Nowadays, more and more users are familiar with cryptocurrencies and transactions using cryptocurrencies. On the other hand, with the innovation of Blockchain technology, cryptocurrencies are gradually recognized. In some countries, people have also begun to build a legal framework to accept cryptocurrencies as assets with transaction value. Very early, just a few years after the invention of Blockchain (2008), some famous companies in North America accepted Bitcoin for their goods purchase transactions.
Now, let’s examine some descriptions of how payment gateways work, which allow users to use cryptocurrencies to pay for goods on some platforms.
When you have cryptocurrencies and want to use them to buy goods, how will you do it? First and foremost, the store you are visiting has or does not have the function to allow buyers to pay with cryptocurrencies. Now, let’s figure out what a cryptocurrency payment gateway is.
What is a cryptocurrency payment gateway?
Like regular payment gateways, a cryptocurrency payment gateway performs the payment function first. However, it will create an additional method of accepting cryptocurrency payments and allow buyers to choose the currency they have available to make payments and complete transactions. A cryptocurrency payment gateway is seen as a bridge between buyers, sellers, and blockchain technology without going through any intermediary steps.
How a Cryptocurrency Payment Gateway Works?
Initiating a transaction:
After a customer decides to purchase cryptocurrency, the customer must click on the cryptocurrency option that the customer wants to use to pay.
The seller’s online store must integrate with a payment gateway that allows the seller to accept cryptocurrency payments.
Transaction Processing:
As soon as the payment gateway receives a purchase order in a specific cryptocurrency from the buyer, the transaction will be processed. Thanks to ever-improving technology, the processing takes only 1 minute or less. The buyer must allow the Payment Gateway to check whether the buyer’s e-wallet has enough cryptocurrency. The payment gateway will also automatically convert the transaction value to the equivalent value of the cryptocurrency and notify the customer.
Some payment gateways provide an automatic conversion service to the local currency to avoid market fluctuations. This can help reduce the risk when you are holding cryptocurrency. However, if you use this service, you must pay an additional fee to the payment gateway.
After the transaction is processed, the payment gateway will verify it on the Blockchain. Unlike conventional payment gateways, no intermediary is involved in this transaction process, reducing costs for buyers and sellers. On the other hand, this process is transparent and highly secure.
Complete the transaction:
When the transaction is completed, the seller will receive a notification that the money has been received, and the buyer will be confirmed that the transaction is complete.
On the seller’s side, the Payment Gateway allows the seller to choose the withdrawal method by transferring money to a bank account in local currency or withdrawing cryptocurrency to an e-wallet.
XaiGate is considered a trusted cryptocurrency payment gateway for businesses. Users can completely trust and feel secure using the platform provided by XaiGate. We provide a user-friendly, safe payment gateway that accepts most cryptocurrencies today. Integration into users’ online sales pages is also easier and is always supported 24/7 by the XaiGate team.
Visit us: https://x.com/mxaigate
