Cryptocurrency Payment Gateway
What It Is and How to Find the Best Provider
Cryptocurrency payments have grown popular especially after the peak of Bitcoin in 2017. According to reports, there are almost 34 million active crypto wallets all over the globe in 2019. Because of this, eCommerce merchants have opened their doors to cryptocurrency payments. This digital currency might just be beneficial for them as transaction fees for cryptocurrency is significantly lower than traditional payment methods.
Let’s start by asking, what is a cryptocurrency payment gateway?
This digital currency uses blockchain technology that removes mediators between transactions which then increases transparency. It allows merchants to accept and process safer transactions through the encryption that comes with cryptography.
Crypto payment gateways have a higher form of security when compared to traditional payment gateways. Furthermore, a smart contract is enforced in every transaction which verifies the payment details thus assuring merchants of the authenticity of said transaction.
What are the Common Types of Cryptos?
There is no doubt about the popularity of Bitcoin but there are other types of cryptocurrency that are just equally important. Let’s get into detail what these are.
Bitcoin - is a form of cryptocurrency that is kept in "keys" which are composed of long strings of numbers and/or letters that are linked through an encrypted algorithm. A "public key" serves as a bank account number in which other people may send bitcoins. A "private key" on the other hand is considered to be similar to an ATM PIN that is only used to authorize Bitcoin transmissions.
Ethereum - also popularly known as Ether was launched in 2015 is to this day is the second-largest digital currency. However, its market cap remains to be significantly lower than that of Bitcoin which is only around a tenth of the size of one Bitcoin.
Ripple - or XRP offers low-cost international payments with end-to-end transparency. Unlike Bitcoin and other Altcoins, XRP requires no mining. XRPs are pre-mined before its launch and can only be added or deducted from the market supply. With a market cap of $9.2 billion, XRP holds third place among the largest cryptocurrency in the world.
Bitcoin Cash - should not be mistaken with Bitcoin. This is alternatively known for its acronym BCH. After a split in the Bitcoin network, BCH was created and launched in August 2017. Perhaps the biggest difference between Bitcoin Cash and Bitcoin is the limit of the size of blocks. While Bitcoin has a limit of one megabyte (MB), BCH has a limit of eight megabytes (MB). The per token value of BCH as of January 8, 2020, is estimated to be at $240.80.
EOS - is a pretty recent digital currency that was only introduced last June 2018. It follows the design of Ether which allows developers to build decentralized applications. EOS has a market cap of $2.7 billion.
Other cryptocurrencies include:
- Cardano or ADA
- Litecoin also called LTC
- Stellar or otherwise known as XLM
Can a payment gateway accept credit card, debit card and cryptocurrency?
The answer to this is yes, it is possible. However, this would still depend whether your payment processor is capable of processing crypto transactions. As a matter of fact, some of the best cryptocurrency payment gateway for cryptocurrency offer fiat-to-crypto and crypto-to-fiat payment solutions.
Credit Card vs Cryptocurrency
Aside from the obvious difference of transaction fees between credit card and cryptos, transactions made through the best payment gateway for cryptocurrency are free from the burdening shackles of chargebacks. It is common knowledge that chargebacks are the mortal enemies of merchants and that credit card payments are highly prone to it. But, with the irreversible setup in blockchain technology, customers just can’t get their money back after a purchase is made.
On top of that, information shared in crypto payments is very limited. Only the public key is shared when transacting in a cryptocurrency payment gateway. This means there is little to no chance at all of fraud and credit card information theft. Meanwhile, customers share their personal data to the merchant, their acquiring bank, and any other mediator when paying through credit cards. This kind of security is far too different from cryptocurrency.
Still not convinced? Here are other reasons why you should integrate cryptocurrency payment gateway to a website.
There are far less restrictions when it comes to cryptocurrency payments. Given that it uses blockchain technology, cryptos can be sent and received from any point of the world. Merchants will then be able to accept payments from any part of the globe with no limitation from any country's government.
Cryptocurrency payments are faster to transact. It can be approved within minutes and reflects in real time.
More and more ecommerce shoppers are using cryptos in this digital age. This means merchants with cryptocurrency payment gateways can welcome a bigger market now and in the future.
Integrating Cryptocurrency Payment Gateway to An eCommerce Site
The first step to integrate a cryptocurrency payment gateway to an ecommerce site is to find a payment processor. The best cryptocurrency payment gateway can only be provided by a reputable processor. Research is key to finding said processor. A merchant should review not just the services offered but should also include the transaction fee to shoulder these services. Another factor to account is the number of cryptocurrencies they support and if these currencies can be converted to fiat money.
Merchants also have the choice which cryptocurrency they want to accept on their Point of Sales (POS). And they have the option to directly convert the crypto to fiat money (in the fiat currency of their convenience) or keep it as is. WooCommerce among other major ecommerce platforms have ready plugins which finally enables the integration of crypto payments.
Moreover, a digital merchant wallet will also come handy when integrating crypto payment gateways.
Cryptocurrency is the budding mode of payment of today and will be the top mode of payment in the foreseeable future. Contact us at EU Paymentz now to start integrating cryptocurrency payment gateways. Get ahead of your competitors and drive your sales higher!