There can be no doubt that 2021 was a fantastic year for cryptocurrencies, with Bitcoin hitting an all-time high, and El Salvador becoming the first country to accept Bitcoin as legal tender.
In light of crypto’s growing popularity across various sectors, merchants may want to set up cryptocurrency payment systems or find a crypto payment processor.
Although crypto payment processing is still in its early phases, this article covers various options for companies interested in engaging with cutting-edge alternative payment technology.
Several reasons have led to companies accepting crypto as a payment option, from their increased adoption to targeting specific customers. Here’s a more detailed breakdown of these reasons:
- Several crypto enthusiasts choose to trade to take advantage of the market’s volatility, while others are interested in using the technology to implement payments, non-fungible tokens, and decentralized finance (DeFi). According to a study conducted by the University of Chicago, about 13% of Americans trade cryptocurrency. In the eyes of these people, cryptocurrencies are a valuable investment and infrastructure that will eliminate the need for credit card networks and banks.
- Crypto users are typically a more avant-garde clientele that values transaction transparency. According to a recent survey, around 40% of crypto buyers are first-time buyers, with their purchase amounts more than twice those of credit card users.
Cryptocurrencies are usually sent peer-to-peer via QR codes or crypto apps using hashes which can be emailed, texted, copied, or pasted. However, payment gateways and similar services provide additional payment processing functionality and efficiency to cryptocurrency transactions. Highlighted below are some of the biggest cryptocurrency payment gateways available now:
Coinbase is one of the world’s largest cryptocurrency exchanges, and it’s the most popular in the United States. Its large user base enables it to provide users with incredible features that make their lives easier.
For individuals who wish to enter the crypto market, Coinbase serves as an on-ramp and off-ramp, enabling them to buy, sell, and trade crypto in their local currencies. Coinbase offers this service for free for the first $1 million in transactions, after which it charges a 1% merchant fee.
Coinbase also provides a cryptocurrency gateway through which merchants can make sales. WooCommerce and Shopify are both supported by Coinbase Commerce. On the other hand, one of the main drawbacks of the platform is that it is custodial. In other words, merchants will not have complete control over their private keys when holding crypto in a Coinbase account, resulting in the possibility of losing money.
While cryptocurrency is still a relatively new technology, BitPay has been involved in cryptocurrency payments for more than a decade.
The cryptocurrency payment gateway technology offered by BitPay relies on an invoicing system based on a simplified QR code. By locking in the currency rate at the time of sale, BitPay protects businesses from market volatility. This process lets you accept a cryptocurrency payment while never having the money pass through your hands unless you don’t want your payments in cryptocurrency.
BitPay business uses the auto conversion feature to receive every cryptocurrency accepted in dollars and euros via direct bank transfer.
With the BitPay cryptocurrency payment gateway solution, you can accept payments using your tablet or laptop. Merchants can deposit funds in the BitPay Wallet, a one-of-a-kind custodial wallet. They can also use their cryptocurrency to make purchases from other cryptocurrency merchants.
Coingate offers an advanced, user-friendly app that enables merchants to set up and manage payments directly from their phones. It also supports 40 other cryptocurrencies, which means that companies may significantly increase the number of payment methods they provide by utilizing this crypto payment gateway.
To make things even more interesting, Coingate offers a range of plugins and even supports the integration of the bitcoin payment button on any website. Coingate charges a 1% fee on all transactions, typically taking roughly an hour.
AlfaCoins, unquestionably one of the top bitcoin payment processors, enables users to split payments between cryptocurrency and fiat currency. It is an excellent option for merchants who want to keep some bitcoin from each transaction to profit from rising prices, as it allows them to protect their interests without risking the entire amount of the transaction.
While AlfaCoins offers a slightly lower transaction charge of 0.99 %, it does not give the $1 million in free transactions as Coinbase does. However, AlfaCoins charges no additional fees to establish the bitcoin payment system and does not require a subscription. Aside from Iran and North Korea, AlfaCoins can be used in any country. It is also possible to withdraw funds in USD or EUR.
NOWPayments is one of the more basic and uncomplicated crypto gateways on this list with no custodial features. While most crypto gateways provide low rates to businesses, NOWPayments has some of the lowest available, as long as you don’t mind being reimbursed in the same currency you were paid in.
It can process over 50 different coins, which should satisfy most of your needs if you want to expand your payment alternatives beyond the typical suspects. Transaction costs start at 0.5% and drop as your monthly sales volume increases. If you’re going to settle for a currency other than the one you received, you must pay an additional 0.5%. There is also a fixed rate exchange option to protect you from volatility, which increases the base charge to 1%.
GoCoin is popular among developers all around the world. This is because it provides a fundamental and simple API for them to use. GoCoin has a plethora of plugins, allowing it to be utilized on various online shopping platforms, including Shopify.
This cryptocurrency payment gateway’s customer service is well rated. It offers payouts in USD and levies a flat 1% fee on all transactions. It is supported in all but a few nations worldwide, making it a viable option for merchants.
Choosing a cryptocurrency payment processor is one of the first steps on your route to success. While crypto payments are still in their early stages, they can be a low-cost alternative to processing non-cash transactions when credit card transaction rates are increasing. Make sure you choose a provider with a good reputation and affordable rates that will provide you with the desired exposure level to cryptocurrency.