Digital payments have skyrocketed, now overtaking the use of cash for transactions. It has coincided with the bullish run in the Cryptocurrency market with increased buying by institutional investors. Hence, Cryptocurrency payment gateway development has become essential for the safe processing of transactions.
It is used widely by Cryptocurrency exchanges, asset managers, trading platforms, portfolio managers, brokers, payment solution providers, hedge funds, and fund managers.
What does a Cryptocurrency Payment Gateway denote?
- It allows the easy execution of transactions in all the leading digital currencies.
- A Crypto payment gateway allows the real-time conversion of crypto to fiat currencies.
- Users have full control over their funds.
The various advantages of using Cryptocurrencies in Payment Gateways
- Enhanced user privacy and security.
- Can be used 24x7x365 anytime and anywhere.
- The transaction fees in a Cryptocurrency payment gateway are less when compared to debit cards and credit cards.
- There is no interruption of third parties or middlemen in the platform.
- It can be used for cross-border transfer of funds and peer-to-peer payments.
- An additional layer of security is provided by a digital signature. It builds trust and reduces the possibility of duplication of payments.
The key aspects to incorporate during Crypto Payment Gateway Creation
- A QR code scanning facility for making quick payments by scanning the wallet addresses of users.
- Multilingual technical support must be provided around the clock to better user experience access to transaction history to the users to updated keep with the information about their payment activity and account balance.
- The platform must be integrated with numerous digital wallets to safely store users’ cryptos.
- Should be added to a Point of Sale (POS) machine so that users can utilize it for making payments for buying different goods and services.
- Plugins with the leading e-commerce platforms.
- Deposit and withdrawal facilities must be available 24×7.
- Cross-platform compatibility by working efficiently on Android, iOS, and Windows systems.
- Auto-rejection of duplicate payments should be implemented to prevent the risk of chargeback fraud.
- Seamless API integration with third parties.
- Security measures like PIN lock, multi-factor authentication, biometric authentication, fingerprint authentication, anti-DDoS protection, and end-to-end data encryption.
- Real-time issue of notifications carrying important alerts through SMS and email.
- Integration with NFC/AR functionalities.
- A dedicated dispute management facility.
- Support for recurrent payments.
- An offline vault storage facility for the users.
- Real-time tracking of risky transactions and ransomware payments.
The step by step process for Crypto Payment Gateway Development
- Analyzing the business requirements thoroughly.
- Deciding the implementation strategies that will suit the business goals.
- Creating the payment gateway by adding the necessary features and functionalities on the platform.
- Rigorously testing the solution to remove any technical bugs.
- Integration of the crypto payment gateway in business operations.
- Launching the payment gateway in the market.
- Adding necessary software upgrades based on the operational feedback.
Decentralized Finance and Cryptocurrency Payment Gateway development
- Lightning Network is a decentralized platform used for processing Bitcoin transactions quickly. The benefits include adequate scalability, low operational costs, and cross-chain atomic swapping facilities.
- Celer Network uses layer-2 technology for facilitating the fast execution of off-chain transactions. It is used by gaming platforms for processing micropayments.
- Matic uses the Proof of Stake consensus mechanism for instant settlement of transactions. It offers greater throughput, asset interoperability, API, and SDK integration, and support for different DApps.
- Sablier which was acquired by Mainframe was built on the Ethereum blockchain network by following the ERC1620 token standard. The users can make payments in the leading cryptocurrencies and stable coins.
- StablePay enables payments in ERC20 tokens by the users to be converted into stablecoins like DAI. The main advantages are greater returns on the funds, no price volatility, 5–7% interest offered on the deposit of fiat currencies, real-time remittances, and strong capacity to execute bulk transactions to several wallet addresses quickly.
As seen above, a Crypto payment gateway will lead to the transformation of the business operations by ensuring efficient fund management leading to high growth. It enhances the user experience and provides a lot of flexibility.
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Why developing a Cryptocurrency Payment Gateway is necessary now? was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.