When and How Do You Use a Cryptocurrency Payment Gateway?

Written by Mehak Gupta
2 mins, 15 secs Read
Updated On November 22, 2023

To accept cryptocurrency as payment, businesses need to connect with a cryptocurrency payment processor, or “gateway.”

Blockchain technology is used in healthcare, education, and supply chain, and digital currency payment processors are being developed. Crypto payment gateways are essential for the smooth functioning of businesses that want to accept cryptocurrency payments over traditional fiat currency transactions.

A crypto payment gateway may provide a simple method for a business to accept cryptocurrency payments without the hassle of maintaining a cryptocurrency wallet or converting a digital currency to fiat cash. This makes accepting cryptocurrency easier for companies and more likely for customers.

A Payment Gateway is a Technique to Accept Bitcoin Payments

BitHide is just an example of a crypto payment solution that let businesses accept and process cryptocurrency payments. Hence, firms’ bank accounts are credited with fiat money. In this way, businesses may remove cryptocurrency-related doubts by providing consumers with a variety of payment choices.

You don’t need a crypto payment processor to take cryptocurrency. Nonetheless, shop owners may take cryptocurrency payments right from their own wallets. But, with the help of crypto payment gateways, merchants may easily accept cryptocurrency as payment alongside fiat cash and settle transactions in real-time.

Custodial and non-custodial bitcoin payment channels exist. Custodial crypto payment gateways deposit merchants’ earnings into their accounts from which they may withdraw monies to their own wallets. On the other hand, noncustodial crypto payment gateways just process the payment and remit the proceeds to the merchant’s wallet as soon as possible.

Fiat payment gateways connect bank accounts to the payment system, however, they only take national currencies like the US dollar, euro, etc. Fiat payment gateways verify the bank card and electronic wallet information of consumers and then either approve or reject the transaction.

The Process of a Cryptocurrency Payment Gateway

The crypto payment gateway may help companies fulfill consumer demand for bitcoin payments without investing much in cryptocurrencies. Follow the link for detailed information: https://bithide.io/usdt-payment-gateway. Customers are charged a price for the service in exchange, which helps the business maintain its viability. The providers must pay a charge to the cryptocurrency network’s transaction validators, often known as miners, in order to facilitate the payments.

Cryptocurrency payment gateways handle transactions like this:

  1. A bitcoin payment gateway lets clients use cryptocurrencies to buy products and services online or in-store.
  2. The consumer is then bound to a time period during which the market exchange rate between their selected fiat money, say the British pound, and the cryptocurrency they want to spend is frozen.
  3. The cryptocurrency payment gateway instantly converts the transaction to the fiat currency of your choosing.
  4. Payment is sent directly into a business bank account, from which they may be withdrawn or used for whichever reason the owner sees fit.

Does Tether Have a Payment Gateway?

Tether (USDT) is a stablecoin that supports crypto payments and operates on ERC20 and TRC20. Using the application programming interfaces (APIs) made available by both markets, retailers may create a custom checkout page over which they retain full creative control. APIs enable program-to-program data interchange.

Businesses that want to accept Tether transactions must first acquire a cryptocurrency merchant wallet that is compatible with US Dollar Tether (USDT).

BitHide is among the top solutions on the market if you know you need a Data processing solution but aren’t sure which one to buy out of the box. 

Author: Mehak Gupta