Accepting Bitcoin and other altcoins opens businesses up to more customers and the excitement of a new company accepting crypto. While crypto is a great payment method, there are a lot of learning curves to overcome. The issue comes from the volatility of these currencies, and the fact that some small businesses can’t afford to wait out the dips.
Accepting cryptocurrency would be a lot more admin to ensure these payments are converted to fiat, so that the risk of volatility does not affect them. Smaller businesses do not have the privilege of saving most of the time, they have bills to pay and more stock to buy. That is where crypto payment gateways come in.
What Are Crypto Payment Gateways?
Crypto payment gateways are processors that allow you to accept cryptocurrency as a payment method, but there is more. Upon accepting payment in crypto, these crypto payment gateways automatically convert your processed payment into a fiat currency of your choosing. This eliminates the risk of falling assets while still allowing businesses to open themselves up to newer and bigger customer bases.
Crypto Gateways Are Revolutionizing Crypto Acceptance
More and more e-commerce and retail stores are starting to embrace the power of cryptocurrency payments, thanks to crypto gateways. We are living in the era of cryptocurrency, and these gateways are opening up the doors for mainstream adoption. Through ease of use, accountability, and versatility, crypto gateways are revolutionizing payment systems.
Your everyday person no longer has to be a crypto expert, or be watching the markets 24/7, crypto gateways do all the heavy lifting. All businesses need to do now is have something to sell, the rest is taken care of. This evolution in payment systems is sure to see far more businesses accepting cryptocurrency, thus evolving the crypto space even more.
How Do Crypto Payment Gateways Work?
The mechanics behind crypto payment gateways are simple to understand and use. Using an integration platform, you will be able to accept cryptocurrency and withdraw it into fiat whenever you want or need. The process follows as such:
- A customer chooses to pay in cryptocurrency at checkout.
- They pay a total equivalent to the fiat value depending on the cryptocurrencies' value at the time of purchasing.
- The cryptocurrency payment gateway then converts the payment into your preferred fiat currency instantly.
- The money is then transferred to your crypto payment gateways account; where you can then withdraw it to your personal or business bank account.
- And that’s it.
It really is super easy to understand and use, with most complexities sorted out by the crypto payment gateway. All you have to do is set up an account, choose your cryptocurrency, link your bank account and preferred convertance currency. Your input needed is minimal for maximum output.
Pros And Cons Of Crypto Payment Gateways
While there a very clearly many benefits for businesses accepting crypto, there are some drawbacks to crypto payment gateways too. This wouldn’t be an insightful overview if we didn't cover both and let you know what to expect. So let us get into the pros and cons of crypto payment gateways:
Pros
- Reduces the risk of market volatility and loses
- Little understanding of crypto needed
- Less admin work is required from your business
- Appealing to customers who want to pay in crypto
- Someone to contact or hold accountable for payment issues
- Bypassing crypto laws by receiving fiat in your account
Cons
- Relying on the crypto payment gateways admin and services
- Additional transaction and service fees
- The risk of the crypto payment gateway being hacked
- They are third party providers, which crypto was designed to bypass
The Best Crypto Payment Gateways
Now you know what crypto payment gateways are, how they work, why people use them, as well as some pros and cons to keep in mind. Each crypto payment gateway is different, providing different services and currency options, which makes it hard to recommend even a few to you. When it comes to crypto, it is a golden rule to do your own research.
You have all the core information you need to make an informed decision, but ultimately, the decision of which crypto payment gateway is best for you is up to you. Consider which audiences you want to reach, what currencies you want to accept, and what currency you want to be paid out in. You know what is best for your business.
We hope this piece helped you better understand crypto payment gateways and laid the foundation for your future success. The future of cryptocurrency is here, and you are not too late to start benefiting from it. Follow Oobit for more crypto content, and to stay updated on the ever-growing blockchain industry.
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