In those olden days of the analogue era, there was no reliable way to move cash, nor was there a better way to transfer major payment information between payment processors. As a result, purchases and bulk orders took a lot of time to process.
Today, the reverse is now the case! Payment gateway systems perform these tasks with ease over the internet. So, instead of transmitting payments, payment gateway systems mandate the transfer of funds to the seller and in a secure manner for the buyer.
That said, permit us to refresh your mind about what a cryptocurrency is all about.
What is a Cryptocurrency?
A cryptocurrency is a digital currency used for online transactions. It is actually encrypted and secured using blockchain technology. The foremost feature of it is that it is decentralized and not regulated or controlled by the government or any central authority.
All the transactions involving cryptocurrencies occur over the internet without paper money having to exchange hands. These kinds of transactions are a lot cheaper than the charges from the conventional bank. The value of a cryptocurrency depends on the current market price when converted to a fiat currency.
Bitcoin (BTC) is the most successful cryptocurrency in the world today. In fact, smart businesses have already started accepting bitcoins for payment and its growth is becoming commonplace in society.
What is a Bitcoin Payment Gateway?
A Bitcoin payment gateway is a payment process that allows businesses to accept payments in Bitcoin.
Nowadays, the majority of these payment processors promote the buying and selling of many other altcoins. The cryptocurrency market is very volatile. This means that merchants of varying degrees must ensure that payment in bitcoins is quickly converted to fiat currency to prevent any losses.
Payment processors play a great role in this regard in the sense that they facilitate quick transfer of bitcoins into fiat currency. They also allow businesses to automate such payments and provide tools that make the process convenient.
Advantages of Accepting Bitcoin Payments
There are many advantages to why businesses should accept a Bitcoin payment. Here are the benefits merchants should consider for adding Bitcoin to their list of payment methods.
- The processing fees are much lower and are usually paid by the buyer.
- Merchants that have global business reach can integrate Bitcoin payment methods and forget about conventional currency exchanges and the fees associated with it.
- It offers existing customers a new way of paying for goods and services.
- Bitcoin does not need a monthly subscription fee which is a big saving over using the conventional bank account or payment processing. Some payment processors limit the size of transactions they handle but this is not the case with Bitcoin.
- Processing of payment using blockchain technology is indefinitely recorded in a blockchain ledger, thereby eliminating any likelihood of fraud.
- Transaction confirmation does not take much time, usually less than 10 minutes.
- Blockchain technology applies to Bitcoin payments to make them more secure and has a lot of computing power that protects Bitcoin storage.
Top 10 Bitcoin Payment Gateways for 2018
The decision to choose a Bitcoin payment gateway for an online business is no longer optional. But, this decision will hinge on the type of cryptocurrency payment processor you choose to meet your company’s need. Here are the top payment gateway options available to choose from:
This is the biggest international Bitcoin exchange in the world and the largest Bitcoin exchange in the United States. It has a very large customer base and the resources to develop great features to help make life safer for its users.
Furthermore, Coinbase is one of the most reliable exchanges in the world. It is a payment gateway as well as a normal exchange. This payment gateway facilitates immediate currency conversion from Bitcoin to fiat currency without requiring the merchant to request a withdrawal.
Payments arrive in the merchant’s bank account within a 3-day period. The only problem with Coinbase is that it operates in a few countries in the world.
CoinGate processes Bitcoin and over 40 altcoins. It transfers payments back to USD or Euros fast, once the customer makes the payment. Also, CoinGate accepts altcoin payments and transfers same to Bitcoin payments based on the merchant’s choice.
It has an app which allows businesses/individuals to set up and track payments from their phones. CoinGate charges a flat fee of 1% on all transactions which take less than 1 hour.
ALFAcoins provides the same Bitcoin payment integration as other processors. This company ensures that incoming payments are divided between fiat currency and cryptocurrency. It supports Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH). ALFAcoins charges a transaction fee of 0.99%, which is typical with most payment processors.
It is available in almost all the countries of the world except in Iran and North Korea. You can withdraw your funds in either Euros or USD.
Shopify is one of the most reliable payment gateways that assist in Bitcoin transactions. Thousands of Shopify merchants are currently accepting Bitcoin payments. It boasts plenty of customer care support and is easy to set up.
Their platform has a lot of good features and an API which allows integration with Coinbase and other payment gateways that make the process transparent. Shopify requires merchants to register for a merchant account to use their payment platform.
BitPay has a two-way authentication that helps to make accounts more secure. Another wonderful feature of BitPay is that it provides the leverage to set withdrawal transaction speeds to any timeframe needed.
This payment gateway provides a free capitalization of $1,000 USD worth of transactions every day and $10,000 USD yearly transactions before charging a 1% transaction fee. The only drawback to BitPay is that it supports direct bank deposits in only 38 countries.
This is the developer’s top choice as it offers a very simple API for them to use. GoCoin offers many plugins which are useful in several online shopping platforms such as Shopify.
Its customer service is second-to-none based on the majority of reviews received. GoCoin charges a transaction fee of 1% and offer payouts in USD.
BitcoinPay offers the cheapest rate on transaction fees as it charges 0.8% on all transactions. The company has been around since 2014 serving the European markets and offers payouts in many currencies such as ESD, Euro, PLN, and others.
It offers very fast withdrawals of funds. BitcoinPay supports payments to Bitcoin wallets, other electronic wallets, and bank accounts. It offers plugins for WooCommerce, Magento, OpenCart, and other shopping platforms.
GoUrl is the perfect payment gateway for your business if you don’t have a bank account. It is compatible with major Bitcoin wallets and debit cards including the one offered by BitPay. This makes the company offer a high level of anonymity which is a treasure for Bitcoin users.
Its WordPress plugin carries a lot of weight and has helped it gained the position as one of the best payment gateway plugins for that platform. You can receive payments on this platform within 30 seconds of conducting the transaction.
Unfortunately, the GoUrl platform has some drawbacks. First, it doesn’t offer direct bank transfers. Secondly, the transaction fees are high when compared to other payment gateways.
This company provides the easiest explanation of how Bitcoin payment gateway really works. If you have issues with how Bitcoin works, how it transacts and converts, then this site is the right place to visit.
They charge a 1% fee on every transaction. More so, new merchants get free transaction for a limited time. SpicePay favors those businesses that rely heavily on Paypal.
SpectroCoin is a multipurpose site for those who wish to use Bitcoin. It is a payment gateway that allows consumers to get a Bitcoin debit card or a Bitcoin mobile wallet. It offers Bitcoin payment gateway integration through electronic shopping cart plugins.
SpectroCoin facilitates the automatic and quick transfer of Bitcoin payment into the merchant’s preferred currency option. This helps to cut the risk of volatility in exchange rates.
The options for choosing a Bitcoin payment gateway are many and new ones are popping up every day. Generally speaking, the Bitcoin payment gateways have certain standard features that will make a merchant start accepting Bitcoin payments.
The task revolves around a developer who has the experience in Bitcoin payment gateway integration to seamlessly process it in such a way that it serves the customer better.
This article should not be taken as, and is not intended to provide, investment advice. Users are ultimately responsible for the investment decisions he/she/it makes based on this information. It is your responsibility to review, analyze and verify any content/information before relying on them. Trading is a highly risky activity. Do consult your financial adviser before making any decision. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.
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