In this article
- Exploring Crypto Payment Gateway Solutions
- What Are The Upsides of Crypto Processors?
- Do Crypto Gateways Defeat The Purpose of Blockchain?
- The Cryptocurrency Payment Gateway Workflow
- How to Select The Best Crypto Payment Processor for Business
- Transaction Fees and Reputation
- Security And The Extent Of Decentralisation
- Features and Scalability Options
- Top Crypto Payment Gateways on Offer in 2023
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It is no longer feasible to deny the global impact of the crypto market in 2023. While the numerous roadblocks and complications have stained the reputation and growth trend of this sector, crypto is making a very predictable comeback this year. This industry is slowly returning to its initial promise - transforming the global payments sector, elevating financial security and facilitating peer-to-peer transactions.
With the latest growth figures showcased by the crypto market, acquiring a proper crypto payment processor for business might be one of your wisest choices as a company in 2023. Here’s everything you need to know about this innovative technology.
Crypto processors are API solutions that allow businesses to adopt crypto payment options.
Crypto gateways simplify the complexities of crypto and allow companies to enrich their payment options.
Selecting the best crypto gateway provider requires careful consideration in several areas, including security, reputability, proposed features and scalability.
There are numerous processor options on the market, each with unique qualities, strengths and weaknesses.
Exploring Crypto Payment Gateway Solutions
Crypto payment processing (crypto gateways) allows businesses to accept cryptocurrency payments and receive the proceeds straight to their merchant account. This process is made possible by the crypto payment API technology that seamlessly connects business accounts to the crypto networks. Previously, businesses that wanted to adopt crypto solutions had to invest significant resources in this venture, all without knowing if the end product would be successful.
From extensive blockchain-related research and in-house development to clumsy payment integration, accepting payments in this field was exponentially more complex. Thankfully, the cryptocurrency payment gateways have changed the equation significantly, anchoring a small revolution similar to the credit card integrations that became commonplace in the late 2000s. Now, businesses no longer have to become crypto experts just to set up a properly functioning payment system.
What Are The Upsides of Crypto Processors?
The advantages of adopting crypto gateways are directly tied to understanding the benefits of blockchain-powered payment systems. Crypto payments are faster, cheaper, more secure and scalable compared to conventional electronic payments. Crypto transactions are not limited or hampered by user location, as the entire process is digital and doesn’t require extensive checks from third parties. In the past, acquiring all of these benefits meant businesses had to undergo an excruciating adoption process that required vast resources and time.
With gateways, the numerous advantages of crypto are only a subscription away since crypto processor providers will deal with all the technical complexities. Moreover, crypto gateways can empower your business to prepare for the future. The current crypto market development trends are increasing monthly, signalling steadier growth patterns for the near future.
All things being equal, the future crypto looks more stable than ever, inevitably leading to increased numbers of businesses and individuals who support and utilise crypto transactions. Thus, becoming one of the earliest adopters of crypto payment solutions could be highly profitable. After all, once early birds acquire the market share, they have a firm edge over the competition regardless of the industry.
Do Crypto Gateways Defeat The Purpose of Blockchain?
Naturally, there are some downsides to using crypto processors. Firstly, it is essential to consider all the inherent risks of the cryptosystems. The crypto market has its fair share of disadvantages, from volatility, congestion issues and liquidity problems to strict regulations. Understanding each of these issues is crucial before pursuing this venture.
As for the gateways themselves, there is one substantial question - Do the gateways disrupt the decentralisation offered by blockchain? The answer is quite complex. While the anonymity and security features are all present, crypto gateways are still operated by third parties that could potentially drop the ball. Any single entity is a target for malicious attacks, fraud and other cybercrime. Thus, utilising gateways slightly reduces the main benefit of crypto. However, the most reputable gateway providers have seldom experienced these problems, which is a great sign for all parties involved.
