An increasing number of customers choose to pay with cryptocurrency when purchasing goods and services. One of the most popular options is bitcoin: more than 65% of users owned it in 2022. Experts estimate that the bitcoin payments market will grow to $3788 billion by 2031.
There are many services that allow a company to accept payments in bitcoins. In the article, we will tell you how such systems work, what are their pros and cons and which companies an entrepreneur should pay attention to.
Bitcoin Payment Systems: Working Principle
Cryptocurrency payment systems are services that allow you to add the option to pay with virtual assets on the checkout page. Buyers get the opportunity to pay for orders from their cryptocurrency wallet, and entrepreneurs — to track cryptocurrency payments, collect statistics, and withdraw the funds received.
The functionality of some systems includes automatic or manual conversion of the received cryptocurrency into fiat. Others allow you to withdraw only digital currencies.
When paying for an order, the buyer selects the desired cryptocurrency, for example, bitcoin. The system automatically calculates the necessary amount taking into account the current exchange rate and commissions — the rate is fixed for the time of making the cryptocurrency transaction.
After that, a QR code or wallet address for payment is displayed. The client makes a transaction from their cryptocurrency wallet and receives a notification that the order has been successfully placed (or that they need to pay extra if the amount is not sent in full). The received payment is displayed in the merchant's personal account.
We also recommend reading our article: «What Countries Have Legalized the Usage of Bitcoin».
Advantages and Disadvantages of Payment Systems
Connecting a bitcoin payment system to the website of a company or store has the following advantages:
- Low commissions. Payment through a cryptocurrency gateway involves fewer intermediaries than fiat transactions. Thanks to this, the commission of many services does not exceed 1-2%.
- Speed of transaction processing. Cross-border fiat transactions can take several days, while bitcoin payments are made in a few minutes.
- Attraction of new customers and increasing conversions. According to Checkout.com, more than 40% of shoppers between the ages of 18-35 plan to use cryptocurrency to pay for goods and services.
Read more about this topic in the article «TOP-10 Benefits of Accepting Bitcoin for Your Business».
The main disadvantage of receiving payments in cryptocurrency is volatility. A change in the exchange rate can lead to the fact that the cost of goods will differ significantly from the amount received for it, both upward and downward.
Another disadvantage of using a cryptocurrency payment system instead of direct transfers is the dependence on the service's reliability. To reduce the risk of losing funds, it is important to make sure that the platform has a high level of security and a good reputation.
Payment Gateways for Accepting Bitcoin Payments
The market of cryptocurrency payment gateways is growing: experts estimate that its volume will reach $5.4 billion by 2031. We have selected for you the top 5 services that are worth paying attention to.
CryptoCloud
CryptoCloud is a crypto processing that works with Bitcoin as well as other currencies and stablecoins (ETH, USDT, TUSD, etc.). The user can receive payments on the website, issue invoices and create permanent payment links. There are integrations with popular CMS available. CryptoCloud commission starts from 0.4%, connection is free.
In addition, merchants can choose the payment side of the service and the blockchain network commission: in the project settings you can set the value «Client» or «Merchant» for them.
You can find an overview of CryptoCloud service in the article.
Coinbase
Coinbase is a crypto exchange that offers entrepreneurs their own cryptocurrency acquiring. The commission for transaction processing is 1%. The wallet and private keys are managed by the system or by the account holder themselves. In addition to Bitcoin payments, Coinbase processes transactions in other popular cryptocurrencies. There is a customizable checkout, the ability to generate invoices and accounting tools.
Coingate
Coingate crypto processing supports over 70 cryptocurrencies, including bitcoins. Withdrawals are available in cryptocurrency or with automatic conversion to fiat. There are ready-made plugins for e-commerce platforms and libraries for integration.
Basic transaction fee is 1%, conversion fee is 0.1%, and withdrawal fee is 0-1% depending on the method.
Bitpay
Cryptocurrency processor Bitpay allows you to accept payments in bitcoins and other currencies. The service is available in 229 countries and provides the ability to process payments on the website, send invoices via e-mail and use cryptocurrency for transactions in retail stores. Payments can be made both in digital currencies and in fiat directly to a bank account. The commission is 1-2% + $0.25.
NOWPayments
NOWPayments processes more than 160 currencies. There is integration with popular e-commerce services, ready-made CMS plugins and connection via API, as well as software for physical stores. Withdrawals in euros are available, including via instant payouts. Commission is 0.4-0.5% depending on monthly turnover. Individual tariffs are available for turnover over 200 BTC/month.
Receiving Payments in Bitcoins with CryptoCloud
Cryptocryptocurrency payments in Bitcoins are a modern and convenient way of payment, which is used by more and more customers. You can automate such transactions with the help of a cryptocurrency acceptance service.
CryptoCloud is a platform that allows you to accept crypto payments from customers around the world. A convenient checkout interface will allow customers to quickly understand how to pay for goods or services with bitcoins, and the entrepreneur will be able to easily manage payments through a personal account. Learn more about the service's features on our website and FAQ section.
