Last Updated On 23 December 2024, 10:53 PM EST (Toronto Time)
Digital currencies don’t only serve for trading but are a viable payment option. For example, those who buy Solana can trade it later for profit or use it to pay for goods or services.
From a business perspective, the latter might be an excellent opportunity. Many companies are only joining the trend, so offering a crypto payment gateway can provide a strategic advantage.
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A payment gateway is a mediator between the customer and the merchant, which enables accepting card payments. The buyer provides their payment information, which the gateway then processes and sends to the merchant. These gateways make electronic payment processing simple and user-friendly. You can use physical gateways in your stores, such as POS terminals, or set up a digital payment gateway on your website.
Crypto payment gateways support cryptocurrencies. The range of supported cryptos depends on the platform. They are becoming more popular as more users are paying for online shopping with digital assets.
Here’s an explanation of the entire process:
- The potential customer chooses a product or a service on the website and adds it to the cart.
- During checkout, they are notified how much they need to pay in the chosen cryptocurrency. They provide payment information and initiate the transaction.
- The gateway gathers details and converts the funds into the currency you picked for the payment.
- The money arrives at your chosen wallet. You usually receive crypto payments first. You can then later withdraw funds to a fiat bank account or pick for the withdrawals to be automatic in certain intervals.
Benefits of Using Crypto Payment Gateways on Websites
The main reasons to start accepting crypto payments include the following:
- Global reach. You unlock access to unbanked or underbanked customers and make your products or services accessible anywhere in the world with crypto payments.
- Lower transaction fees than traditional payment methods. Fiat payment gateway providers often charge high fees for transfers. With crypto payments, you can lower that rate to 1% or lower. The more sales you have, the bigger the effects on the savings.
- Security and fraud protection. Blockchains record transfers on a decentralized ledger, and it’s almost impossible to tamper with the data. The payments are finalized, so there’s no risk of chargebacks. Also, the advanced cryptography used to protect the buyer and seller data ensures all vital information stays safe.
- More privacy for the customers. Some buyers appreciate the anonymity that comes with crypto payments. That unlocks access to another pool of customers who don’t like using traditional fiat payments online but might be up for using crypto.
- Faster transactions. If you have international customers, you know it can take days to settle a transaction. Decentralization is how crypto gateways speed up the process, which only takes seconds or minutes. That can significantly affect your cash flow. From the user’s perspective, it’s easy to buy Bitcoin with a credit card and then use it to finalize a payment on your website and receive the desired goods faster.
If the benefits sound appealing enough, it’s time to learn how to add crypto payment gateways to your website.
- Choice of Platform or API
You can pick from multiple payment gateways that support cryptocurrencies. Ultimately, it depends on your preference, so consider factors like fees, supported cryptos, and ease of use.
- Coinbase Commerce. Thanks to the compatibility with WooCommerce and Shopify, Coinbase Commerce is a popular choice in various industries. The payment gateway supports BTC, ETH, and other most frequently used cryptos.
- BitPay. BitPay is a pioneer in the crypto payment processing industry. The platform allows automatic transfers to fiat currencies and supports multiple cryptos.
- CoinGate. APIs are a simple way to integrate a payment gateway into your website. CoinGate offers an API that allows using more than 40 cryptos, ensuring visitors have many options available when paying for your goods or services.
- NOWPayments. NOWPayments supports BTC, altcoins, and stablecoins, with the total number of cryptos offered going over 300. You’ll benefit from a low 0.5% fee and a personal account manager.
- Register and Set Up an Account
It’s necessary to register an account with the chosen crypto payment gateway. The process varies on the platform but generally comes down to this:
- Sign up for an account with a valid e-mail address and verify it.
- Add one or multiple wallets where you’ll receive crypto payouts.
- Browse the dashboard and create a suitable payment link for your wallet and website.
Most platforms offer helpful articles and tutorials that will help you begin using their payment gateways.
- Accept Crypto Payments
Here are the choices you have to set a crypto payment gateway on your site:
- CMS plugins. Some content management systems like WordPress, WooCommerce, or Shopify have free plugins that are ready to use. You can install them in a few clicks and enter the necessary data, and your payment gateway is ready to go.
- API integration. You should get API tokens or keys from the platform you selected. Once you have the suitable code, paste it into your website. The final step includes setting webhooks to send alerts about completed transactions.
- Custom payment buttons. You can customize the button to offer a fixed price, a drop-down menu with several payment amounts, or a slider. Payment buttons look attractive, and you can adjust them to your preferences easily.
- Test the System
The final consideration is testing the system. Some platforms offer a testing environment that simulates a transaction. If that’s not an option, you can always use a small transaction to confirm everything works properly.
Testing is important because it secures optimal user experience. It ensures you detect any bugs on time and confirm a smooth transaction flow. Focus on the simplicity of the process and the time required to confirm a payment. Don’t forget to check if notification settings work. Receiving alerts is vital for site administration. It also helps keep track of the payments and update product information if necessary.
Businesses need to follow the latest trends to stay competitive and maximize profits. Crypto payment gateways are affordable and easy to set up. They don’t mean you have to abandon fiat payments – this is just an additional option for customers.
Many unbanked buyers or those who appreciate more privacy and anonymity will appreciate crypto payments. Your business could benefit from lower fees compared to fiat payments and faster transaction processing. It’s a win-win, and the best part is that it only takes minimal effort to set up a crypto payment gateway on your website.
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