The popularity of cryptocurrency is increasing every day. For example, some countries already accept Bitcoin transfers as a legitimate online payment option.
Using crypto processing, it is possible to accept payments in currencies such as Bitcoin, DASH, Bitcoin Cash, and others. On the buyer's side and on the companies' side, this is a very lucrative deal, as customer data in the crypto transaction will be securely protected.
This article will explain how a cryptocurrency payment gateway works, and you can make an informed decision about integrating crypto payments into your online shop.
Cryptocurrency payment gateways are modern payment networks without restrictions. They can be used to seamlessly transfer payments and accept payments in all popular cryptocurrencies, from the most popular Bitcoin and DASH. The list of coins that the gateways implement can be specified when installing the API.
Like any currency, crypto needs to work, not be held in the back of wallets. Numerous spikes in the value of cryptocurrencies contribute to this. Bitcoin, in particular, is highly volatile. To avoid losses, it is better to make withdrawals and convert crypto into fiat immediately when making electronic payments. With gateways, this can be done very quickly, as the system can be set up to convert automatically.
This way, your money is protected from depreciation by the cryptocurrency payment gateway software tools.
In today's market, cryptocurrencies are no longer just an asset class but digital money in circulation that can be used to pay for work, goods, and services. Businesses that are keeping up with the times are already incorporating cryptocurrency payment methods into their services. Users of Bitcoin, BTC, Ethereum, and other digital currencies already have a significant market share.
More often than not, people with high incomes use cryptocurrency, which means they are able to give large sums to online businesses. However, it is highly desirable that the transfer of funds is secure and fast. Cryptocurrency processing can provide both.
Naturally, like any payment system, cryptocurrency gateways have their own risks. But their probability is far inferior to the convenience of using crypto. Next, let's take a look at how coins can be used.
Owners of cryptocurrency wallets who have coins at their disposal can pay directly or by converting the money into fiat. Naturally, the first option would be preferable for Bitcoin and other crypto coin owners. It is fast and with lower payment fees. This is why it is so important for merchants to set up digital currency turnover.
If your online shop's website is not set up with this e-commerce option, however, the buyer will have to perform a number of money manipulations to pay.
Below are the possible options:
Send a peer-to-peer transaction via a third-party digital wallet before paying;
Use a bank card with fiat currency;
Exchange currencies through a dedicated exchange service.
Each of these methods will delay payments and may even turn the customer away from your company. Therefore, it is important to focus on developing the payment capabilities of your business and setting up crypto-acceptance features. Using them will improve the quality of the entire website platform.
Many cryptocurrency owners are willing to make online transactions in crypto, but online shops simply can't give them that option. Set up a crypto-processing service and attract new customers for your operation.
First and foremost, using a digital currency exchange gateway will help attract customers who have that digital currency in circulation. This is still a small percentage of all potential buyers, but the number of crypto owners is increasing every year.
Those who already use digital money are more likely to be concerned about losing finances during periods of volatility. Here, too, a gateway can play to your advantage: by using automated processes to track currency movements, you can offer your customer a fixed amount at best possible time.
Payment gateways also offer an increased level of security for funds. The company will be able to expand its sales geography globally by introducing digital money.
Enabling this method opens up new opportunities for a company to expand. If the products or services you offer are aimed at the potential digital money holder, you should definitely implement cryptocurrency acceptance.
Using cryptocurrencies will provide businesses with the following opportunities:
Transaction control: all purchase details will only be available to you;
Attracting new customers;
No control of payments by the bank;
Payments are secured against fraudsters (PCI DSS certification);
Cryptocurrency payment fees are lower than those of a fiat bank;
Advantageous solutions for international cooperation;
There is no limit to the amount of money to be transferred.
On the client side, there are several different ways to use cryptocurrency. He can exchange fiat and use different conversion services and other services. The best solution for business owners, however, is to install a cryptocurrency payment gateway.
This option is identical to using payment processors and bank cards. With one exception: all transfers are made instantly online. The customer can pay for goods in their digital currency, and the gateway will convert it into their preferred currency. Thankfully, there are several dozen popular cryptocurrencies on the market today.
This way, the intermediary will take care of all the cryptocurrency payment issues, and you can focus on improving product quality and increasing sales.
It's worth noting that connecting payment gateways for crypto transactions is not the only option. However, gateways help save a lot of time and nerve cells for both buyer and seller. An automated exchanger manages the wallet, keeping money from depreciating.
Crypto transactions through a gateway follow the following pattern:
From the market price of the coin at the time of payment, the amount that the customer needs to pay is generated;
The payment gateway instantly converts the buyer's digital currency into the designated currency of the seller (the owner's online shop);
Once the funds are credited to the account, the payment is considered successful. The duration of the transfer period is set in terms of service.
This integration option is completely transparent. Both parties do not have to worry about volatility issues, conversion times, and other problems associated with using digital money. The transaction does not even require a QR code.
Note that in some countries around the world, digital currencies are not available as a type of money. In India, for example, crypto payments are prohibited by law. To avoid negative consequences, be sure to clarify such nuances well in advance.
Like other money-handling systems, cryptocurrency payment gateways have a number of advantageous advantages, risks, and disadvantages. That said, for each case, these particular digital platforms can tip one way or the other.
To determine whether or not you should install a digital currency gateway, you need to familiarize yourself with all the specifics of gateway transactions.
Some of the positive features that cryptocurrency processors have include:
Establishment of complete anonymity when transferring funds;
The ability to accept payments from many countries;
Easy API installation, which does not require deep knowledge of programming or the field of cryptocurrencies;
Close to minimal risks of losing money due to exchange rate volatility;
Guaranteed support from the gateway company;
Possibility to use the wallet with different types of cryptocurrencies.
As you can see, the range of advantages is quite impressive.
The disadvantages of the payment gateway system include the following:
The company allows a third party to participate in the financial system. It is a representative platform that organizes the API for setting up the service;
A small fee to be paid.
Although there are some disadvantages, a payment gateway is a better solution than a financial exchange. A few simple steps: set up the MEEG API, register your account with an email, and your shop will be able to accept cryptocurrency payments to boost your business’s efficiency and inclusivity.