Cryptocurrency payment processing

What is crypto payment processing?

Crypto payment processing is the handling of transactions made with digital currencies like Bitcoin or Ethereum. As cryptocurrency payments become more widespread, services such as crypto payment processors and crypto payment gateways are gaining traction. Together, they form a growing infrastructure known as cryptocurrency payment processing — enabling businesses to accept and manage payments in digital currencies.

What is a cryptocurrency payment?

Simply put, a cryptocurrency payment is a transaction where crypto is used instead of fiat money. It relies on blockchain technology for validation, making it secure, transparent, and borderless.

Pros and cons of crypto payments processing

Adopting crypto payment systems can bring many benefits, but it also comes with challenges.

Advantages of crypto payment processing

• Independent. Crypto payments are decentralised – they are not controlled by any central authority or institution, which makes such transactions faster, cheaper, and more secure.
• Fast and secure. Crypto transactions are processed quickly, and the blockchain technology used to process them is highly secure.
• Cost-efficient. Because no intermediaries are involved in the process, transaction fees for crypto payments are generally lower than those for traditional payment methods, such as credit cards or bank transfers.
• Globally accessible. Crypto payments can be made from anywhere in the world, and there are no restrictions on who can make or receive payments. This makes it a great option for businesses that operate globally.
• Anonymous. Some cryptocurrencies offer a high degree of anonymity, which can be important for individuals who value privacy and security.
• No chargebacks. Chargebacks, which occur when a customer disputes a transaction and the funds are returned to them, are impossible with crypto payments. This means that businesses don't have to worry about losing money due to chargebacks.

Overall, crypto payment processing offers many advantages, making it a great option for businesses looking to streamline their payment processes and reduce costs.

Disadvantages of crypto payments processing

• Volatility. One of the main features of cryptocurrencies is volatility. It is almost impossible to sell and buy, for instance, Ethereum or bitcoin cryptocurrency at the same price. That is why merchants who want to accept cryptocurrency payments risk receiving less than they intended.
• Scalability. The speed of cryptocurrency systems lags behind their fiat counterparts. The bitcoin network processes 4-5 transactions per second. The throughput of the Ethereum network is up to 30 transactions per second. The Ripple system allows for processing up to 1,500 transactions per second and EOS — up to 4,000. At the same time, Visa can process up to 24,000 transactions per second.
• Regulations. Cryptocurrency is not a legal tender in most jurisdictions, so accepting such payments sometimes creates legal difficulties for merchants. Problems also arise when paying taxes on income or profits that have been received in cryptocurrency.

Should you accept crypto payments?

The demand for crypto payments grows as customers look for faster and more flexible ways to transact online. For businesses, working with a reliable crypto payment provider can open new markets, reduce costs, and improve customer experience.

Key reasons to consider:

• Geographic coverage. Crypto payments solve the problem of payment landscape fragmentation. Users from almost any country can pay for the services or products of companies located in another country. With cards and e-wallets, this is often not possible.
• Reliability. Traditional processors or banks may decline a transaction for many reasons, such as a payment on a casino website. In such cases, cryptocurrency is the optimal solution: a blockchain wallet cannot block a transaction.
• Cost-efficiency. The cost of a crypto transaction is about 1% of the amount.
• Withdrawal speed. Processing of an e-wallet withdrawal can take about a week in some industries. Withdrawing in crypto happens several times quicker.

What is a crypto payment gateway?

A crypto payment gateway or a crypto payment processor is a service or platform that processes payments in digital currencies and allows merchants to accept cryptocurrency payments. It acts as an intermediary and carries out six main functions:

• Registers the crypto holder's or payer's data;
• Converts the amount at the specified exchange rate, if necessary;
• Executes verification (for example, via 3DS);
• Accepts cryptocurrency payments from a buyer;
• Sends transaction data to the blockchain and registers confirmations from nodes;
• Converts the received coins into fiat money (at the merchant’s request);
• Transfers payments to a merchant;
• Provides confirmation of payment processing for both parties.

In short, it simplifies crypto merchant processing and allows businesses to offer more crypto payment methods to their customers.

How does a crypto payment gateway work?

To pay with crypto, the customer only needs the recipient’s wallet address. The process can be done by copying the address into a wallet app or by scanning a QR code. The blockchain then validates the transaction, and both parties receive confirmation.

Types of popular crypto payment gateways

There are two common models of cryptocurrency payment systems:

• Crypto-fiat. In this case, the merchant receives fiat money into his account due to the process called a conversion. The commission is, on average, 1% or more, but this adds regulatory, banking, and exchange risks; also, additional counterparties arise. This kind of business is more profitable and more difficult to run.
• Crypto-crypto. Purchasers make crypto payments, and merchants receive payments in this currency. Thus, the crypto payment processor does not use the banking infrastructure but, at the same time, earns very little because the transaction fees are about 0.5%, of which about 0.1% is spent on trading costs during the exchange.

Both models support modern crypto payment flows, giving businesses the flexibility to attract new customers.

How to choose a crypto payment provider

There are plenty of payment processors for cryptocurrencies, but how to choose the best one? Modern crypto payment platforms go beyond simple transaction handling. They often include features like automated risk monitoring, advanced reporting dashboards, real-time currency conversion, and intelligent routing. These tools allow businesses to optimise approval rates, reduce costs, and deliver smoother checkout experiences.

A good provider should offer a complete crypto processing infrastructure that supports multiple currencies and provides flexible settlement options, whether in crypto or fiat. This ensures that your business can adapt to customer preferences while protecting itself from volatility.

Equally important is understanding how secure the cryptocurrency processor is. Compliance should be at the core: the provider must support KYC/AML processes, fraud prevention mechanisms, and PCI DSS compliance to safeguard both your business and your customers.

When comparing options, it’s essential to evaluate the provider’s position within the broader ecosystem of cryptocurrency payment gateways. Some cryptocurrency payment processors focus only on basic acceptance, while others act as a complete orchestration layer, giving you access to hundreds of local and global payment methods in one place.

Finally, a strong crypto payment processor for businesses is not just a technical vendor but a partner. The right provider will help you expand into new markets, reduce operational risks, and grow sustainably by giving you the flexibility to adopt new coins and scale as demand increases.

How to accept bitcoin payments?

Developing an in-house crypto payment system is complex and costly. A better option is to integrate a ready-made crypto payments processor for businesses, which handles the technical side, supports multiple currencies, and keeps the system updated.

If you want to start accepting crypto without building everything from scratch, Corefy can be your trusted payment processor for cryptocurrency. We enable businesses to accept payments and make payouts via over 550 methods and different currencies, including crypto, via more than 650 providers. Get in touch with our team to know more and find out how your business can benefit from our solutions.