- The world of cryptocurrency is rapidly evolving beyond the bailiwick of tech geeks and ambitious traders.
- 50 percent of large businesses use crypto for cross border transfers, and more than 70 percent of retail merchants say they either accept crypto payments or they intend to do so in the next two years.
That’s good news for the crypto community, which has always said mainstream adoption is only a matter of time. It has also led to a rush of service providers jostling to establish themselves in the crypto payment gateways space. The result? A choice of different cryptocurrency payment gateways to choose from, each with its own pros and cons.
So how is a retailer with only rudimentary knowledge of crypto to choose the right one? We will run through the main factors to consider and questions to answer. But first, let’s address a fundamental question.
What does a crypto payment gateway actually do?
A crypto payment gateway is an online platform that allows your business to accept digital currencies like Bitcoin, Ethereum or Tether in exchange for goods and / or services. In an online business, the customer simply selects crypto from a dropdown in the checkout area of your website. In a physical shop, the customer can transact directly with an EPOS reader from a digital wallet. Neither are so different than paying using a mobile wallet like Apple or Google Pay.
When the customer selects crypto payment, he or she then enters a transaction window that locks the exchange rate for the transaction value. The transaction is completed instantly and the funds are either held in the merchant’s virtual wallet or can be transferred straight to a fiat account, eliminating any risk of exchange rate losses.
Choosing the right cryptocurrency payment gateway for your business
Now we understand what a crypto gateway is and what it does, we can look at the factors to consider before committing to one.
- Cost – different gateways charge different fees. Some, like Unipayment, operate a pay as you go system, while others charge on a monthly or annual flat rate. The good news is that fees are generally low, perhaps one percent, so using a payment gateway will not eat into your profit margins.
- Choice of currencies – there is more to crypto than Bitcoin. As customers become more knowledgeable about cryptocurrencies, they are starting to explore altcoins and stablecoins. Make sure you choose a gateway that can cope with different cryptocurrencies. For example, UniPayment can process Bitcoin, Ethereum, Dogecoin, Litecoin, USDT payments and several others.
- Security – ensuring the security of your customers’ information is of vital importance. Check what measures the provider has in place to ensure transactions are protected.
- Ease of integration – the cryptocurrency payment gateway you choose must be easy to integrate with your website. Check for smooth and seamless integration and compatibility with your website platform.
- Service and support – you need to be confident that any problems will be resolved quickly. Does the payment gateway offer instant support, for example by phone or chat?
- Check the reviews – there is no better judge than the voice of experience so pay close attention to user reviews. These will give a good indication of quality and, in particular, of service levels.
Making the most out of crypto
Ultimately, a cryptocurrency payment gateway will bring benefits by providing more choice for customers and allowing you as a merchant to take advantage of low transaction fees, fast transactions and the best possible security. It is also worth remembering that cryptocurrencies are still at an early stage of evolution and we are only starting to see the additional possibilities blockchain can bring.
There are dozens of crypto payment gateways out there, so there’s no reason to compromise. Keep the above points in mind as you weight up the options to choose the one that fits best with crypto’s role in your retail strategy.
