Cryptocurrency, in recent years, has become more popular and widely used by consumers all around the globe. To accommodate this rise in crypto usage, business owners are starting to adopt payment processors for cryptocurrencies into their workflow in order to accept crypto as a payment method and reach more customers. In this article, together with XAIGATE, let’s discuss in details what payment processors for cryptocurrencies are, how they work, and the top 3 payment processors for cryptocurrencies in 2024.
What are payment processors for cryptocurrencies?
Cryptocurrencies
Cryptocurrencies, different than traditionally-used fiat currencies, are digital forms of currencies. With Bitcoin being the first crypto ever made, the aim is to decentralize financial power from a central authority and ensure everyone has access to the crypto market regardless of their backgrounds (user anonymity). Because of crypto’s privacy nature, many users around the world are drawn towards it, making it become more and more commonly used in all businesses.
Payment processors for cryptocurrencies
Since cryptocurrencies are different than fiat currencies, in order to accept crypto from consumers, business owners would have to use their own crypto wallets or payment processors for cryptocurrencies. Since accepting, verifying, managing crypto is very time-consuming and requires high expertise, using a crypto payment processor service is the better choice for most businesses.
A payment processor for cryptocurrency is a blockchain-based software that processes crypto payments from consumers and settles them into merchants’ wallets. Basically, similar to fiat currencies payment processor and bank credit cards, payment processors for crypto are digital currencies processors and facilitate transaction between consumers and merchants.
Learn more about crypto payment processors here: XAIGATE: Best crypto payment processor for business 2024
Differences between payment processors for cryptocurrencies and crypto payment gateways
The differences between crypto payment gateways and crypto payment processors are quite slim as they both serve to facilitate crypto transactions between consumers and business owners.
Read more on crypto payment gateway here: What is crypto payment gateway: A comprehensive guide
A crypto payment processor processes crypto payment from consumers and verifies the information and cryptocurrencies value through a blockchain technology. While a payment processor simply processes payments, a crypto payment gateway provides merchants with a platform to accept crypto payment, processes the payment, notifies both the merchant and consumer if the payment goes through, and settles the merchant’s payment in their wallet. Both crypto payment gateways and payment processors for cryptocurrencies are crucial to businesses who want to accept crypto as a payment method.
How do payment processors for cryptocurrencies work?
Different payment processors on the market have unique features to stand out amongst their competitors. However, all processors adopt a somewhat similar workflow:
- Businesses integrate payment processors for cryptocurrencies into their website
- Customer chooses to use cryptocurrencies as their payment methods to pay for goods and services at checkout
- The crypto payment processor receives secure crypto information from a crypto payment gateway integrated into the business website
- The processor verifies the amount of crypto paid and security of the information
- It sends the information to the blockchain required to conduct the transaction
- It gets back an approval or denial from the blockchain network
- Crypto payment from the customer is processed and settled into the merchant’s wallet in the form of crypto or fiat currencies
Criteria for best payment processors for cryptocurrencies
Different processor services have different qualities, and there are certain commonly used metrics to evaluate a crypto payment process:
- Cryptocurrencies accepted: The more diverse cryptocurrencies a processor can process, the better since it offers businesses more opportunities for global customer outreach.
- Processing times: In order to provide the best customer experience, it is crucial that processing time is minimal for crypto payment processors. This also ensures businesses can be run smoothly and without delays.
- Fees: Different processors charge different fees. Depending on features that businesses need, fee is an important factor as too high of a fee can lead to high overhead cost.
- Security: Similar to fiat currencies payment processor, crypto payment processor needs to be secure and have preventive measures in place to prevent fraudulent activities and data breach. This is to protect both the merchants and the consumers and ensure all transactions are safe.
Top 3 best payment processors for cryptocurrencies
XAIGATE
XAIGATE is the leading payment processor for global crypto payment processor. With its friendly UX/UI and ability to process multiple cryptocurrencies from all over the globe, XAIGATE has proven to be the top choice for businesses who are looking for an affordable service but still offers reliable and secure service with extra features. Some of our leading advantages include:
- Low processing fees: Competitive rate at 0.2%
- No monthly maintenance cost
- Easy setup: User-friendly UX/UI
- Integrations into e-Commerce stores
- Invoice services: XAIGATE assist clients with requesting payments and processing them through our blockchain API.
- Global payments: We accept crypto payments from all over the world.
- Diverse cryptocurrencies accepted
CoinGate
CoinGate is a good payment processor option for companies based outside of the United States. With its ability to accept multiple currencies, CoinGate offers businesses opportunities to reach a wide international consumer pool. Some of CoinGate’s features include:
- Good integrations with eCommerce and online websites
- Protection from price volatility
- Fiat settlements available
- Support multiple cryptocurrencies
BconGlobal
BConGlobal is a great P2P (Peer-to-Peer) payment processor that allows you to use your wallets for sending/receiving crypto. You can also receive payment for goods and services in a P2P format, directly from your users directly to the seller’s wallet. Some of BConGlobal’s unique pros include:
- No hold time as it is a non-custodial processor
- Easy integration
- No KYC
- Convenient as payments are transferred directly to your wallet
- Low transaction fee at 1%
You might want to read more on crypto payment gateway without KYC: XAIGATE: Top crypto payment gateway without KYC
If you have made it this far in the article and are looking for the best payment processors for cryptocurrencies, we are always happy to assist you every step of the way and ready to answer all your questions should you have any. Reach out to XAIGATE today if you are interested and rest assured we will aid you in advancing your business to the next level!
