What is a Crypto Payment Gateway?

A crypto payment gateway is a service or tool that lets businesses accept payments in cryptocurrencies like Bitcoin, Ethereum, and more. It acts as a connector between the customer and the business, making the crypto payment process smooth by converting the cryptocurrency into the business’s preferred currency. For example, from Bitcoin to EUR. The company that offers this solution is sometimes also called a cryptocurrency payment processor. 

As of June 2024, the BTC map displays over 11,107 businesses that accept Bitcoin. According to BitDegree.org, there are 15,000 businesses worldwide that accept Bitcoin or other cryptocurrencies. Keep in mind that the real number might be much higher since the map doesn’t cover each and every merchant in the world. 

Also, the focus of the BTCmap is Bitcoin only, while many buyers prefer to spend other cryptocurrencies like stablecoins. Interestingly, there are older reports indicating that in the past there have been over 100,000 merchants, as you can see in this report from Cointelegraph Research. Based on our own data and experience, one thing is sure: demand for crypto payment gateways is growing rapidly. 

Besides merchants with a physical presence there are many businesses which operate without a physical store and accept cryptocurrencies. For example, marketing agencies, real estate companies or digital e-commerce marketplaces. 

If you operate a physical store, you could consider looking into physical POS system (Point of Sales) hardware (imagine a credit card terminal), which allows you to collect crypto payments from customers. If you simply want to invoice clients and allow them to pay you in cryptocurrencies our solution at Januar is perfectly fine. Feel free to contact us for a demo account here. 

What kind of payment gateways are available?

Let’s break cryptocurrency payment gateways down into three parts: Custodial, Non-Custodial, and Hybrid. 

• Custodial: The company that sold you the cryptocurrency payment gateway holds and manages the funds for you.
• Non-custodial: Your business holds and manages the funds yourself.
• Hybrid: Offers both options, combining features of both custodial and non-custodial gateways, giving businesses more flexibility.

As always, there are advantages and disadvantages to all solutions. Custodial payment gateways have the clear advantage of simplifying things for your business by managing the crypto for you. And additionally, it offers quite a few extra services and features. Non-Custodial payment gateways come with the advantage that you have more control over your funds.

With around 420 million people already owning some form of cryptocurrencies globally, accepting digital currencies can help businesses reach more customers.

Integration, usability, and security
Some cryptocurrency payment gateways are very easy to integrate with websites and online stores, making them very user-friendly. Others might require more technical knowledge to set up. Different gateways have different security measures like encryption and two-factor authentication.

Conversion options
Some gateways automatically convert cryptocurrency payments to regular money (EUR, USD) to avoid price changes. Others let businesses hold onto the cryptocurrency, which might increase or decrease in value over time.

Costs and fees
Custodial services usually have slightly higher fees because they manage the crypto for you. Non-custodial services often have lower fees but require more technical involvement from you since you are responsible for setting it up correctly.

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How does the setup of a cryptocurrency payment gateway work?

• Start and setup: Businesses integrate the crypto payment gateway into their checkout system using plugins, APIs, or other tools.
• First sale: Customers choose their preferred cryptocurrency at checkout, view the exchange rate, and send the payment to the provided wallet address.
• Payment processing: The gateway processes the payment, verifies the details, and confirms the transaction on the blockchain.
• Confirmation: Both the customer and the merchant are notified of the successful payment.
• Settlement: The gateway can automatically convert the cryptocurrency to fiat and deposit it into the merchant’s account, minus any fees.
• Keep, invest or spend: Depending on whether you choose to keep the crypto as crypto or convert it to EUR or USD, you can now use the money as you like.

Depending on your needs, there are other vital services you might want. Look out for those features you really need. We summarised a list of features that cryptocurrency payment processing solutions offer.

How to choose the best cryptocurrency payment gateway for your business

When selecting a cryptocurrency payment gateway, consider the following key criteria:

• Fees: Understand the transaction fees and any additional costs like exchange rate markups.
• Processing and settlement times: Look for gateways that offer fast processing and settlements.
• Ease of deployment: Choose gateways with low-code deployment options if you need a quick setup.
• Payer experience: Opt for gateways with proven, user-friendly payment pages.
• Customer support: Ensure the provider offers robust support and resources.

Compliance: Verify that the provider has strong compliance and regulatory measures in place.

What features to look for in a payment gateway?

Fiat payments
Fiat payment services allow businesses to receive payments in traditional currencies such as USD, EUR, etc. This can be essential for businesses that want to offer both cryptocurrency and traditional payment options to their customers.

Payments
This service allows businesses to accept cryptocurrency payments from customers. It includes the infrastructure and tools needed to process transactions, ensuring that payments are secure, verified, and efficiently managed.‍

Custom checkout design
This feature enables businesses to customise their checkout pages to align with their brand and provide a seamless user experience. It allows for the integration of various payment options, including cryptocurrencies, and can be tailored to fit the specific needs of the business.

