Bitcoin payments: how to choose the right gateway to integrate
Since the first cryptocurrency was launched, its status has undergone multiple changes. At present, many businesses have adopted Bitcoin as a payment method, opening a great opportunity for merchants. Thousands of companies have already integrated a Bitcoin payment gateway to keep up with the times.
What is a gateway for crypto payments?
Many people are interested in what is Bitcoin payment gateway, as such an option is regarded as revolutionary for business. The gateway enables a merchant to accept payments in BTC and other cryptocurrencies (the list of digital assets depends on a certain gateway).
Bitcoin processors empower a customer to purchase goods and services for crypto. The whole process becomes straightforward and easy to use.
Why should a company add Bitcoin payments?
Blockchain technologies are dynamically integrated into diverse spheres, while digital currencies have started to conquer the financial world. BTC payments have numerous advantages in comparison with fiat transactions. The analytics point out the following as being the key pros:
- BTC payments are safe and secure. Users face no fraud cases and chargebacks. The blockchain network protects payments, while every transaction is approved by other network participants and encrypted.
- Fees for Bitcoin payments are the lowest. In most cases, the fee doesn’t exceed 1%. Note the more BTC you are going to transfer, the lower fee is charged.
- Payments are anonymous within the network. No one has the right to block a transaction or augment fees.
- BTC payments have no limits and boundaries. Send your funds globally, no matter the total amount.
These advantages attract more investors hence, a business owner should integrate a payment gateway that accepts Bitcoin to catch the attention of new consumers. Furthermore, this solution shows a merchant supports the scientific progress, opening new opportunities for potential clients.
According to Statista, the number of blockchain wallets opened by users globally has increased from 44.63 million in 2019 to 50.71 million in July 2020. Such a tendency shows crypto assets are rapidly gaining popularity among people worldwide.
How to choose the right gateway?
There are numerous gateways available for integrating with a merchant. Business owners are expected to take the following aspects into account:
- the number of listed virtual currencies (Some gateways support just BTC, while other processors work with diverse popular cryptocurrencies);
- fees (Each service charges different fees therefore it is a good idea to learn more before integration);
- license (When you integrate a licensed payment gateway for Bitcoin that meets the requirements of financial regulations, payments are safe and secure).
Thus, a company is advised to integrate a reliable licensed Bitcoin processor in order to provide customers with secure and innovative solutions.
How to accept BTC payments through a certain gateway?
There are two ways to accept crypto through a gateway. A company may open a Bitcoin wallet to obtain BTC transactions sent from a processor’s address. The second way is to get fiat currencies instantly converted by a gateway from Bitcoins. Such a solution is effective for companies that have no right to deal with crypto assets directly, according to the national legislation.
A merchant can generate a payment by following these steps:
- Follow the link to generate a payment.
- Create a unique BTC address to receive payments from your customers. When the Bitcoin payment gateway integration process implies other digital assets support, create addresses for all listed virtual currencies.
- Select the BTC payment provider to integrate.
- Verify your account to remove restrictions (newly opened accounts are frequently limited by equivalent of $1000 per one transaction).
- Specify the currency to get payments.
- Start working with Bitcoin hodlers.
As a result, a business owner generates a BTC address accompanied by some transaction parameters. Customers may get an address or a payment form, depending on a gateway. When a merchant wishes to obtain fiat currencies, crypto assets are converted directly after a transaction confirmation.
Which number of confirmations to select
The required number of confirmation depends on a client risk model and transacted amounts. Three confirmations are enough for small transactions. 6 confirmations make a transaction as secure as possible hence this amount should be chosen as maximum. A payment confirmation takes a consumer about 15-20 minutes. Clients need to undergo the following algorithm:
- A client selects certain goods and services.
- Customers choose BTC payment from the available options.
- The system issues a Bitcoin address. The type depends on a Bitcoin payment gateway. Some processors show an address and BTC amount to send. Others display a payment form with inserted information.
- A client sends the required amount of Bitcoins.
- Customers have to wait for the necessary number of confirmations.
- A transaction is completed. Merchants send goods or provide services.
Important notions and recommendations
When you are looking to find out how Bitcoin payment gateway works, take the following aspects into account:
- Apart from the service fee, there is a fee charged for a transaction from a temporary wallet or converting BTC into crypto.
- Bitcoin is volatile hence, convert your virtual assets into fiat money in case you don’t work with digital assets.
- 3 confirmations are enough for secure BTC payments. More confirmations lead to extending the time required for a transaction approval.
- Low fees are better for BTC payments. High fees the number of consumers.
BTC payments are regarded as the payments of the next generation hence the integration of a crypto payment gateway opens new perspectives for both merchants and consumers.