How to Develop a Crypto Payment Gateway and Understanding How Crypto Payment Gateways Work.Today’s trend of online payments increases the efficiency of businesses.
Slowly all industries are adapting to online payment transactions where Crypto Payment Gateway development contributes to the dynamic market and trends. Cryptocurrency payments are predicted to grow up to 17% in the coming years.
The sudden boom in crypto increased when a statement was declared by Elon Musk, “Customers can buy cars using Bitcoin”. This statement not only increased the demand for the customers but the merchants also. Around 15,174 businesses are using Gateway development worldwide. The current situation of trends where businesses can grow is to adapt to the Crypto Payment Gateway.
Let’s discuss Crypto Payment Gateway development for your business and get
Crypto Payment Solutions as well from our experts.
About Crypto Payment Gateway
Crypto Payment Gateway is an online software application which allows merchants to deal in digital currencies such as Bitcoin, Ethereum and others. The digital currencies vary on the availability of the software application.
The connection between the merchants and the customers is through a crypto wallet to receive the payments in fiat or digital currency and to track the payment and notify the users. Moreover, it offers automated payment which makes it easier and more convenient for the customer worldwide.
How the Crypto Payment Gateway Works?
Crypto Payment Gateway is a well-managed software application that allows smooth and secure payments. The developers at DZ can help you create a hassle-free payment gateway. There is an appropriate approach to how the crypto payment gateway works. Further are the steps to understand the working.
1. Selection of goods and service
The initial step is the selection of a product by a customer where they choose their desired item. After choosing an item a list of cryptocurrencies is displayed. The list of cryptocurrencies shown is accepted by the merchant.
2. Unique payment transaction
A unique request is created by the customer after choosing an item. Each transaction has a unique request to make it secure. This unique request has the important details including the address where the funds are to be transferred.
3. Authorization of Each Customer
A cryptocurrency wallet is created and verified which is used to initiate the payments by the customers. The payments can be initiated by various options like scanning the OR code or copying the address of the cryptocurrency.
4. Involvement of Blockchain Network
After the authorization of payment by the customer the chosen cryptocurrency is broadcasted on the blockchain network. The blockchain network is selected by the chosen cryptocurrency by the customer (such as Bitcoin, Dogecoin, Ethereum, Solana, and others).
5. Blockchain Network Verification
The transaction is added to the blockchain network and waits for the verification to take place where the blockchain network ensures the security and mobility of the cryptocurrency selected by the customer.
6. Further updates
After the approval by the blockchain network, the payment is initiated and a notification is sent to the sender and the receiver about the payment.
7. Conversion of payment into desired currency
Sometimes the payment receiver prefers a different currency. In this situation, the currency conversion takes place at the current rate at the time of conversion.
Read: Difference Between Web Payment Service and Payment API
8. Completion of payment
After the conversion of cryptocurrency or the currency received directly by the customer, this completes the transaction. This process is a settlement for the merchant and the customer is in the preferred digital asset.
Why to consider a Crypto Payment Gateway?
Here are a few benefits which are listed below.
-
New platform to make payments
-
Reaching a wide range of audience
-
Improving financial performance
-
Lower the risk of fraud
-
Access to grow globally
1. New platform to make payments
Businesses are adapting new ways to make payments as this payment gateway allows them to be flexible and secure over older methods. This process of payment allows a convenient experience for businesses to operate in digital assets.
2. Reaching a wide range of audience
The payment gateway allows you to make transactions all over the world effortlessly. This enhances businesses to engage in international trade, avoid specific area restrictions and increase the target audience.
3. Improving financial performance
To improve financial performance, businesses often use this gateway. Also, to avoid any extra fees or expenses this gateway is used. Cryptocurrency transactions are much easier and more secure compared to traditional methods and are also cost-efficient.
4. Lower the risk of fraud
The transactions in the gateway are secure and lower the risk of fraud by the blockchain technology. The principles of cryptocurrency which are also known as cryptographic allow the transactions to be transparent, easy-going and secure.
5. Access to grow globally
As technology is updating cryptocurrency is expanding its customer base by which businesses get attracted. The future of cryptocurrency gateway is going to be advanced in the upcoming dynamic environment. Moreover, businesses adapt to dynamic changes to grow further.
Top 4 Utmost Crypto Payment Gateways
There are various platforms to use. Below are top 4 most platforms which are discussed.
-
Gocoin
-
CoinPayments
-
CoinGate
-
BitPay
1. GoCoin
- GoCoin allows businesses to make transactions in Bitcoin, Dogecoin, and other cryptocurrencies.
- It allows to transfer of desired cryptocurrency available on the platform at the time of checkout.
2. CoinPayments
-
This platform allows businesses to use a wide range of array of cryptocurrencies.
-
Also, makes the transactions secure and suitable for a variety of businesses.
-
CoinPayments offers plugins and APIs to make it as easy as possible.
3. CoinGate
-
CoinGate accepts various altcoins like Bitcoin and Ethereum which help sellers to receive payments.
-
Along with many e-commerce platforms, this platform also allows plugins and APIs.
4. BitPay
-
Businesses are allowed to make payments using Bitcoins and Bitcoin Cash on the BitPay payment processor.
-
Also, in the situation of fluctuations in the value of cryptocurrencies, this platform allows the sellers to receive the payment in their desired cryptocurrency.
