What is a Cryptocurrency Payment Gateway?

Payment Gateways – We are all aware of it and use it very often to make payments for online or offline purchases. In the realm of payment gateways, there has been a new addition, a cryptocurrency payment gateway, where cryptocurrencies are used in place of fiat counterparts to make the payments. With Cryptocurrency development in Kolkata raging ahead, new crypto exchange platforms are on the rise which suggests that virtual assets can be used side-by-side fiat currencies today.

Cryptocurrency Payment Gateway – What is so intriguing about it?

As depicted by service providers specializing in Digital asset transactions, a crypto payment gateway is one such gateway that allows a vendor or a business to send or receive payments from customers but in crypto only. A merchant can use the payment gateway to receive payments for selling their goods or even offer online services using an eCommerce storefront.

Key takeaways –

·         Prompt crypto to fiat or fiat to crypto transactions

·         Involves the most secure technology available

·         Smoother crypto app integration and usage

·         Comes integrated with all forms of payment solutions

·         Transparent transactions provided to the customers

Using the payment gateway a number of cryptocurrencies like Bitcoin, Ethereum, Stable coins, and other types can be utilized to make or receive payments (user & merchant). This form of a payment gateway can be quite similar to the payment gateways used by banks or chip & pin transactions. Offering top-notch security features a cryptocurrency payment gateway makes way for faster transactions.

How does a cryptocurrency payment gateway function?

There are no fixed guidelines followed by a cryptocurrency payment gateway but functions the same way as traditional payment gateways function and work. The only significant difference is that a crypto payment gateway will accept payment from a digital wallet and not from debit or credit cards provided by banks.

·       To make a payment, the user needs to place an order which enables the platform to encrypt the payment details.

·      On receiving encrypted data, the merchant can use an encrypted SSL to transfer it to the owner of the payment gateway.

·      Payment will be further transferred to the payment processor and let the intermediary work on it.

·         An acknowledgment code will be sent by the payment processor, where the code will contain all payment details.

·    Acknowledgement code will be forwarded to the website or application implanted by the user.

·        At the end, the payment transaction will be completed and can be viewed by the user on the platform.

The main purpose of the payment gateway is to handle important transactional information shared by merchants and users who make payments using cryptocurrencies.

Decentralized payment service is best utilized for dealing with incoming or outgoing cryptocurrencies helping make payments for different purchases. With huge potential, cryptocurrencies have offered something that crypto investors and owners need to get it right. With a wide range of functionalities and a combination of low fees, ease-of-integration for merchants and sellers, a cryptocurrency payment gateway can be the right choice to invest in.