More and more companies and businesses worldwide are starting to FINALLY take notice and integrate Bitcoin and other cryptocurrencies as acceptable payment methods for their e-commerce stores and services. One of the great things about crypto is that it is a universal currency that holds the same rate in the US as it does in India. This provides consistency for buyers and sellers and makes the online purchasing process smoother.
But, like with all types of currency, there needs to be some sort of “processor” or “middle-man” sort of speak to move the transaction. This is called a cryptocurrency payment gateway. These payment gateways allow businesses to accept crypto as payment and also receive fiat money in exchange. It has revolutionized the e-commerce world and is helping crypto become more acceptable and mainstream as a payment method.
In this post, we are going to discuss the ins and outs of cryptocurrency payment gateways, which ones are the best, and the most anonymous for Bitcoin transactions and how to transfer your crypto to your cold wallet after making or receiving a payment.
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What are Cryptocurrency Payment Gateways and How Do They Work?
A cryptocurrency payment gateway works as the middleman between the merchant and the customer, processing the transactions made between them. It is important to make clear that a crypto payment gateway is not necessary for accepting crypto, you can do so directly to a cryptocurrency wallet – which we will explore further along in this post – but, for frequent transactions and e-commerce shops, it might be a helpful tool to have because it helps to organize the payments and transactions for you. It also allows sellers to transfer crypto into fiat money directly after receiving the payment.
As a merchant, the way a payment gateway would work is that your customer would probably choose to pay with crypto at check-out (either from your online store, an app or another website), and then, the payment gateway would convert the crypto into the currency of your choice at the market value of that moment, and directly deposit it into your account or wallet. The currency you choose can be a variety of different crypto or fiat money. Just be sure that your country’s regulations on crypto are in line with the transactions that you are making!
Of course, there are fees involved, like any other bank or transaction institution would charge but the rate depends on the payment gateway you partner with.
3 Best Crypto Payment Gateways
Coinbase Commerce
With hundreds of currencies and wallets available, Coinbase Commerce allows customers to connect and pay with crypto. Thousands of merchants globally already are using Coinbase Commerce to accept payments as it is known for having low fees and an easy-to-use interface.
✅ Pros: Offers direct bank deposits in 38 countries, and supports multiple cryptocurrencies.
❌ Cons: Requires KYC for higher transaction volumes, and is not available in all countries.
BitPay
BitPay is great for individuals and business owners because you can buy, and sell using it and also pay your bills with the app. You can link your credit card or debit card to their system for easy payments and transfers.
✅ Pros: The BitPay card is available for easier withdrawals, and supports multiple cryptocurrencies.
❌ Cons: Requires KYC, and charges a 1% processing fee on transactions.
CoinPayments
Available in over 190 countries and partnered with 100+ thousand merchants, CoinPayments is a trusted crypto payment gateway. Easy to use for both businesses and individuals, they offer fiat conversion options and “real-time” global payments.
✅ Pros: Supports over 2,000 cryptocurrencies, and has low transaction fees for merchants.
❌ Cons: Interface can be complex for beginners, and KYC is required for higher volume transactions.
Overall, these are great cryptocurrency payment gateway options. They are well-known and have been functioning for some time now, giving buyers and sellers peace of mind. But one downside that they have in common is the compliance with KYC regulations.
KYC (know your customer) is a regulation set in place for institutions to gather users’ personal information. This takes away from user privacy and security. For those looking to exchange crypto anonymously, there are payment gateways that do not require KYC compliance.
Top 3 Cryptocurrency Payment Gateways Without KYC
Crypto.com Pay
Their motto is “to accelerate the world’s transition to cryptocurrency” which is why Crypto.com Pay made the move from being only an exchange to also a crypto wallet and crypto payment gateway.
✅ Pros: No KYC for basic account setup, and integrates with various e-commerce platforms.
❌ Cons: There are transaction limits for non-KYC accounts, so you need to keep track of the number of exchanges made.
BTCPay Server
A Bitcoin-oriented payment processor, BTCPay Server is a good choice for anyone looking for privacy, and security.
✅ Pros: It is an open-source payment processor, with no fees or KYC rules.
❌ Cons: A higher level of technical knowledge is needed for set-up and maintenance.
CoinGate
Offering instant crypto to fiat exchanges and working with over 70+ cryptocurrencies, CoinGate is another top choice for smaller e-commerce merchants and customers who want to keep their private information secure and out of third-party organizations.
✅ Pros: No KYC for small to medium businesses.
❌ Cons: Limited customer support is available, and KYC regulations are required for larger transactions.
How to Accept Bitcoin Payments Directly Into Your Cold Wallet
Accepting Bitcoin payments or other crypto from a payment gateway does not need to be complicated or stress-inducing. Luckily, the steps in transferring your digital funds into a trusted cold wallet, like that of Material Bitcoin and others, for long-term storage are fairly easy and straightforward.
First things first, make sure that the cryptocurrency payment exchange that you pick supports transfers to a cold wallet. And trust us, if you are planning on storing crypto long-term, especially as part of your business model for buying and selling goods, you are going to want a cold wallet for the safety and security of your crypto.
Once you have signed up for a crypto payment gateway, you need to sync your cold wallet to it. You simply plug in your cold wallet’s address into the payment gateway and now you can securely transfer your crypto payments to your wallet.
Crypto Payments for Your Business
Accepting crypto and embracing it as a payment method is a great way to expand your business to different customers from all around the world. Not only does it help with providing security to those who don’t feel comfortable using credit cards online, it pushes your product to new global clients. Don’t forget to protect your earnings by transferring your crypto to a cold hardware wallet for long-term storage!
Have more questions? Check out the FAQ section for more info. Happy selling!
FAQ
Which is the best payment gateway?
Which is the best payment gateway?- Depends on your business needs. Take transaction volume, desired cryptocurrencies, and KYC compliance into consideration.
What are my options for high volume and security and No KYC regulations?
- High volume & security: Coinbase Commerce, BitPay.
- Less KYC: BTCPay Server for privacy and flexibility.
What is the best crypto payment gateway without KYC?
- BTCPay Server is a privacy-focused payment gateway, that is an open-source solution with no KYC requirements for Bitcoin payments, while Crypto.com Pay provides an easy setup, supports multiple cryptocurrencies, and does not require KYC for basic transactions.
What is the most widely accepted crypto payment?
- Bitcoin is the most recognized and widely accepted cryptocurrency at the moment. But, Ethereum is another popular choice among crypto enthusiasts.
