Why are businesses starting to adopt crypto payment gateways?

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According to Checkout.com’s report, 77% of merchants who choose to accept crypto as payment see an increase in cross-border sales. It’s no surprise, then, that around a quarter of all online businesses are looking to offer crypto payment methods by 2025, a number that will only increase as the education gap narrows.

And it’s not just a local phenomenon. According to recent data, around 15,174 companies worldwide use Bitcoin payment processing, with only 2,300 of these companies located in the United States. So it is clear that mass adoption is on the rise and the statistics are verified. Let’s explore the reasons for this change and see what advantages crypto payments offer businesses over traditional fiat gateways.

Benefits of Cryptocurrency Payment Gateway

Although many are already familiar with the basic benefits of digital assets, there are certain aspects that make crypto particularly attractive to businesses of different scales and industries.

Cryptocurrency Gateway Reduces Processing Costs

One of the most frequently cited benefits is lower fees. While in the fiat world a merchant can expect to pay upwards of 3.5% for each transaction, fees can be as low as 0.8% when using the best cryptocurrency payment gateways.

Cryptocurrency processing eliminates chargebacks and rolling reserves

Another financial incentive relates to the impossibility of chargeback fraud. As all transactions on the blockchain are final by default, merchants will no longer have to deal with rolling reserves due to chargeback legislation. These funds can be leveraged within the business and used to increase revenue.

Crypto Gateway Payments Allow Businesses to Scale and Grow

Unlike banking, crypto is accessible worldwide, all you need is internet connectivity. This allows traders to significantly increase their cross-border potential and reach a wider market. While fiat-only businesses tend to serve their local cohort, digital assets know no bounds. This is extremely important not only for revenue generation, but also for advertising opportunities. The only way to achieve such global coverage in traditional finance is to offer payments in over 200 local fiat currencies, which is simply not feasible.

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Crypto gateways offer a 99% acceptance rate

Then there is speed, as crypto payouts are instantaneous. For merchants using PayPal, these payments can take up to 5 business days. This inefficiency slows down business, resulting in lower revenues. Plus, with instant payments, forecasting becomes much easier. Apart from the processing time, the refusal rate should also be considered as a parameter indicating the number of rejected transactions. A high rejection rate can lead to an increased customer abandonment rate, resulting in lost business.

In the traditional payments industry, automated AML systems often reject payments due to false flags. As a result, the decline rate with fiat processors is around 15%, while it’s virtually non-existent when it comes to digital assets. Thus, the best crypto providers offer an acceptance rate of 99% while maintaining the immediacy and profitability of transactions.

Instant payments exist on the blockchain because no central body is needed for transaction verification purposes. Moreover, they operate 24 hours a day, 24 hours a day, 7 days a week, unlike banks’ rigid schedules. As a bonus, processors like CryptoProcessing.com operate their own nodes to ensure instant transactions even if the network is overloaded.

The best crypto payment processors

Despite the benefits, crypto still comes with risks, as it is still unregulated in many countries. Therefore, it is important to partner with a reputable cryptocurrency processing provider to ensure that fines or a bad reputation do not reach you later. So what is the best tool to uncover these benefits for your business? There are a few options following a series of collapses by crypto giants.

BitPay

The traditional option would be BitPay. Since 2011, the platform has enabled a hands-off approach for its clients. Merchants can receive payments in real currency, unlike the crypto their customers prefer to use, the service instantly converts funds. With a 1% processing fee, the service is relatively inexpensive compared to fiat gateways. Although not entirely global, BitPay offers payments in 8 currencies with direct bank deposits in 38 countries.

However, the service has been the victim of bad press more than once. In late 2014, BitPay lost over $1.8 million in bitcoin after a director fell victim to a phishing scam. Later, in November 2018, BitPay warned its users about an infected piece of code that was created to steal the private wallet keys of people who used its open-source wallet. These incidents of bad press aside, BitPay remains a solid and reputable option.

CryptoProcessing.com

CryptoProcessing by CoinsPaid is the leading payment gateway for cryptocurrency with over 16 billion processed. Indeed, the service is responsible for almost a tenth of all bitcoin transactions worldwide. Notably, CryptoProcessing.com offers functionality for regular and non-recurring cryptocurrency payments via API, as well as the ability to accept digital assets with just a few clicks with its multi-currency crypto wallet for businesses.

The service has no setup or monthly fees and only charges a transaction fee of 0.8%. Additionally, this percentage can be further reduced by using the platform’s native token or participating in the Ambassador program.

CryptoProcessing.com supports over 20 of the most popular digital currencies including Bitcoin, Ethereum, Tether, Dogecoin, and Tron. When it comes to fiat currencies, the service accepts over 40 major assets, including USD and EUR, via SEPA and SWIFT.

Additionally, the processor offers a high degree of customization via multiple payment tool options such as billing, payment links, channels, and plug-and-play, making it a stellar solution for those looking a tailor-made approach.

Although digital assets are often considered a gray regulatory area, CryptoProcessing.com by CoinsPaid is an EU licensed crypto provider, compliant with all European AML procedures to ensure transparency and security of all activities. Moreover, the platform uses the blockchain risk scoring system to detect and eliminate any fraudulent transactions.

If a business wants to expand to multiple regions at once, there is no need to connect local payments for each jurisdiction. Instant conversion to fiat with a guaranteed rate to avoid unwanted slippage reduces volatility issues, while companies are not required to have any crypto knowledge.

So, with a large number of payment tools, CryptoProcessing.com is customizable to fit any business model, while providing competitive advantage and broad marketing opportunities.

Coinbase

Coinbase not only presents itself as one of the best hot wallets in the world, it can also be used as a crypto gateway. It facilitates the instant conversion of bitcoin to fiat without the trader requesting a withdrawal. Ultimately, it was cited as one of the best bitcoin payment providers.

Moreover, the exchange offers this service completely free for the first $1,000,000 of trades. Thereafter, a settlement fee of 1% is applied. Covering a wide range of currencies and vertical markets, the only downside of Coinbases is that it operates in a particularly limited number of countries.

Crypto.com

Crypto.com offers a Pay Checkout service to merchants. This system is highly specialized and adapted to the e-commerce market. There are pre-made plugins that can be used for services like Shopify, and the number of countries supported is particularly high.

With only 0.5% settlement fees, Crypto.com charges the lowest fees of all its competitors. It also has a component discount program where its merchants can claim rewards. However, this low rate comes at a price with a high degree of platform automation, businesses requiring a more personalized approach may find it a troublesome setup.

Crypto Gateways Are Here to Stay

Whichever crypto solution you choose, the proof is that pudding companies are starting to accept crypto at an all-time high. According to the latest data, the global digital asset ownership rate is already at 4.2%, with over 320 million crypto users worldwide. Thus, mass adoption is in full swing, prompting businesses to incorporate crypto as a payment option.

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