The strength of a business lies in their ability to adapt to the changes that happen around them. It is all about continuously working to implement innovative ideas that contribute to the growth and development of your business. Resistance to change is not the best attitude from a business perspective. In fact, it makes you prone to being left behind as your competitors will be taking over sooner or later. And crypto payment gateway solutions is one of the latest developments happening in the business world. And today, you will learn all you need to know about crypto payment gateways and how they can be that one big step for opening up new pathways for your business.
A Brief History of Cryptocurrencies
We will start by looking back on the history of cryptocurrencies and why they were introduced in the first place. Cryptocurrencies came into existence way back in 2009, with the invention of Bitcoin as the first ever digital currency. The reason behind this invention was the great recession of 2008 and the financial crisis which commoners faced in that era. The common population was greatly dependent on financial intermediaries and mostly banks. And this crisis made them question the reliability and transparency of the banking system as a whole.
And hence many experts started thinking about methods that would make a peer-to-peer transaction possible without the involvement or intervention of banking institutions. But at the same time they wanted a payment solution that would facilitate top notch security in all situations. Then they came up with the idea of making use of cryptography which ensures the highest level of security on a digital network. And this led to the birth of Bitcoin as the very first cryptocurrency. Many people were skeptical regarding the value of a virtual currency which has no physical existence.
Bitcoin’s existence was within the block chain network. Block chain technology was another major invention that happened alongside cryptocurrencies. A block chain is a system that provides utmost security and transparency, making it unable for any third party to manipulate the data that is present there. Decentralisation and transparency were the key features of Bitcoin And this was entirely different from the traditional or fiat currency which was under the authority and control of a centralised banking system.
And over the years Bitcoin managed to break into the mainstream as the value of this digital currency rose and hit an all time high later on. It became the currency of the internet with the advancement in technology. The cryptocurrency concept became widely accepted as more cryptos including Litecoin and Ethereum were invented as the successors of Bitcoin. And now we are in a phase, where we are being pressured to step into the crypto world as the cryptocurrency payment solutions have taken over the business world by a storm.
Traditional payment gateways including the online payment systems have become an integral part of our everyday lives. The online payment system is even more essential if your business entity falls into the category of ecommerce business. But the online payment system also has many problems of its own which include chargebacks, security issues, added fees of cross national payments and many more. And crypto payment gateways can be the one step solution for all these problems.
You can see that many big brands and multinational businesses have started accepting crypto payments already. They already have a huge customer base and a well known brand name. So, why these already established entities are moving towards crypto adoption is a matter we need to discuss. In order to understand what made them take this step, we need to look into the benefits that a business gets by accepting crypto payments from clients.
Lower Transaction Cost: If you already run a business and accept credit cards as a payment method, then you must be aware of the fact that the transaction cost can add up to 4% to your total cost. The processing fee can be a headache for small and big business owners alike. But accepting crypto payments can be your escape plan to get rid of these added costs.
No Chargebacks: Chargebacks are something that every business owner worries about. A transaction getting cancelled is pretty normal but unexpected chargebacks from customers can disturb your cash flow which could lead to many problems. With crypto payments, the transactions are permanent and irreversible. A crypto that is sent from one address to another cannot be called back unless a refund is initiated. Thus you will be able to ensure steady cash flow for smooth running of the business without worrying about chargebacks.
Security and Transparency: Like mentioned above, crypto currency transactions are decentralised and transparent. But they are backed by secure block chain technology and cryptography which provides an extra layer of security to the payer and payee alike. When you decide to make a payment in crypto, the chances of hacking, theft and third party manipulation are eliminated. Hence your privacy is protected and security of your funds is much higher than the traditional payment gateways.
Perfect for Cross National Payments: An ecommerce business may have many overseas clients which calls for a cross border payment method. The traditional payment methods are still lacking when it comes to fast processing of cross-border payments. And it also comes with hefty fees imposed on both parties for the payment processing. But usage of cryptocurrencies can be perfect for overseas payments as they get processed at lightning speed and minimal fees.
And that is why crypto payment gateways are often referred to as global or universal payment methods as they facilitate borderless transactions with ease. And this would be a great aid for growing your business overseas as you will be providing a pleasant payment experience to all your clients irrespective of location.
How to Set Up a Crypto Payment Gateway: Integrating a crypto payment gateway is no different than the process of setting up a traditional payment gateway. The process only takes less than a week to get completed if you have all the required business documents handy. There are many crypto payment gateway solutions including API, Plugins, Payment buttons and more. You can just choose the best one for you based on your requirements.
We are adding the top 5 crypto payment gateway service providers, in order to make the selection process easier for you.
1. Capital Wallet
The first one on our list is Capitalwallet, which is a regulated cryptocurrency exchange with Estonian regulatory body – FIU (Financial Intelligence Unit). They are mainly focused on providing merchant account services and crypto payment solutions to ecommerce business owners. They provide an API key for your business website which is one of the easiest methods for payment gateway integration. They charge 0.5% per transaction from their merchant account users.
Features of Capitalwallet Payment Gateway
The second one in our list of top crypto payment gateways is Coingate. This crypto payment gateway service provider is suitable for those who are looking for installable plugins or payment buttons for accepting crypto payments. They charge a fee of 1% per transaction from users.
Features of Coingate Payment Gateway
3. Bitcoin Pay
The third one on our list of top 5 crypto payment gateways is Bitcoinpay or BTCpay, which is quite different from the above 2 payment gateways. This is because this payment gateway does not support altcoin payments, but only Bitcoin. They provide 2 account setup plans for merchants to accept Bitcoin payments from clients.
Features of Bitcoin Pay
Cryptopay is another popular crypto payment gateway service provider, as they provide a variety of payment options for merchants to choose from. Plus the processing fee is just 1% per transaction which makes it the top 4 in our list.
Features of Cryptopay Payment Gateway
The list of top 5 crypto payment gateways is being completed by Coinspaid who charge a low fees of 0.8% per transaction. You get some unique payment setup options including channels and plug and pay. And they also provide secured hot wallets.
Features of Coinspaid Payment Gateway
Crypto payment gateways are an attractive and valuable addition for any ecommerce business irrespective of their nature and size. They are cost effective and easy to integrate, making it a hassle-free process for small and big entrepreneurs alike. Accepting crypto payments can not only make you stand out among your competitors, but will also help you to expand and grow as a global business entity with the support of borderless payment options. Thus crypto payment gateways can be your innovative solution to tap into the future possibilities with ease.
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