Advantages of Crypto Payment Gateway Development
Some of the advantages are:
1. Wide range of customer base
Businesses that prefer digital assets encourage the platform to reach a wide range of customers even the platform gives a secure option to the businesses for the transactions.
2. Convenient for the merchants
As the Crypto Payment Gateway offers a wide range of customer base it is convenient for businesses to transfer digital assets more efficiently without any risk and fraud. The regular use can also be a factor by which the businesses have the rotation and it eventually grows.
Read: Metaverse Application Development
3. Low transaction cost globally
While using digital assets the platform charges fees which are comparatively lower than the fee while using traditional or other methods. The fees mostly are expensive in traditional or other methods when the transaction takes place across countries. However, the transaction of digital assets allows businesses to save in online transactions.
4. Secure transactions and avoid the risk of fraud
The gateway offers a secure network where the transactions of digital assets can take place safely and securely. The gateway conditions and working lower the risk of fraud, identity theft, or any kind of value fraud. Moreover, the gateway also helps for smoother and more transparent transactions to maintain the trust of merchants and customers.
5. Gateway fee
The gateway or platform charges a fee to use the given services and convenience. The cost of the crypto gateway varies on the services they are providing such as features.
The average fee can be around $20 to $40 as per the services and the platform chosen. This fee charge is hourly and includes the expertise of the team helpers and their experience which eventually help the businesses to grow.
Setting up a Cryptocurrency Payment Gateway
To develop a cryptocurrency payment gateway our developer can help your business. However, a few steps are to be followed to develop a secure and regulatory compliance gateway. These steps include planning and processing of blockchain network, setting up a wallet to manage the digital assets and connectivity of blockchain networks.
Further with the support of professionals the gateway is set by choosing appropriate APIs and software kits. The process is completed and ready to launch is when the plugins are implemented and a testing round.
Step 1- Planning and Processing of Blockchain Network
The first step is to plan the layout of the foundation of the gateway. The layout or design includes the features and selects a target cryptocurrency for the further transaction.
This step requires brief research to understand and choose the blockchain networks. This is an integrated process with rules and regulations. Also, at Decipher Zone Technologies you can find absolute solutions according to your budget.
Read: How to Hire and Pay a Freelance Software Developer
Step 2- Setting up a Wallet on the gateway
The next step is to set up a wallet to manage the funds. This step offers benefits such as the security of funds, safe storage, and implementation encryption. This step is focused on the working should be adhered to rules and regulations.
Step 3- Connectivity of merchants through different Cryptocurrencies
In the further step, the selection of the blockchain network is initiated according to the preferred cryptocurrencies. For the real-time transaction APIs and nodes are developed which allows for confirmation of the digital asset transaction.
This step is vital to have a transparent and secure transaction process between the parties involved in the digital asset transaction.
Read: Payment Facilitator vs. Aggregator
Step 4- Choosing Appropriate APIs and Software Kits for the Gateway
This step requires a vast knowledge to select the software kits and create a user-friendly platform. After choosing appropriately the process of implementation requires documentation and resources which helps in improving the working for the parties involved.
Step 5- Unique Payment Request
The next step involves the generation of the system which allows a unique payment request for each transaction. The unique payment transaction includes a few details like a QR code or crypto address. These important details allow the transaction to be transparent and effortless.
Step 6- Rules and Regulation
This step deals with the legal adherence of the gateway. Including a few security measures which allow the transactions to be encrypted and avoid any kind of risks. Some procedures are involved in this step to acknowledge and understand the legal
perspective. These procedures can be KYC (Know Your Customer) and AML (Anti Money Laundering).
Read: Banking Software Development
Step 7- Ready to Launch
This is the final step which allows Crypto Payment Gateway with many e-commerce platforms to deal with and offer plugins that make the transactions easy and secure. After testing rounds and feedback from the users the gateway is ready to launch.
Help from Technical Support and Developers
To create a secure, transparent experience the developers are hired to give technical support to create the gateway. Basically, it is a complex programming framework and usage of tools that help businesses build financially secure software and avoid any kind of technical risks.
The tech stack is people who have great knowledge about technical fields like software, programming, and technology. They help businesses to stand out in a field of sheep. Developers at DZ can assist you in building your own unique payment gateway in your budget.
Crypto Payment Gateway Development Cost
It takes around 3 to 6 months to develop a basic feature platform and costs approx $30,000 to $50,000. The cost and the time differ depending on the kind of functioning of the gateway platform. You can reach out to us for professional assistance. Here, at Decipher Zone Technologies we offer expert solutions and assistance to businesses to grow in their budget.
Conclusion
I hope the information provided is fruitful and can help you understand the Crypto Payment Gateway and its functions. The cost of creating the software application depends on the features and budget.
Now that you have enough knowledge about the Crypto Payment Gateway you can get for your business to take further steps to grow successfully. To create your gateway platform, feel free to reach out to our experts.
FAQs: Crypto Payment Gateway
-
What is Crypto Payment Gateway?
It is a platform where online transactions take place on the blockchain networks using the digital asset. The digital asset can be known as cryptocurrency.
-
Why do you need Crypto Payment Gateway Development?
There are many benefits to using a Cryptocurrency Payment Gateway such as the transactions can be global with minimum cost, convenient and can be expanded to a wide range of customers.
-
What’s the cost of Crypto Payment Gateway Development?
The basic cost of Crypto Payment Gateway Development is $30,000 to $50,000 depending on the demands and features, tech stack and configurations.