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Crypto payment gateways are a form of payment processing technology that allows merchants and businesses to accept crypto payments from their customers. In other words, they create a bridge between crypto consumers, traditionally higher spenders than those using a credit or debit card, and merchants who have not yet onboarded crypto payments directly. In this sense, crypto payment gateways help merchants bypass the need to handle the ups and downs of cryptocurrency volatility, management, wallets, withdrawals, and exchanges as they continue to receive payments for their goods and services in their local FIAT currency, be that dollars, pounds, yen, or any other.
Crypto payment gateways are a hugely valuable innovation in the online payments space and help boost the utility of cryptocurrencies and the strength of the crypto payments ecosystem. In this article, we take a closer look at crypto payment solutions and how they work and offer a detailed insight into our own solution, ForumPay, the only global crypto payment gateway for fast, cost-effective and borderless payments.
Understanding how crypto payment gateways work
For consumers, using a crypto payment gateway to purchase goods and services is not dissimilar to the experience of paying with a credit or debit card. The payment details differ in that funds come from their crypto wallet instead of their bank account, but the process itself is just as simple and often faster than traditional methods. To get technical, when a consumer decides to buy something using cryptocurrency instead of traditional payment methods, the merchant’s system generates a payment request. This request includes the amount in cryptocurrency, a unique identifier for the transaction, and a QR code or wallet address to which the payment should be sent.
The consumer then scans the QR code from their crypto wallet or manually enters their wallet address to transfer the designated amount. The transfer, or payment, is then processed by the blockchain network (Bitcoin, Ethereum, Litecoin, etc.), verifying the transaction and payment. Once the transaction has been entered into the blockchain, the merchant is notified of the successful payment, after which their system can update the status of the purchase, in turn notifying the customer that their payment has been processed correctly.
The benefits of using a crypto payment gateway
Crypto payment gateways offer multiple benefits to both merchants and crypto consumers, seamlessly bridging safe and compliant crypto payments into the FIAT economy. First of all, the enhanced security features provided by blockchain technology make crypto transactions a safer alternative to traditional payment methods. All transactions are encrypted and recorded on the decentralized, public ledger, which reduces the risk of fraud and eliminates the risk of chargebacks altogether. Gateways also allow consumers to maintain their anonymity as they only require a wallet address to process a transaction of any size. By contrast, conventional payment systems often demand extensive personal and financial information, and bank payments can even be blocked if the bank deems it necessary.
On top of the added layers of security and privacy, crypto payment gateways incur lower transaction fees and facilitate international transactions without entering into the hassle of currency conversions and the associated fees. By eliminating intermediaries, businesses and individuals can reduce overhead and streamline the payment process. Crypto payment gateways also offer protection against crypto volatility by enabling instant crypto-to-FIAT conversions, a hugely beneficial feature for predicting and stabilizing revenue streams.
The added benefits of choosing ForumPay
By choosing ForumPay’s crypto payment gateway, merchants and businesses gain access to a free, comprehensive solution that goes beyond standard crypto payment processing. One of ForumPay’s standout features is its ability to be integrated seamlessly into any existing workflow, whether that’s an online store or physical point of sale. ForumPay can even provide a dedicated device with our payment solution pre-loaded and ready to run, ensuring a smooth introductory process to accepting crypto payments. What’s more, ForumPay owns its own cryptocurrency exchange and is therefore able to provide real-time pricing and the best available rates.
ForumPay also eliminates the chargeback risks associated with traditional payment systems, as well as the often inflated commission rates for credit and debit card payments. Merchants only pay a single, all-inclusive transaction fee (covering blockchain transaction fees) and are also able to process refunds and payouts in both FIAT and popular stablecoins. A hugely beneficial feature to bear in mind is that ForumPay is a wallet-agnostic solution. This means that merchants and businesses are able to accept crypto payments from almost any consumer —over 575 million wallets globally—no matter where they store their digital funds, enabling further flexibility and enhancing the user experience.
ForumPay: A fully compliant solution
ForumPay is also a fully compliant payment solution that meets the highest industry standards. Through our partnerships with Sum & Substance, we ensure comprehensive KYC/AML processes and compliance for merchants. These measures allow us to determine the origin and duration of digital assets in any given wallet, and safeguard against money laundering and fraudulent activities. ForumPay also collaborates with Chainalysis, which enables instant verification of each consumer’s wallet, confirmation of availability of funds, and the possibility to flag potential security risks.
If you are a business or merchant and have yet to start accepting payments in cryptocurrency, book a meeting with our team of crypto payment experts to find out how. Alternatively, visit forumpay.com for more information.