The Cryptocurrency Payment Gateway Workflow
The crypto payment method functions similarly to the conventional fiat payment systems. Since businesses and customers are already used to conducting payments in this manner, the gateway creators have decided to replicate most of the standard procedures. Here’s what the entire workflow looks like:
Step #1 - Customers enter the online platform or website and select the crypto payment option during checkout.
Step #2 - Customers pay directly in crypto or provide an equivalent fiat payment considering the fair market value.
Step #3 - The crypto gateway provider transfers the money to the business account or converts the fiat equivalent to the designated cryptocurrency.
Step #4 - The proceeds are directly transferred to your business account, either instantly or at predetermined intervals.
So, the entire process is relatively straightforward, never creating any complexities on the business side. The provider handles All crypto technicalities, including transaction processing, validation and overall monitoring. However, this process has numerous potential variations, as businesses can modify it to suit their distinct preferences. For example, companies can acquire a payment processor that turns crypto to fiat immediately. As a result, they will not have to keep any crypto reserves in the deposits, avoiding the crypto management hurdles altogether.
How to Select The Best Crypto Payment Processor for Business
It is undeniable that adopting crypto payment processing solutions could be one of the most significant advantages for small and mid-sized businesses in the near future. However, choosing the correct solution is easier said than done, as numerous gateway providers have entered the market. Currently, the choices are plentiful, but they can confuse industry newcomers.
While some options might seem flawless, there are many variables to consider. So, let’s break down all the essential aspects you must consider before purchasing a crypto gateway for your brokerage, exchange, or any other online business.
Transaction Fees and Reputation
Two of the most essential aspects are the overall pricing plans and the long-term reputability of the provider. Firstly, you should carefully assess the budgetary requirements of gateway solutions. Providers mostly charge commission fees or fixed subscription rates on their processor packages. As a bootstrapped startup with few clients, you should pursue fixed-rate subscription fees, as they are more hospitable toward low-budget businesses.
However, commission-based income is mostly high for large-volume businesses. While it sounds counterintuitive, large-volume companies can save much money by paying smaller commissions per single transaction instead of hefty fixed fees every month. Regardless of the ultimate choice, it is crucial to construct a forecasted budget and assess whether your business will comfortably cover the costs of adopting crypto gateways.
Secondly, the reputation of processor providers is arguably the most important factor to analyse. Since the crypto providers will be doing all the heavy lifting related to technical execution, security and money handling, it is critical to choose the right one. Thankfully, it has become much easier to weed out any potential providers that have stained track records or technical mishaps in the past. It only takes a bit of research to find impartial user reviews and assess gateway provider companies.
However, conducting thorough research and verifying that the provider has been nothing short of excellent with their previous and current customers is advisable. After all, the transparency and trustworthiness of the gateway providers will directly impact your target customers, your business and your liquidity.
Security And The Extent Of Decentralisation
Next up, it is essential to understand the security measures employed by the payment gateway for crypto. Since provider companies break the decentralisation rule by creating a crypto payment gateway API, the chances of cyber attacks and data disasters are significantly increased. Therefore, the selected gateway provider must have the most advanced security measures that comply with the best cybersecurity practices on the market.
Aside from the technical fortitude, provider companies must have a sound organisational understanding of possible cyber threats like phishing or fraud. Most flagship gateway providers have certificates and compliance reports to verify that their staff is well-equipped to handle any cybersecurity possibilities promptly. Thus, it has become much easier to verify the protective measures employed by crypto gateway providers.
Naturally, the decentralisation aspect is no longer intact with the presence of gateway providers. However, select companies in this sector have managed to construct a crypto-friendly payment processor that closely resembles the full-on decentralisation of blockchain. They achieve this through completely encrypting transactions and creating multi-step API solutions that can’t be breached through a single weak point. Thus, it could be wise to invest in providers that offer these services. However, remember that the above-outlined providers are considerably more expensive than standard crypto gateway companies.
