Bitcoin payment gateway
What is a Bitcoin payment gateway?
Cryptocurrencies are on the rise today, replacing traditional payment methods in e-commerce. More and more customers are launching Bitcoin wallets and prefer to pay for goods and services with their crypto assets. Payment preferences have changed, forcing merchants to integrate crypto payment gateways and accept Bitcoin. If you're interested in this topic and looking for the best cryptocurrency payment gateways, keep reading!
So, what exactly a Bitcoin payment gateway is, and how it differs from regular gateway solutions? Nothing complicated here. A gateway for Bitcoin is a payment processing technology that allows merchants to accept and process payments in this digital currency.
By integrating a Bitcoin payment gateway into their websites or applications, businesses can expand their payment options and cater to customers who prefer using cryptocurrency for their purchases. It provides a seamless and efficient way to accept and process Bitcoin payments securely.
What is a Bitcoin payment method?
As a payment method, Bitcoin enables users to send and receive funds electronically in a secure and efficient manner. When a customer wants to pay using Bitcoin, they can easily open their cryptocurrency wallet and scan the QR code associated with the merchant's payment account on their website. To ensure security, a two-factor authentication system is typically in place, requiring users to confirm their actions by entering a pin code or using another authentication method. If you want to learn more about the Bitcoin payment method, check out this article for additional details.
How does Bitcoin payment gateway work?
Streamlining cryptocurrency payments and acceptance involves a more intricate process than credit/debit card transactions. To initiate crypto transactions, customers must possess a crypto wallet, while merchants must integrate a crypto payment gateway into their systems.
Bitcoin payment processing is both simple and efficient. The process begins with the customer opening their crypto wallet, scanning the QR code provided on the merchant's website, and confirming the transaction with a pin code or other authentication method. Once the funds are successfully transferred to the designated account, the Bitcoin network promptly recognises and verifies the payment.
Implementing blockchain technology ensures that transactions are securely recorded in a transparent and immutable ledger. While the transaction details are accessible to everyone, no party can alter or falsify the transaction record. This feature enhances trust and reliability in the payment system.
Once the funds are securely credited to the merchant's account, they can convert them into fiat currency or retain the cryptocurrency. If the product or service is tied to a fiat currency equivalent, such as USD, it's important to note that due to the volatility of exchange rates, the typical validity period for an invoice is 7-15 minutes.
Benefits of a Bitcoin payment gateway
If you have an integration with the best Bitcoin payment gateway, both you and your customers can enjoy a range of benefits.
Entering new markets
Undoubtedly, cryptocurrency represents the future of online payment systems, offering many advantages to businesses. By integrating a cryptocurrency payment gateway at the earliest opportunity, merchants can position themselves as industry leaders and reap the following benefits. The decentralised nature of cryptocurrencies ensures that merchants have a universally accepted form of currency, eliminating location-based complications. Embracing the acceptance of Bitcoin and other digital currencies through a crypto payment gateway empowers e-commerce retailers to enter the global market and boost their profitability swiftly. Furthermore, by adopting crypto payments, businesses can sidestep the inconvenience and costs associated with transaction fees and exchange rates.
High processing speed (peer-to-peer)
Bitcoin is one of the first cryptocurrencies to use peer-to-peer technology to facilitate instant payments. This technology allows online transactions to be sent directly from one side to another, bypassing financial institutions. Without third-party intervention, the crypto payment gateway processes transactions almost instantly, and the funds are immediately transferred to the merchant's account.
Selling goods or services online inevitably involves the risk of chargebacks. However, when buyers opt to pay with cryptocurrency, this risk is mitigated since crypto transactions are non-disputable. Additionally, blockchain technology ensures that fund availability is verified before completing the transaction, significantly reducing the likelihood of buyers attempting to make purchases without sufficient funds. Unlike credit card payments, crypto payments cannot be cancelled, which means the business receives immediate and final settlement of all funds.
How to choose a Bitcoin payment gateway?
If you need a cryptocurrency payment gateway to start accepting digital currency on your e-commerce platform, there are plenty of options to choose from. But how to pick out the best crypto solution among payment gateways available?
Here are some key features commonly found in top crypto payment gateways:
- Dynamic currency conversion. The exchange rates feature reduces the risk of currency fluctuations and offsets the transaction fees for international payments. Your customers will see the up-to-date current exchange rates and thereby will make informed purchasing decisions.
- Wide cryptocurrency support. The best crypto gateway provider will process payments not only in BTC but also in a wide range of currencies preferred by your customers, including popular ones like Ethereum (ETH), Litecoin (LTC), and others. It’s of utmost importance for your seamless global expansion.
- Seamless integration. A good payment gateway offers easy integration options, whether through APIs, plugins, or SDKs, enabling businesses to incorporate the gateway into their existing systems or websites without extensive technical knowledge or complex setup.
- Security. Strong security measures are paramount in a crypto payment gateway. It should employ advanced encryption protocols, secure key management, two-factor authentication (2FA), and other security features to protect users' funds and personal information.
- Customisation. Customisation options allow businesses to adapt the payment gateway to their specific needs. This can include features like setting preferred fiat currency conversion rates, generating unique payment addresses for each transaction, and enabling automatic conversion of received cryptocurrencies into fiat currencies.
As you explore the list of best crypto payment gateways, consider the abovementioned features. Choosing the right payment processor for crypto transactions will make your business flourish.
How Corefy can help
If you want to bring your business to the next level, Corefy’s feature-rich solution is here to help. Our platform enables you to accept payments in 400+ methods, including Bitcoin, via 650+ providers. Contact us to know more and get started.
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