Cryptocurrency and crypto payment is the talk of the town. These topics also remain controversial with both sides offering valuable opinions. If you have a platform where you can deal in cryptocurrency like bitcoins, you need to know more about best crypto trading script and know the benefits of developing a crypto payment gateway system so that your platform can be popularized. With user autonomy and a decentralized system, many people praise crypto currency and the revolution it is bringing in the world. But, on the other hand due to anonymity, people are concerned if this will have more disadvantages than good. Stick till the end to know what the benefits of a crypto payment gateway development are.
What is a Crypto Payment Gateway
When you try to know more about best crypto trading script, you will learn how the crypto payment gateway works. A crypto payment gateway acts as a payment processing mechanism that enables the sellers and customers to trade-in or receive or give payments respectively in the form of cryptocurrency like Bitcoin. This gateway mechanism also has to ensure that the highest form of security is maintained just like any other form of payment. Also, the users can directly move money or coins from one wallet to another through this mechanism, which makes the process all the way easier.
This payment gateway mechanism is becoming more and more popular as it is the most profitable, safe, fast, and efficient payment method. Adding to its basic function, these payment gateways are in charge of safely supplying the customer’s sensitive data or their wallet to the software at the merchant’s or the seller’s side. Crypto payment basically works through a blockchain mechanism.
This blockchain ecosystem leads to transparency in transactions and blocks any ways to alter the details of the records. Adding to that, since the blockchain method is decentralized in fashion, all the intermediate institutions like banks are eliminated from the payment procedure. This, in turn, quickens the speed of the payment gateway and lessens all the procedures that are involved in processing the transaction.
In this digital era, a crypto payment mechanism urges more and more people to go cashless and use digital modes of currencies and payments. It also promotes other decentralized payment gateways. By developing crypto payment gateways, the customers and merchants get a lot of benefits and it offers an authentic transaction mechanism as well as removing any middle man or third parties from the transaction system.
What are the Benefits of a Crypto Payment Gateway?
There are a lot of benefits to a crypto payment gateway. Some of these are:
1. No Chargebacks
This is a feature that appeals more to merchants and business owners who run big enterprises. As there is no room for a refund or a chargeback, a crypto payment, once processed and completed will not be able to return the said amount of money back to the customer. In addition, this feature increases the security of the transaction.
2. Anonymous Payments
This feature is a boon to those who are concerned about their security while partaking in digital transactions. In centralized payment mechanisms, a user needs to register on the platform and do a KYC (Know Your Customer) verification. In decentralized mechanisms like crypto transactions, a user doesn’t need to do these registrations and can simply join networks without revealing their identity. This ensures that a vendor’s and customer’s privacy is maintained.
3. Quicker Transactions
When paying with crypto, your transaction becomes really rapid. This is because there are no intermediate third parties involved in the transaction and the payment can happen in less than ten seconds. This helps the merchants to receive cryptocurrency like bitcoins fast and convert it into fiat or actual currency whenever they’d like to.
Although crypto is a relatively newer concept and is perceived as something that is not easily understandable, the mechanism of crypto payment is not that complex. People familiar with traditional payment gateways will easily get the concept of crypto too. The main mechanism underlying crypto payment is the blockchain mechanism. In blockchain technology, a credit card is basically replaced by a digital wallet. Merchants have to register themselves into a merchant account so they can accept the payment in cryptocurrency.
Consequently, all the payments and transactions are happening on a peer-to-peer basis, and a decentralized network. Nodes exchange the transaction data and send id it to the distributed ledger. The address of the wallet used in the transaction is used as a mode of identification for both the sides that are partaking in the transaction.
So how blockchain works is that when the data which is stored inside the block is added to the chain, blockchain stores all those payment details and also maintains it constant. Through this type of transaction, the crypto payment gateway urges customers to use their crypto currency in exchange for any product or any service through a decentralized method of payment. The given steps will give you a better idea as to how a crypto payment gateway operates:
- When a customer puts in an order, the application will store the customer’s information such as the wallet address of the customer. Then, the app will encrypt this data and go ahead to send the encrypted data to the merchant’s web server through SSL. The full form of SSL is Secure Sockets Layer which is a standard security technology for establishing an encrypted link between a server and a client. The server can be a web server like a website or a browser
- By operating the integrated payment gateway, the merchant can scan the blockchain. Here the nodes will see the transaction, validate it and go ahead to confirm the transaction.
- Once the nodes have confirmed the transaction, the crypto coins will be transferred from the user’s account to the merchant account. The crypto payment gateway will notify both the merchant’s and customer’s side that the successful payment has been done once verification has been completed on the other end.
- The value of cryptocurrency in terms of actual money keeps on changing. Hence, if a merchant doesn’t want to keep his crypto coins for long and wants to convert it into real currency or fiat, the crypto payment gateway will enable the merchant to do that.
- Accepting crypto currency can also be in the form of various types of currencies. A crypto payment gateway enables merchants to take a variety of crypto coins as payment and deposit all these coins into their merchant accounts. They can also store them as fiat currencies.
4. Works Well with all Operating Systems
Decentralized payment gateways like crypto payment gateways are compatible with all operating systems, be it Android, iOS or Windows. This works easy on their merchant’s side as to integrate these payment gateways, the merchants or users don’t have to add any specifications or modify their device in any way.
So, there are a lot of benefits to a crypto payment gateway due to its decentralized system and peer to peer method of transaction. Due to the blockchain mechanism that forms the basis of crypto payment, security of the user and merchant is ensured. Cryptocurrency is slowly bringing a revolution and is slowly being preferred by people due to its advantages.
About the Author
Hermit Chawla is a MD at AIS Technolabs which is a Web/App design and Development Company, helping global businesses to grow by Global Clients. He love to share his thoughts on Web & App Development, Clone App Development and Game Development.