The crypto user statistics showcase that there will be more than 420 million crypto owners in 2023. This number is set to rise by at least 20% in each of the upcoming years. With this pace, it is crucial to have convenient scalability options as a business.
Features and Scalability Options
Lastly, crypto gateways don’t just fulfil the basic requirements of processing crypto payments. Most high-level gateways have advanced features that elevate operational efficiency, decrease transaction processing times and offer convenient options to convert cryptocurrencies into fiat. Naturally, feature-rich gateways have higher price tags, and it is advisable to weigh benefits against the corresponding increase in expenses.
Scalability should also be considered carefully, as crypto gateways must be able to accommodate your evolving business needs. After all, no business stays the same for a long time. In most cases, companies grow beyond their initial capabilities and service an increased number of customers. Naturally, no business wants to be unable to grow with its audience due to scalability problems. Thus, it would be advisable to partner with a crypto provider capable of scaling their gateway bandwidth and volume per your growing needs.
Top Crypto Payment Gateways on Offer in 2023
As outlined above, the crypto gateway sector has no shortage of offerings on display. However, the slight market saturation has made looking beyond the noise more challenging and selecting the most optimal options without hassle. So, let’s recount the best crypto payment gateway providers that stand above the competition due to their exceptional qualities.
B2BinPay has been on the rise as a go-to payment processing provider in 2023. Overall, B2BinPay offers a great mixture of pricing, security, scalability and utility to let businesses acquire crypto payment solutions effortlessly. Several significant changes have been made to the platform in the current year, dramatically elevating its quality and user experience.
B2BinPay supports a vision of the future where businesses don’t have to deal with cryptocurrency and blockchain complexities to adopt this technology. The platform creators have also explicitly stated that they don’t charge hidden fees or additional costs. Instead, B2BinPay offers transparent scalability options if clients experience a higher volume of daily crypto transactions.
Coinspaid focuses on delivering high-quality gateway APIs and transaction processing without driving up the commission charges. They have specifically designed their pricing package to stay well within the 1% margin of conducted transactions. Thus, companies with high-volume trades can tremendously decrease expenses by partnering with CoinsPaid. Moreover, Coinspaid only charges per transaction without demanding set-up fees or monthly subscription charges. Thus, Coinspaid is an excellent option for businesses that wish to enter the crypto landscape without increasing their operating costs dramatically.
Coinbase Commerce prioritises the decentralisation aspect, unlike any other gateway provider. They have set up a system that only acts as a bridge between customers, blockchain networks and business accounts. No single individual within Coinbase can access these transaction records or deposits. Thus, Coinbase is by far the most popular choice for companies that don’t want to sacrifice decentralisation when they acquire crypto gateway solutions.
Like its standard counterpart, PayPal’s crypto gateway does not have a single market-best feature that could be turned into a tagline. However, PayPal’s strength is in its ability to deliver polished and optimised services that simplify financial management and raise customer satisfaction in the process. Their gateway solutions are no different, offering various outstanding options, including advanced tools to monitor crypto finances, excellent crypto-to-fiat conversion opportunities, transaction-based fees and much more.
Considering the current trends of the crypto market growth and maturation, it is likely that the market will witness a massive expansion in crypto users. Thus, adopting crypto gateways could be a great strategy to get ahead and establish your business as one of the early birds in global commerce.
What is a crypto payment processor?
Crypto payment processors are API-based digital solutions that allow merchants to accept cryptocurrency payments without spending massive resources on in-house development.
What are the most important metrics in choosing a payment processor?
The overall pricing, security, scalability and the extent of offered features are among the most important factors in selecting crypto gateways. There is no objective solution here, as each business has individual needs and goals.
Who are the best crypto gateway providers on the market?
Currently, B2BinPay, CoinsPaid, Paypal and B2Broker are leading the charge in this sector by providing the most feature-rich and flexible gateway solutions. However, your final choice still depends on your specific business needs and budgetary limitations.
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