Invoicing
Invoicing services provide tools for businesses to generate and send invoices to customers for payment in cryptocurrencies. This can include automatic reminders and easy tracking of paid and unpaid invoices.

Exchange/OTC
Exchange services allow businesses to convert between different cryptocurrencies and fiat currencies. Over-the-Counter (OTC) trading provides a more private and often more efficient way to trade large amounts of cryptocurrency without affecting the market price.

Wallets
Cryptocurrency wallets are secure digital tools that allow businesses to store, receive, and send cryptocurrencies. Wallet services can include multi-currency support, enhanced security features, and easy management of funds.

Stablecoin Settlements
Stablecoin settlements use cryptocurrencies that are pegged to a stable asset, such as the US dollar, to minimise volatility. This allows businesses to settle transactions in a stable currency, reducing the risk associated with price fluctuations in the cryptocurrency market.

Currency Conversion
This service allows businesses to convert received cryptocurrencies into fiat currencies or other cryptocurrencies. It ensures that businesses can manage their funds in the currency that best suits their needs and reduces exposure to cryptocurrency volatility.

Multi-currency wallets
Multi-currency wallets enable businesses to hold and manage various cryptocurrencies within a single wallet. This simplifies the process of handling multiple types of digital assets and provides greater flexibility in managing funds.

Billing
Billing services automate the process of generating bills for customers. It can include recurring billing for subscription services, detailed tracking, and integration with other payment processing tools to streamline the entire billing process.

Payroll
Cryptocurrency payroll services enable businesses to pay employees in cryptocurrencies. This can include automatic conversion from fiat to crypto, compliance with tax regulations, and easy management of payroll records.

Trading
Trading services provide businesses with platforms to buy, sell, and trade cryptocurrencies. These services can include real-time market data, advanced trading tools, and secure environments to conduct trades.

Bulk payouts
Bulk payout services allow businesses to send payments to multiple recipients at once. This is useful for paying suppliers, contractors, or employees and can be done efficiently with minimal transaction fees.

POS terminals
Point of Sale (POS) terminals are hardware devices that allow businesses to accept cryptocurrency payments in physical retail environments. These terminals integrate with existing POS systems to provide a seamless checkout experience for customers using cryptocurrencies.

When choosing a payment gateway, businesses should consider features carefully. The importance of these features depends on the specific needs of your business. Januar.com can work in great combination with various solutions. Contact us to learn more. 

Choose the right crypto payment gateway with Januar

Choosing the right crypto payment gateway can significantly enhance your business's flexibility and reach in the digital economy. Whether you opt for custodial, non-custodial, or hybrid solutions, prioritising security, ease of integration, and cost-effectiveness will ensure a smooth transition into accepting cryptocurrencies, catering to a growing base of tech-savvy customers globally.

One possible solution is, of course, ours at Januar.com, you can easily convert between cryptocurrencies and traditional currencies. In simple words, you get a trusted EU IBAN account, just as you do with your traditional bank. Additionally, you’ll also get the possibility to allow your customers, partners or other businesses to pay/receive crypto, which you can’t do with your traditional bank. Interested? Get started today. 

FAQs About crypto payment gateways

What is a crypto payment gateway? A crypto payment gateway is a service that allows businesses to accept payments in cryptocurrency, providing a secure and efficient way to handle digital transactions.

What is the difference between a crypto payment gateway and a crypto payment processor?
In essence, while a crypto payment gateway facilitates the acceptance of cryptocurrency payments, a crypto payment processor takes care of the entire payment process. Most of the solutions offer the gateway and some form of processing (conversions, reporting, …) anyways. 

Which is the best crypto payment gateway? The best gateway depends on your specific needs. Evaluate options based on security, fees, and compatibility with your existing systems. Feel free to contact us if you are interested. 

How do I integrate a crypto payment gateway into my business? Most gateways offer easy-to-use APIs and plugins for popular e-commerce platforms. Some might require more technical expertise to set up.

What are the fees associated with crypto payment gateways? It depends a lot. Custodial services usually have slightly higher fees, while non-custodial usually are a bit more difficult to set up. 

How do crypto payment processors integrate with businesses? Crypto payment processors often include a payment gateway as part of their service offering and integrate with various business systems to provide a broader range of financial solutions​.

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Disclaimer
The information provided in this article is intended solely for general informational purposes and should not be interpreted as professional advice from Januar. Please be aware that Januar is not a financial advisor. We strongly recommend that individuals seek independent guidance from qualified legal, financial, or accounting professionals before making any cryptocurrency investment decisions.