now that you know the several possibilities your business could be leveraging, don’t miss out on the possibilities.
Make the most of these tokens without dealing with the volatility or maintaining a token wallet. Instead, sign up for a payment gateway today!