All you Need to Know About Crypto Payment Gateways
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Blockchain has revolutionized major industries like healthcare, retail, entertainment, supply chain, etc., and it is rapidly making its way into the payment industry. The modes of payment are evolving fast, from physical currencies to digital money to cryptocurrency, and with that the payment systems also keep evolving with time. Although the traditional payment systems are effective in many ways, yet they have major limitations, such as delay in a cross-border transaction, lack of automation, and the involvement of intermediaries. Businesses across the world do realize these setbacks. Moreover, they also look for a better payment system to improve certain areas like the supply chain and retail, where it’s crucial to maintain a balance between the flow of goods and money.
Decentralized payment gateways have emerged to resolve these issues and provide merchants with a robust payment system. Powered by blockchain, crypto payment gateways gathered much hype with their ability to enable the payment and acceptance of cryptocurrencies on a transparent network. Like other industries, the payment industry also utilized the native abilities of blockchain to ease up the way crypto payment is done.
Crypto payment gateway is a perfect example of an innovative payment system prevalent among other digital payments alternatives, and enterprises are adopting it on a high scale. It allows users to make and accept payments in cryptocurrencies. Let’s dive deeper to understand how the crypto payment gateway works, its features, and its benefits. In a nutshell, we will provide answers to the following questions:
- What is a crypto payment gateway?
- What are the benefits of a Crypto Payment Gateway?
- How does a crypto payment gateway work?
- What are the main features of a crypto payment gateway?
- What kinds of crypto payment gateways are relevant today?
- How can LeewayHertz help you with Crypto payment gateway development?
What is a crypto payment gateway?
A crypto payment gateway is a dynamic payment processing platform that allows merchants or vendors to accept payments in multiple cryptocurrencies without risking security. For users, it facilitates direct payment from their cryptocurrency wallet to another. In addition to its core functioning, these payment gateways also bear the responsibility to safely transfer the payer’s sensitive wallet-related data to the merchant’s software. With more businesses looking for the most gainful, secure, and instant payment modes, this payment network is increasingly adopted in all-sized organizations.
The crypto payment gateways are built on the blockchain ecosystem that serves benefits like immutability of records and transparency in the transactions. Moreover, the decentralized nature of blockchain eliminates intermediaries such as bank from the payment procedure, which improves the transaction speed and shorten the payment processing steps. This system ultimately encourages more people to use digital currencies and contributes to the growing popularity of decentralized gateways.
Crypto payment gateways offer a few unique advantages to both the customer and merchant apart from quickly validating the transactions and removing third parties from the payment system. Following are some of the must-have components of a standard crypto payment gateway:
User sign-in/sign up
My wallet feature with withdrawal functionality
Deposit and withdrawal history
API key generation
View user deposit and withdrawal history
Merchant payment history
Content management system
What are the benefits of a crypto payment gateway?
Freedom from chargebacks
Once the cryptocurrency payment is processed through the payment gateway, it doesn’t allow chargeback or refund. This feature attracts entrepreneurs who own high-risk businesses.
Unlike centralized payment gateways, decentralized payment gateways neither ask for registration nor KYC (know your customer) for verification purposes. Instead, it allows users to join the network anonymously. Anonymity is beneficial for vendors who sell digital assets and are concerned about privacy.
With no intermediaries, crypto payment processing becomes extremely fast, which takes even less than 10 seconds. It allows merchants to accept crypto and then quickly exchange them to fiat anytime.
How does a crypto payment gateway work?
Understanding the mechanism of crypto payment gateway is not difficult for those versed with traditional payment gateways. Crypto payment gateways are powered by blockchain technology. They replace the credit card with a digital wallet that requires merchants to open a merchant account to accept payment in cryptocurrencies. Thus, the transaction occurs on a decentralized peer-to-peer network where nodes exchange payment data, perform validation, and send them to the distributed ledger. Note that the wallet address here serves as an identity for both parties involved in the payment process.
Whenever a block containing data is added to the chain, blockchain keeps the transaction details saved and ensures the transactions’ immutability simultaneously. Hence, a crypto payment gateway allows people to send crypto coins for a particular product or service through a decentralized payment model. Below are the steps that explain how the cryptocurrency payment gateway operates in the real world.
- When a user places the order, the application records payer’s data (such as wallet address, etc.), encrypt it and send the details to the merchant’s web server via SSL connection.
- Using the integrated payment gateway, the merchant scans the blockchain where nodes validate and confirm the transaction.
- Once confirmed, the coins are transferred to the merchant account, and the payment gateway will notify both parties about successful payment the moment verification is done on his end.
- The cryptocurrency payment gateway also allows the merchant to convert coins into fiat anytime at the real-time value of the currency.
This way, merchants can accept payment in different cryptocurrencies and deposit funds into their merchant account in a wide variety of fiat currencies.
What are the main features of a crypto payment gateway?
Although the features of a crypto payment gateway are customized according to the business needs, the following are the must-have features of an advanced payment gateway solution.
Merchants, retailers, and businesses receive payment directly from the customers across a peer-to-peer system by integrating a decentralized payment gateway into their existing payment model. This attribute speed up the transaction time brings two major benefits; speedy transactions and secure access to the payment gateway.
