{What it is and how it works}
As Digital asset becomes increasingly popular, more businesses are also accepting digital asset as a form of payment. This can be done with the help of digital asset payment gateways. In the same manner as payment processors, gateways, and acquiring bank credit cards are used, cryptocurrency payment gateways are payment processors for virtual currencies. With the aid of cryptocurrency gateways, you may take digital payments and get paid right away in fiat money. E.g Paypal, Plisio, bitpay, coinome, coinbase, blocknomics. However, it is not required to use a cryptocurrency payment processor to accept payments in digital currency. Despite this, businesses can accept cryptocurrency by using their personal wallets. However, cryptocurrency payment gateways make it straightforward for companies to accept bitcoin together with fiat money as payment and to complete transactions in real time.
These businesses take away any doubts or concerns you might have about cryptocurrencies and let you provide more payment choices. It’s vital to remember that payment gateways for digital currencies are not necessary. Although it’s absolutely acceptable to accept bitcoin payments using your personal wallet, gateways relieve you of the additional burden of operating a wallet and cryptocurrency exchange.
Custodial and non-custodial crypto payment gateways are two types of crypto payments. The profit made by the merchants in the case of custodial crypto payment gateways is added to their accounts, from which they can begin withdrawing money to their wallets. The profit is swiftly sent to the merchant’s wallet by noncustodial crypto payment gateways, who do nothing more than process the payment.
How it works
Payment gateways are businesses that use their wallet(s) to enable transactions between merchants and their consumers while taking on the perceived risk of cryptocurrency payments.
If a company intends to provide a demanding type of payment method but isn’t quite sufficiently prepared to enter the cryptocurrency market, they can use the crypto payment gateway. To continue operating over time, they demand a service fee from the clients. The bitcoin network’s miners and transaction validators charge the providers a fee for facilitating the transfers.
Payment Stream
The workflow described below is carried out in steps:
1}At the checkout, your consumer chooses to pay using cryptocurrencies (in-store, on the web, or in-app).
2}They pay you the fair market value of the digital currency at the moment of the transaction.
3}The payment is instantaneously converted into the currency of your choice by the bitcoin payment service.
4}The funds are added to your provider account and deposited into your chosen bank account at predetermined intervals as specified in your service agreement.
Benefits and drawbacks of cryptocurrency payment gateways
BENEFITS
1. A payment gateway keeps your clients’ preference for it while removing the secrecy of who you are working with.
2. Instant transaction settlements are a feature of gateways, however they come with a minor network fee (must be paid by the service provider) and a service fee (to be paid by the customers).
3. You can take payments in any cryptocurrency that your service provider accepts from customers anywhere in the world.
4. Transparent blockchain networks safeguard businesses against chargeback fraud.
DRAWBACKS
1.A payment gateway is a third party that cryptocurrencies were designed to avoid.
2. Gateways are companies that offer a service, therefore in addition to the cryptocurrency transfer, they will charge a fee each transaction.
3. Merchants also lose money when a cryptocurrency payment channel is compromised.
4. You have to rely on the provider’s ability to maintain uninterrupted services because you might be receiving payments from around the world and in different time zones
ARE CRYPTO PAYMENTS GATEWAY SAFE ?
Merchants should do their research on how service providers keep bitcoin and future fiat payments before choosing any cryptocurrency payment gateway. They can also take into account transaction costs, supported cryptocurrencies, and the platform’s record of frauds and hacks. Also check if their customer support is very vital. Payment gateways for cryptocurrencies are not required or required in order to conduct transactions using digital money. However, they eliminate a lot of the uncertainty, confusion, misinformation, and speculative effects that a distributed and unrestrained source of value may provide.
