More and more businesses worldwide have started to accept cryptocurrency payments. Brands like Subway, Starbucks, BMW, and Microsoft are already on board. According to a report by Cointelegraph Research, approximately 30,000 merchants globally accept Bitcoin.
While most online businesses in the USA accept cryptocurrencies, some establishments, such as online casinos, are still restricted. This is mainly because real money gambling in most US states is restricted. Nonetheless, USA players can enjoy their favorite casino games at sweepstakes casinos. To play on these sites, you only need to purchase sweep coins.
That said, with over 420 million owners of digital currencies worldwide, the adoption of digital currencies has opened up new markets to businesses. To accept crypto payments, most businesses use crypto payment gateways.
In this article, we will explain how these gateways work and introduce five of the best options available to businesses in the USA.
How Crypto Payment Gateways Work
A cryptocurrency payment gateway, also known as a crypto payment processor, is a service that allows businesses to accept digital currency payments. Some of these gateways provide the possibility for a business to receive fiat money instead of holding cryptocurrency. This is useful for businesses that may not want to deal with the volatility in prices of cryptocurrencies.
Here is how these gateways basically work:
Integration
It requires the merchants to integrate this gateway into their checkout system, usually through the use of plugins, hosted payment pages, or APIs. The integration will take from two weeks up to eight weeks, based on how the respective business is set up.
For in-store payments, businesses generally require a physical device, such as a card reader that hooks into their POS.
Customer Payment
At checkout, customers who want to use cryptocurrency to make a purchase simply select the digital currency of their choice. The system populates the current exchange rate alongside a wallet address. With most systems, it’s a QR code that the customer sends the payment to.
Payment Processing
It processes the payment through the gateway, verifies the details of the payment, and confirms that the customer has transferred the correct amount.
Confirmation
Both the customer and the business are contacted with confirmation of the successful payment once the transaction has been validated on the blockchain.
Settlement
Businesses can opt to either get paid in cryptocurrency or in fiat. If the latter, then the gateway converts the cryptocurrency and transfers cash into the bank account of the business. This is when the fees are deducted. Some gateways offer instant conversion, while others may take upwards of a day or even more to settle funds.
5 Leading Crypto Payment Gateways
Companies in the United States have a lot of options for cryptocurrency payment gateways. Of course, there are more than just five good services, but the following are five of the best options:
BitPay
Launched in 2011, BitPay has become one of the big players in crypto payments. The company offers payroll and billing options for businesses, among other services. It is supported by 16 cryptocurrencies and has been responsible for over $5 billion in cryptocurrency transactions to date.
Coinbase Commerce
Coinbase Commerce is a famous name in the crypto space. You can easily integrate it into a website or application. Its customer support is great, too, and for companies that seek an easy and smooth way to handle crypto payments, Coinbase is a recommendable option.
CryptoPay
CryptoPay will serve as a trusted payment gateway for businesses in need of processing, as well as those in need of exchanging cryptocurrencies. Their fees are competitive and will thus prove very alluring for businesses that operate large transaction volumes. This payment gateway supports up to 16 cryptocurrencies.
BVNK
Although relatively new in the industry, BVNK has become a recommendable payment gateway for most online businesses. This platform supports 13 cryptocurrencies with over $5 billion in annual transactions. BVNK focuses on stablecoin settlements and cross-currency payments. They support several cryptocurrencies and fiat money, therefore becoming very flexible for any business with a reach across borders.
Coinremitter
Coinremitter offers low transaction fees of 0.23% per transaction. This allows the platform to be one of the most cost-effective cryptocurrency payment solutions targeted at business needs. It supports 12 cryptos and offers additional features such as invoicing and coin listing services.
Factors to Consider When Choosing a Payment Gateway
Choosing the right cryptocurrency payment gateway for your business is all about careful consideration. Here are some key factors:
Fees
Payment gateways usually require a normal fixed amount with a percentage of the transaction amount. These are seen to vary from at least 0.5% and go up as high as 3%. In a few cases, when the payment requires the conversion between two types of currencies, a markup on the exchange rate may also be charged by the gateway.
Times of Processing and Settlement
Crypto transactions are fast, generally speaking. Still, they get frequently delayed because of congestion over the blockchain. Multi-blockchain gateways will reduce all these delays.
Firms that settle in fiat must factor in the length of time it takes for the payment processor to convert and forward funds.
Ease of Implementation
Some offer low-code solutions like hosted payment pages that are easy to set up. Others offer APIs for even more control but might need technical support.
Payer Experience
A frictionless payment experience will incentivize customers to complete their purchases. Make sure the gateway provides wallet integrations that are in demand and have an easy-to-use interface.
Customer Support
Customer support is crucial to achieve faster resolution time. Hence, choose a gateway that offers dedicated account managers and technical support.
Compliance
The world’s cryptocurrency regulations are evolving. Choose a gateway that properly understands those regulations and exercises good compliance measures.
