A Detailed Guide for Crypto Startups - Cryptocurrency Payment Gateway Development (Part I)
Cryptocurrencies are the first thing that comes to mind for all types of users when it comes to digital currency. These currencies are decentralized digital currencies that are maintained by a distributed database or ledger shared among computer network nodes rather than being governed by or affiliated with a banking authority.
Many business peeps and enterprises are offering digital fiat payment gateways at present but with the growing interest in cryptos, anyone can provide their clients with a crypto payment gateway option.
You are aware that cryptocurrency payment gateways are growing and reaching new heights every day. That is why most startups and entrepreneurs are looking on for crypto adoption, and this is reflected in the surge of cryptocurrency payment gateway development services in the blockchain space.
Cryptocurrency - Over The Years
Although cryptocurrency has been widely accepted by businesses and entrepreneurs, and it has gained prominence as the most preferred mode of payment, owing to its decentralized nature and cryptographic methods allowing people to buy, sell, or exchange without any third party or intermediaries, major nations have opposed and have not shown a positive attitude towards it.
Cryptocurrency Payment Gateway
Simply put, it is a payment processing service similar to existing traditional fiat payment processing services that enables the seller and the buyer to exchange cryptocurrencies like Bitcoin, Ethereum, and so on. The transaction is made by transferring the currencies to an exclusive address created by the cryptocurrency payment gateway.
Because Blockchain technology is known for its security and the ability to transfer data with a minimal breach, cryptocurrency payment gateways are technically safer than existing fiat payment gateways. The transaction confirms when the exchange of crypto and fiat currencies. Ultimately, the merchant's bank account receives the fiat funds.
Why Should You Choose Crypto Payment Gateway Business for Startups?
As cryptocurrency has evolved, there have been discussions about the concept of crypto exchanges, NFTs, and digital assets. For a time, people were concerned about the legality and technological viability of digital currencies. Nonetheless, cryptocurrencies are now dominating the market and have emerged as the most successful and sought-after business model. It is simple to attract the global crypto user base, and it is completely free of fraud.
A payment gateway typically makes money on each transaction by charging an MDR -Merchant Discount Rate, which is a fixed or allotted percentage/fee. Furthermore, global transactions involving multiple currencies are subject to an additional fee; however, there is no additional fee if the client's payment is accepted by the merchant in the same currency in which he is paid. However, there will be an additional conversion cost if the consumer pays in a currency other than the one received by the business. The additional fee is frequently 1%.
Features Of Crypto Payment Gateway
The Features of the crypto payment gateway map out to the following
Super Speed Transactions
Since there are no middlemen or third parties involved when using the Crypto payment gateway, transactions are made swiftly. this has the added advantage of transactions with no geographical restrictions.
Volatility
Cryptocurrencies are highly volatile meaning the crypto’s value can potentially be spread out over a larger range of value to the fiat currency. Hence, the crypto payment gateway will allow a business to convert her crypto coins into actual money or fiat if they are not intended to be kept for a long time.
Compatibility with OS
Android, iOS, and Windows operating systems are all fully compatible with decentralized payment gateways. The payment gateway can be integrated into an application or device without the merchants having to change any settings.
Auto Settlement option
One can easily connect the payment gateways to exchanges to convert cryptocurrencies into conventional currencies, stablecoins, or fiat by using a customizable auto-settlement option. By linking the payment gateway with well-known cryptocurrency exchange platforms.
Security
Security is a major concern when it comes to crypto payment gateways, as it is with any online transaction. Crypto payment gateways use several security precautions, including SSL encryption, two-factor authentication, and offline wallets to store funds, to guarantee the security of transactions.
No chargeback
Dealing with chargebacks, which are customer-filed objections on credit card transactions, can be incredibly taxing and cause firms to lose a significant amount of income. Businesses lose billions of dollars a year due to chargeback charges after becoming victims of credit card disputes. As banks or other financial institutions do not facilitate the use of cryptocurrencies, there is no one with whom the cardholder might submit a dispute to have the transaction reversed. The customer must dispute their claim with the merchant directly if they want a refund.
Pro-Player of Crypto Payment Gateway Development - MATICZ
Maticz provides custom crypto payment gateway development services that are reliable, seamless, and effortless to set up the crypto payment gateway along with other cryptocurrency exchange services, software development services, and smart contract development services that can automate and further fuel your business.
Final Words
Cryptocurrency is a revolutionary product of the blockchain concept that relies heavily on it. Simply put, it is a digital counterpart of fiat currencies, except that it is decentralized and accepted as a means of payment by legal individuals. Businesses take advantage of this factor and make use of the crypto payment gateway development.