As crypto adoption expands worldwide, consumers are looking for new ways to use and spend their cryptocurrency. Merchants with online payment options can start accepting cryptocurrencies in exchange for goods and services through what’s known as a crypto payment gateway.
This article highlights the main features of crypto payment gateways, and why you, as a business, should consider using them.
What is a crypto payment gateway?
A crypto payment gateway enables businesses to accept payments in the form of cryptocurrency.
If you’re a merchant with an e-commerce business where money is exchanged for goods or services, chances are you accept major credit cards as a payment method for your customers. With a crypto payment gateway, merchants can accept payments in the form of a variety of cryptocurrencies on their website, just as they would a credit card or bank transfer. Customers can then pay for products using Bitcoin, Ethereum, USDT, and many other cryptocurrencies.
How do crypto payment gateways work?
Crypto payment gateways can function in a variety of roles.
The principal function of a crypto payment gateway is to allow customers to pay for goods and services using cryptocurrencies. For example, if you want to allow customers to pay in Bitcoin (BTC), you can use a payment gateway to start accepting Bitcoin in exchange for your goods and services.
Some crypto payment gateways may create a wallet for you to store the coins that you accept, or connect to an existing wallet that you already use. They may allow you to convert between different fiat and cryptocurrencies after receiving the payment. In this way, your business is able to receive and hold number of different cryptocurrencies.
For example if you are located in Canada you can use a crypto payment gateway to accept payments in Ethereum, and convert to Canadian dollars (CAD) that you can transfer direct to your company bank account.
Why should you use a crypto payment gateway?
Accepting payments in cryptocurrencies can give you an edge over your competitors.
Some advantages of using a crypto payment gateway include:
- Speed: Cryptocurrency transactions occur instantly, compared to the delays of credit card and bank transfers.
- Security: Payments are verified by the blockchain, allowing for greater security and transparency than the potential chargebacks associated with credit card transactions.
- Save on fees: Using a crypto payment gateway will also allow you to save on transaction fees associated with traditional payment methods. Traditional credit card fees may be up to 7 times as expensive as fees from crypto transactions.
- Simplicity: Crypto payment gateways simplify the process for you, from conversions between fiat and crypto, to setting up wallets to receive the cryptocurrencies.
How to choose the right crypto payment gateway for your business
When selecting a crypto payment gateway, it’s critical to look at how it can best serve your business.
Do they have coverage for the coins that your customers use? It’s important to select the provider that supports the cryptocurrency which your clientele may prefer using. In the same vein, your crypto payment gateway should offer conversion between cryptocurrencies and your local currency, should you choose to convert at all.
Fees can vary across different processors. While still much lower than traditional online fiat processors, transaction fees can still fluctuate between crypto gateways.
Customer experience. Is the experience seamless for customers to pay with crypto, or convert from fiat currency? Do they have a helpful customer support team? These are some other important factors to consider when deciding on a crypto payment gateway.
Where MoonPay comes in
With over 300 partners across 170 countries, MoonPay enables businesses to integrate cryptocurrency into their payment solution – providing a quick, simple and secure entry point into the cryptocurrency market and supporting over 30 fiat currencies and 20 cryptocurrencies. MoonPay enables crypto access via the most widely-used mobile payments such as Apple Pay, Google Pay, and Samsung Pay, as well as the biggest global card services such as Visa and Mastercard.