Recently, cryptocurrencies have surfaced as a promising new asset class, with their autonomous character and lightning-fast transaction rates making them increasingly attractive for online commerce. Cryptocurrencies have battled to gain broad adoption due to the lack of easy and trustworthy payment-handling choices, just like any new technology. Jump into the fast-growing field of coin payment portal creation, which holds the key to cryptocurrencies’ maximum potential as a payment method.
What exactly is a cryptocurrency payment gateway?
A cryptocurrency payment gateway lets companies accept Bitcoin, Ethereum, and others. It verifies deals and facilitates the exchange of cryptocurrency for conventional money or other cryptocurrencies between the retailer, the consumer, and the blockchain network.
Different Cryptocurrency Payment Processors
If a store wants to start accepting cryptocurrency purchases, a cryptocurrency payment processor is a must-have. Different types of money processors exist, and they all perform slightly differently. The various options for accepting cryptocurrency payments will be covered below.
1. Hosted Payment Gateway
Payment processing is outsourced to a third party when using a managed payment method. If a business uses this portal, customers will be taken to the payment processor’s site to finish the purchase. The supplier handles everything associated with a transaction, including verification, conversion to foreign money, and final deposit to the merchant’s account. Using this method of accepting payments does not necessitate advanced computer skills.
2. Non-Hosted Payment Gateway
The vendor must install the payment gateway on their own computers if the gateway is not managed. This payment method allows for greater adaptability and personalization than others. With a non-hosted payment method, business owners can retain their secret credentials and exert more influence over the security of their transactions.
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3. Self-hosted Payment Gateway
For orders to be processed and cryptocurrency to be exchanged using a self-hosted payment portal, the seller must set up their own computer. This payment option offers the most security and full financial transaction control. However, setting it up and keeping it running takes specialized skills and equipment.
4. Mobile Payment Gateway
A mobile payment portal is a specialized payment processor compatible with mobile devices. This payment option is becoming more common as more people use their phones to shop. It works with Apple Pay and Google Wallet, allowing smartphone payments.
5. Fiat-to-Crypto Payment Gateway
Businesses can take fiat money like USD and EUR through a fiat-to-crypto payment channel. If a store wants to start accepting cryptocurrency payments but is wary of the inherent security risks, a payment processor is a much simpler method to do so.
The safety protocols used by bitcoin payment processors:
- Secure offline wallets are where cryptocurrency payment platforms keep the secret keys, making them impenetrable to hackers.
- To safeguard private information from prying eyes, cryptocurrency payment platforms employ cryptography and private lines of communication.
- Two-Factor Authentication: This security measure is used by payment processors to restrict account access to verified users.
- Money companies must follow all city, state, and federal rules.