Some companies don’t hurry to implement crypto payments because entrepreneurs think it’s too challenging and requires in-depth knowledge of blockchain. In fact, such processing companies as Coinspaid offer ready-made solutions that allow setting up crypto coin payment feature in a few clicks.
How does a crypto payment gateway work?
All a merchant needs to start accepting crypto payments is a cryptocurrency payment gateway (cryptocurrency processing). This is special software that interacts with cryptocurrency nodes (exchanges data) and sends payment data to the distributed ledger.
When a block with the data is mined, transaction details stay saved in a blockchain. That means the operation is irreversibleб and no one can forge or delete the information about it. A cryptoprocessing gateway allows you to accept or send cryptocurrency as payment for a specific product or service through various channels.
Processor (payment service provider) is a service that allows merchants to accept payments through various channels. In general, a crypto processing gateway plays the role of an intermediary and performs 6 main functions:
- Registers the payer’s data (for example, card number);
- Converts the sum at the specified exchange rate (if paid in another currency);
- Verifies the transaction (for example, with a 3D Secure code);
- Accepts money from the buyer;
- Transfers money to a merchant;
- Provides confirmation of payment processing for both parties.
Crypto-processing works in the same way, but two more key steps are added to it:
- Sending transaction data to the blockchain and registering confirmations from nodes;
- Converting the received coins into fiat (at the request of the merchant).
Popular crypto-processing services include Cryptoprocessing.com, Coinpayments.net, BitPay, CoinAcquring and others. They allow you to accept dozens of different cryptocoins and deposit funds received into the merchant’s account in a wide variety of fiat currencies.
Who needs crypto processing?
Processing of payments in cryptocurrencies is best suited for online businesses (games, streaming, entertainment multimedia content, etc) and e-stores. It goes without mentioning projects based or interconnected with blockchain: crypto wallets, decentralized exchanges, and so on.
Today, the most widespread offer on the market is processing as a temporary service, a “rent” with monthly payments (commission from a turnover or a fixed fee). In this case, the online store connected to the crypto-processing service transfers full control over the flows of customers’ funds to a third-party operator and pays a commission percentage on all incoming payments.
This option may be suitable for small businesses: outsourcing is usually easier, and the average fee is lower than the expense of launching your own cryptoprocessing gateway.
However, for medium- and large-scale businesses, the issues of security, compliance and control over their own and clients’ funds are crucial. In this case, own processing facilities cut commissions and maintain security of all financial data. Today, the market offers an abundance of white-label crypto pay gateways – one of them is described below.
Why should companies accept payments in cryptocurrency?
Different types of businesses can reap a host of benefits from crypto payments:
- Wider geographic coverage. Crypto users in almost any country can pay for the services of a company located in any other corner of the world. With cards and e-wallets, this is often impossible – each region has local processing platforms that don’t allow for international transactions. Crypto payments totally eliminate geographic limits of wallets.
- Reliability. No more “Transaction declined by the bank” cases – traditional banking is not reliable! Cryptocurrency is the optimal solution: a blockchain wallet cannot block a transaction.
- Low costs. With all the processing expenses, the fees of crypto transactions usually don’t exceed 1% of the amount. For traditional processors like PayPal and Stripe, they reach 2-3%.
- Speed. In some industries (iGaming in particular), it can take a week to process an e-wallet withdrawal. Withdrawal in crypto takes a few seconds or up to a few minutes.
Another important reason for accepting crypto payments is security. With traditional banking services, there is always a risk of payment data interception by fraudsters. This is a particular pain point for bank card users because they enter all the credentials, including a CVV code. Processors are capable of providing the necessary level of security but the merchants do not have such an opportunity.
Integration of crypto payments allows to avoid these risks and doesn’t require building the processing infrastructure from scratch – such platforms as CoinsPaid provide turnkey solutions for businesses to start accepting crypto immediately.
Why use CoinsPaid crypto processing service?
CoinsPaid is a major crypto processing provider that serves hundreds of businesses around the world. It accepts payments in over 30 cryptocurrencies while supporting USD, EUR, GBP and other fiat currencies – they can be sent directly to a bank account.
The crypto gateway solution by CoinsPaid saved customers over $35 mln in 2020. It allows cutting on fees by up to 90% compared to traditional PSPs. To top it up, the solution guarantees 100% acceptance rate for any business type. The service is being widely used by iGaming companies and online entertainment projects, Forex trading platforms, e-Stores and software vendors. It can be useful for your business, too.
To stand the competition, any business should strive to provide customers with flexibility, speed and convenience. This is exactly what crypto payment processing serves for: a properly chosen gateway can make a day-and-night difference for your company.