You probably have heard about crypto payment gateways if you run a business that relies heavily on online sales. If you haven’t, a cryptocurrency payment gateway is a third-party processor that helps a business accepts payments in crypto.
By integrating a crypto payment gateway, you loop in a new class of shoppers increasingly choosing cryptocurrency payments. The big question for someone not adept at crypto then becomes, how does a cryptocurrency payment gateway work?
To help you in your journey to accepting cryptocurrency payments below is a step-by-step guide on how a cryptocurrency payment gateway works.
First, Integrate a crypto payments gateway
Before you learn the steps of how a cryptocurrency payment gateway works, you first need to integrate one into your company systems. This is usually done via APIs.
Depending on the cryptocurrency payment gateway you choose, you can either do the integration yourself or may require the services of an expert. For instance, Payaabbb is one of the most accessible cryptocurrency payment gateways you can integrate into your business. It is so easy that you can even do it by yourself.
Now that you know how to integrate such a system let’s look into how it works in an everyday setup.
- Customer selects crypto for payments
The first thing a customer does when they visit your website is to shop for products and then choose a checkout method. If they want to pay in crypto, the system will direct them to your installed cryptocurrency payment gateway. Here, they will give an option to choose one of the multiple cryptocurrencies listed.
The ones they choose depend a lot on the number that the gateway you have integrated supports. For instance, if you have integrated Payaabb into your systems, your customers will have the luxury of choosing between more than 400 cryptocurrencies at any given time.
2. The customer opens a transaction.
Once the customer chooses the transaction method they want and the crypto they want, the next step is to enter the transaction stage. At this stage, the exchange rate will be captured at the exact price where it was entered when the transaction was made.
The idea is to ensure the customer pays the correct amount without being affected by the ups and downs of the cryptocurrency market. For context on how important this is to a business, consider that Bitcoin has recently oscillated between $22000 and $25000 in a week. Without prompt conversions, this would make cryptocurrency transactions for everyday transactions impossible.
3. The gateway converts the payment.
Once the exchange rate has been captured at the price the customer is paying, the next step is for the business to receive the payment. It is done instantaneously to ensure that the business does not suffer any losses during the conversion process.
In fact, the conversion process is so fast that the business does not notice a difference between the price the customer pays and the one they finally receive in fiat.
4. Money sent to customer account.
Once the conversion is done, the company receives money in its account. The business will have money in its merchant account and can withdraw the cash at any time. It’s a very straightforward process that any business person can follow and start accepting cryptocurrencies.
Now the next big question a business would have is, why integrate a cryptocurrency payment gateway?
As a business, you have a lot to gain from integrating cryptocurrencies into your systems. For instance, you get to tap into the fast-growing market of cryptocurrency investors who also want to start paying in crypto.
Besides that, there are several other benefits that a business can get from integrating a cryptocurrency payment gateway, such as Binance Pay or Payaabb. Here are some of the most important ones.
a. It gives you access to customers from across the world.
If you have ever used any centralized payment gateway, then you know that they often have geographical limitations. You may have problems accepting payments from potential clients in some countries. With cryptocurrency payment gateways, you don’t have such limitations. Since cryptocurrencies are not tied to a specific country, you can receive payments from almost any country. Within the law, of course.
b. You have more control over payments.
Most fiat payment gateways have a safety mechanism that, while good, gives the payment gateway way too much power. For instance, a fiat payment gateway can withhold cash for months, negatively affecting cash flows. You cannot have these issues when using a cryptocurrency payment gateway.
That’s because, besides the fact that cryptocurrencies are decentralized, most cryptocurrency payment gateways are designed to eliminate the power of the middleman. For instance, a payment gateway like Payaabb has a feature that allows clients to pay through SMS and social media apps like WhatsApp. This means the business is never at risk of cash flow problems due to withheld payments.
c. It’s secure
Online payments are always full of risks. Hackers are always looking for ways to compromise the system and steal your money. If you integrate a good cryptocurrency payment, you will never have to worry about such issues.
That’s because most of them have security features that mirror the strength of blockchain technology. For instance, PayAABB’s security features are designed to make it difficult for anyone other than the business owner to access money sent by customers in transactions.
