According to a Checkout.com report, 77% of merchants who choose to accept crypto as a payment method see an increase in cross-border sales. So it’s no surprise that an estimated quarter of all online businesses want to offer crypto payment methods by 2025, a number that will only grow as the education gap narrows.
And this is not just a local phenomenon. According to recent data, about 15, 174 companies around the world use Bitcoin payment processing, and only 2,300 of those companies are located in the United States, so it’s clear that mass adoption is increasing, and the statistics bear that out. Let’s explore the reasons for this change and see what advantages crypto payments offer businesses compared to traditional fiat gateways.
Advantages of a Cryptocurrency Payment Gateway
While many are already familiar with the basic benefits of digital assets, certain aspects make crypto particularly attractive to businesses of all sizes and industries. The cryptocurrency gateway reduces processing costs.
One of the most frequently cited benefits is related to lower fees. While in the world of fiat a merchant can pay up to 3.5% for each transaction, fees can be as low as 0.8% when using the best cryptocurrency payment gateways.
Cryptocurrency processing eliminates charges and floating fees
Another financial incentive is related to the impossibility of charge fraud. Because all blockchain transactions are final by default, merchants no longer have to deal with floating reserves from chargeback laws. These funds can be used within the company and can increase revenues.
Crypto gateway payments enable businesses to scale and expand.
Unlike banking, crypto is available anywhere in the world – all you need is an internet connection. This allows traders to significantly increase their cross-border potential and reach a wider market. Fiat-only companies tend to cater to their local cohort, but digital assets know no boundaries. This is incredibly important not only for revenue but also for advertising opportunities. The only way to achieve this kind of global scale in traditional finance is to offer payments in more than 200 local currencies, which is simply impossible.
Crypto gateways offer good acceptance rate.
Then there’s speed, because crypto payments are instant. Merchants using PayPal can take up to 5 business days to process these payments. Such inefficiencies slow down business and lead to reduced revenue. Plus, forecasting is much easier with instant payments. In addition to processing time, you also have to consider the rejection rate, a parameter that shows how many transactions were rejected. High customer volume can lead to increased customer churn, resulting in lost business.
In the traditional payments industry, automated cash management systems often reject payments due to false flags. Thanks to this, the percentage of fiat processors is about 15%, although it is almost nonexistent in terms of digital resources. Thus, the best crypto service providers offer an acceptance rate of 99 while maintaining the immediacy and cost-effectiveness of transactions.
Instant payments exist on the blockchain because there is no need for central authorities to verify the transaction. In addition, they operate 24/7 in contrast to the strict banking hours. As an added bonus, processors like CryptoProcessing.com use their own nodes, which ensure instant transactions even when the network is congested.
Best Crypto Payment Gateways
Despite the benefits, there are still risks associated with crypto, as it is still unregulated in many countries. That’s why it’s important to work with a reputable cryptocurrency processing provider to avoid fines and a bad reputation later. So what is the best tool to find these benefits for your business? After the collapse of several crypto giants, there are few options.
A traditional alternative would be BitPay. Since 2011, the platform has provided its customers with “hands-free access.”Merchants can accept payments in real currency instead of customers’ preferred crypto; the service converts money instantly. With a one percent processing fee, the service is relatively cheap compared to a fiat gateway. Although not fully global, BitPay offers payments in eight currencies with direct bank deposits in 38 countries.However, the service has more than once fallen victim to bad press.
In late 2014 BitPay lost more than $1.8 million worth of bitcoins after an executive fell victim to a phishing scam. Later in November 2018, BitPay warned its users about an infected code designed to steal the private wallets of people using its open-source wallet. Aside from these instances of bad press, BitPay remains a strong and reputable option.
CryptoProcessing by CoinsPaid is a leading cryptocurrency payment gateway with over 16 billion euros processed. In fact, the service accounts for nearly a tenth of all bitcoin transactions worldwide. In particular, CryptoProcessing.com offers functionality for both regular and one-time cryptocurrency payments via API, as well as the ability to receive digital assets with a few clicks of your mouse through its multi-currency wallet for businesses.
has no setup or monthly fees and only charges a transaction fee of 0.8%. Furthermore, by using the platform’s original brand or participating in the Ambassador program, this percentage can be reduced even further.
CryptoProcessing.com supports 20 of the most popular digital currencies, including Bitcoin, Ethereum, Tether, Dogecoin, and Tron. For fiat currencies, the service accepts more than 40 major destinations, including USD and EUR, via SEPA and SWIFT.
Additionally, the processor offers extensive customization with multiple payment tools; options such as billing, payment links, channels, and plug-and-play make the solution great for those looking for a customised approach.
Although digital assets are often considered a grey regulatory area, CoinsPaid’s CryptoProcessing.com is an EU-licensed crypto service provider that follows all European AML procedures to ensure transparency and security in all operations. In addition, the platform uses blockchain risk assessment to identify and remove fraudulent transactions.
If a company wants to expand into several jurisdictions at the same time, it is not necessary to combine local payments for each jurisdiction. Instant conversion to fiat and guaranteed interest to prevent unwanted slippage reduces volatility, while companies do not need to have a crypto background.
Thus, thanks to its numerous payment tools, CryptoProcessing.com is adaptable to any business model while providing a competitive advantage and extensive marketing opportunities.
Coinbase not only advertises itself as one of the best hot wallets in the world, but it can also be used as a crypto gateway. This facilitates the instant conversion of bitcoin to fiat without the merchant requesting a withdrawal. After all, it has been named one of the best Bitcoin payment providers.
In addition, the exchange offers this service completely free of charge for the first $1,000,000. After that, there is a 1% delivery fee. The only downside to Coinbase is that it works in a remarkably limited number of countries.
Crypto.com offers a “Payment Payment” service for merchants. This system is highly specialized and customized for the e-commerce market. There are ready-made plugins that can be used with services like Shopify, and the number of supported countries is remarkably large.
With settlement fees of only 0.5%, Crypto.com charges the lowest fees of any of its competitors. It also has a partial discount system where merchants can redeem rewards. However, this low rate comes at a price: the platform’s high level of automation can make it inconvenient for businesses that require a personalized approach.
Crypto gateways are here to stay.
Regardless of the crypto solution you choose, the proof is in: businesses are adopting crypto at a record pace. According to the latest data, global ownership of digital assets is already
4.2%, with more than 320 million crypto users worldwide. Thus, mass adoption is in full swing, forcing companies to integrate crypto as a payment option.