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These days, cryptocurrencies have become a big part of the business world. But handling crypto payments directly can be complex, with businesses using them to accept cryptocurrencies as payment for products or services.
In this guide, you’ll learn what crypto payment gateways are, their key features, common pricing structures, and how you can use one in your business.
What Is a Crypto Payment Gateway?
Crypto payment gateways allow businesses to accept payments from customers in digital currencies and then receive payouts in fiat (e.g. GBP, USD, EUR). They work as middlemen between the customer and the merchant. For example, a customer pays in Bitcoin, while the business receives euros directly in their bank account.
Key Features
Multi-Currency Support
The best crypto payment gateways allow businesses to accept multiple currencies, such as Bitcoin, Ethereum, USDC, and more. This provides customers with increased flexibility when paying for products or services.
Automatic Conversion
Crypto payment gateways automatically convert cryptocurrency into fiat at the moment of the client's transaction. This eliminates exposure to price volatility, making it easier for businesses to accept crypto without worrying about market swings at all. It also simplifies accounting, as businesses receive the exact invoiced fiat amount that’s easy to reconcile in financial records.
Crypto Deposits and Withdrawals
Many modern gateways enable businesses to accept crypto deposits from users and process crypto-based withdrawals. This is especially useful when users need to fund accounts or request payouts in crypto. The gateway handles the conversion and settlement, making the experience smooth for both the business and end user.
Lower Transaction Costs
Crypto payment gateways often offer lower processing costs compared to traditional card networks. By reducing intermediary fees, businesses can benefit from more cost-effective transactions, especially useful for high-volume or cross-border payments.
Built-In Compliance
Trusted crypto gateways follow strict AML (Anti-Money Laundering) and KYC (Know Your Customer) regulations. In Europe, MiCA regulations are now also in effect. This helps businesses stay compliant with financial laws while protecting both them and their customers from fraud or misuse.
Security
Reputable licensed providers offer strong security features like end-to-end encryption, real-time transaction monitoring, and two-factor authentication (2FA). This ensures that all transactions are processed safely and with minimal risk.
Customisation
Many crypto payment gateways offer customisable payment pages and transaction flows. This allows businesses to maintain brand consistency while offering crypto as a payment option. No need to compromise on user experience or brand identity.
How to Integrate a Crypto Payment Gateway into Your Business
Choose a Provider
Choose the best crypto payment gateway provider for your requirements, based on things like supported cryptocurrencies, conversion capabilities (fiat or crypto), fees, regulatory compliance, ease of integration, and adequate customer support.
Create an Account
Create an account and complete any required business verification, which often includes business documentation, proof of identity, and banking details.
Choose Your Integration Method
Depending on your setup and business operations, you can use a payment link, ready-made API (e.g., for Shopify or WooCommerce), or opt for a custom integration solution for more control and flexibility.
Integrate with Your Business
Add the payment gateway to your business’s checkout process. It’s important to continue to offer this alongside traditional debit and credit card options. Define which cryptocurrencies to accept and decide how funds will be settled - automatically converted to fiat or retained in crypto.
Test
Test the gateway with small transactions to make sure everything is working as designed and that integrations are secure. This includes testing the payment flows, settlement speeds, and also reporting features.
Go Live
Once everything is running smoothly, enable the crypto payment option on your site or platform. Let your customers know - this can be a great differentiator and marketing opportunity.
Benefits of Accepting Crypto Payments
Accepting crypto payments offers key benefits for businesses. Most notably, crypto enables fast, borderless transactions without the delays typically associated with traditional payment methods, opening your business to a wider global customer base.
Because crypto processing fees are often lower than those of debit or credit cards, businesses can save on each transaction. Additionally, blockchain transactions are irreversible, significantly reducing the risk of chargebacks.
Accepting crypto also helps position your business as a modern, forward-thinking brand. For customers who value flexibility and innovation, offering crypto as a payment option sets your business apart as the demand for this payment method grows.
FAQs
What is the difference between on-ramp and off-ramp in crypto?
An on-ramp allows users to convert fiat (e.g. EUR, GBP, USD) into crypto, while an off-ramp does the opposite, meaning it converts crypto into fiat. Payment gateways with on-ramp off-ramp crypto capabilities make transactions smooth for customers and businesses.
Is it legal to accept crypto payments?
Yes, it's legal, just like another payment method. As long as you partner with a licensed and compliant payment processing provider.
Can I accept crypto payments without converting to fiat?
Yes. Some gateways allow businesses to receive payments directly into a crypto wallet. However, these funds would then be vulnerable to potential market fluctuations.
Are crypto payment gateways safe?
Reputable crypto payment gateways are regulated and follow strict security standards, which means they’re safe to use. However, it’s important to use well-reviewed services to avoid potential issues with unverified alternatives.
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