The cryptocurrency payment solutions eliminate the role of third parties and mediators from the payment system. So, the payment directly reaches the merchant from the customer’s wallet, which avoids high transaction costs.
While a fiat transaction requires 5 to 15 days to complete, the crypto transaction takes a few minutes. Such a faster speed of transactions helps all sized businesses (small, medium, or large) to complete payments on import and export of goods quickly.
Cryptocurrency payment gateways are easy to integrate into an existing application. Merchant can integrate the crypto plugin to their desired application and start accepting payment in cryptocurrency.
The Crypto market is highly volatile, where the value of currencies can rise or fall quickly. In such scenarios, the real-time exchange feature makes a payment gateway capable of converting coins into fiat at any time. Some exclusive decentralized payment gateways move a step further in embracing advancement, and they avail live price charts and other market information on the platform itself.
Decentralized payment gateways are fully compatible with different operating systems; Android, iOS, and Windows. Merchants don’t need to configure their device or application specifications to integrate the payment gateway into it.
Auto Settlement option
With a flexible auto settlement option, one can easily connect the payment gateways to exchange (s) to instantly convert cryptocurrencies into mainstream currencies, stable coins, or fiat. For example, the user can exchange coins for USD, TUSD, USDT, and USDC by integrating the payment gateway to prominent crypto exchange platforms like Binance and Bittrex.
Many renowned non-profit organizations such as UNICEF and the American red cross have started accepting cryptocurrencies as donations due to the growing prevalence of digital currencies among people. This trend makes it important for cryptocurrency payment gateways to offer donation features. This feature should show some essential details to the payer like wallet address, list of currencies, QR code, etc.
What kinds of crypto payment gateways are relevant today?
Based on the demand, the digital wallet is customized to support either single currency or multi-currency. A perfect crypto payment gateway should provide customers with many options to make crypto payments using QR code, NFC, and URL for their convenience. Also, it should complete transactions in mere seconds to simplify the payment operations with the real-time settlement. At present, two types of crypto gateways are relevant among businesses which are explained below.
DeFi crypto payment gateway
DeFi crypto payment gateway provides users with full control over their funds via private keys. These kinds have non-custodial characteristics and are embedded with exclusive security to offer ease of use. Together, users enjoy a transparent financial ecosystem with no third parties involved in the whole payment process.
Multi cryptocurrency payment gateway
As the name suggests, a multi-cryptocurrency payment gateway allows merchants to accept multiple cryptos as payment from buyers and allows buyers to make payments in different cryptos. This payment gateway is essential for merchants involved in international trade who accept payment from people worldwide with zero network fees. Additionally, a multi-crypto payment gateway eliminates the need for any intermediates, like other blockchain-based payment gateways and wallets.
Some of the popular crypto payment gateways:
How can LeewayHertz help you with crypto payment gateway development?
At LeewayHertz, we develop secure crypto payment gateways for enterprises and startups. We also integrate these gateways into existing payment solutions of businesses. Our blockchain experts are well-versed with the latest technologies required to develop feature-rich crypto payment gateways for business. For the development of a crypto payment gateway, we use the following technology stack.
- React JS for the front-end development.
- Java for Android development
- Swift for iOS development
We use back-end programming languages like Python, PHP, etc., database servers, and web frameworks to develop blockchain-based payment solutions.
Smart Contract Development
Our services related to crypto payment gateway
To provide you with a robust and secured Crypto payment gateway system, our team delivers additional services. Through customization, you can further add any features as per your requirement. Some of our crypto payment gateway related services are:
Crypto wallet development
Our team develops a secure crypto wallet to help you provide your users with the facility like the ease of checking crypto balance in their account, saving cryptos, and monitoring the existing currencies. We also make sure this crypto wallet is integrated well into your crypto payment gateway to allow your users to send and receive multiple cryptocurrencies quickly.
We develop secure and responsive mobile applications as per the specific needs of your business. It performs the entire functions of a desktop-based crypto payment solution. With mobile apps, your users can log in to their account and accept payments and convert cryptos instantly from anywhere, anytime. All they need is correct login details.
Our team develops a unique and customizable API to automate the payment method. Besides payment transactions, this API is equally useful for managing non-payment facilities.
Multiple payment options
We develop crypto payment gateways that allow your users to convert fiat to cryptos irrespective of their payment medium. It can be credit cards, debit cards, wire transfers, and even other crypto coins.
We offer decentralized payment gateways that support payments in multiple cryptocurrencies, including Bitcoin, Ether, ADA, AVAX, and more. It helps your users to accept and make payments using any cryptocurrency they want.
Owning a cryptocurrency payment gateway that is designed according to your business specifications is undoubtedly valuable. Organizations that plan to expand their scope of operations must integrate blockchain-based applications or decentralized solutions into their existing payment system. With its benefits, such as instant transaction, multiple wallet integration, and high security, merchants can drive a lot of attention from crypto enthusiasts.
If you are looking for a company to develop a cryptocurrency payment gateway, contact our blockchain experts. We develop diverse customized, secure, and multi-currency wallet and decentralized payment solutions which are robust and easy to set up.
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