Accepting payment in cryptocurrency is becoming more and more trending: crypto transactions are taking their place among payment methods. One of the popular currencies for payment for goods and services is the «digital dollar» Tether (USDT).
In the article we will tell you what Tether is, how to connect the cryptocurrency payments acceptance on the company's website and what payment gateways can be considered to work with this stablecoin.
What is Tether
USDT (Tether) is a token whose value is pegged to the American dollar at a 1:1 ratio. It was launched on Bitfinex in 2014. At the moment, it is one of the most popular stablecoins on the cryptocurrency market.
Its market capitalization is over $95 billion, which puts it in third place among all cryptocurrencies after giants like Bitcoin and Ethereum.
The price of USDT is backed by the reserves of Tether Limited. The reserves are audited every quarter. You can read the reports on the official website of the company. According to the audit dated September 30, 2023, the stablecoin is backed by 100%.
Reserves consist of cash, US Treasury bills, secured loans, precious metals, and cryptocurrency (bitcoin) and other investments. You can learn more about USDT collateral in our article: «Tether (USDT) Backing: Is It as Reliable as Claimed».
USDT is used by many companies for payment: from online stores, marketplaces and online services to airlines, car dealers and medical clinics.
Cryptocurrency Payment Gateway: How It Works
A cryptocurrency payment gateway is an e-commerce service that allows you to connect the function of paying for orders with cryptocurrency to a website.
Using such a platform is an opportunity for customers to pay for a purchase from a cryptocurrency wallet without delays. Entrepreneurs get access to statistics, convenient withdrawal of funds, currency conversion in the personal account.
To pay with USDT cryptocurrency, the client selects the crypto payment option when placing an order. The system converts the amount into the desired currency and calculates the commission. Confirmation of the purchase happens automatically after the payment is processed by the blockchain system.
The available functionality depends on the chosen crypto acquiring. For example, some systems allow customers to use a bank card to purchase cryptocurrency at the time of ordering, and merchants can withdraw the funds received in fiat.
Using Crypto Acquiring: Advantages and Disadvantages
Accepting crypto payments through a payment gateway has a number of advantages:
- No restrictions. Acceptance of USDT payments allows you to work with clients around the world even under sanctions.
- Cost reduction. The commission of most USDT payment systems does not exceed 1-2% and does not depend on the geography of the parties to the transaction.
- Increase of conversion. The option to pay via USDT is an additional payment method that is convenient for many clients.
- Protection against chargebacks and fraud. USDT transactions are irreversible — this is one of the principles of blockchain technology.
- Connection convenience. The absence of multi-step verification allows you to start accepting crypto payments in a short period of time.
One of the concerns that users face is the volatility of digital currency. Using Tether allows you to avoid related losses: USDT is a cryptocurrency that is tied to the dollar exchange rate and is characterized by high stability.
The disadvantage of crypto acquiring is the risk of losing funds due to the unreliability of the service. To avoid losses, it is important to choose a system with a high level of protection and a good reputation.
Popular Payment Gateways for Accepting USDT
There are many payment systems for Tether (USDT): it is the most popular stablecoin, with which many platforms work. We recommend paying attention to the following.
CryptoCloud
CryptoCloud payment gateway works with popular cryptocurrencies, which includes Tether. The service allows users to accept payments both through the company's website and when working through social networks and messengers thanks to the billing function. Integration with major e-commerce platforms is performed through ready-made modules and APIs.
The service commission is from 0.4%, withdrawal of funds is made within a few minutes. Connection is free of charge, only e-mail is required for registration.
Read more about the service features in our article: «CryptoCloud crypto payment gateway: a full review».
Bitpay
Bitpay is one of the first platforms to offer users the function of accepting cryptocurrency payments. The service is available in 240+ countries and works with 100+ wallets. There is a possibility of invoicing links, as well as functionality for using cryptocurrencies offline.
The commission for using the service is calculated depending on the company's turnover: from 1% (+$0.25). There is a function of automatic withdrawal of funds to a bank account in fiat currency.
Learn more about the platform in our article «BitPay: Processor, Wallet, Card and Other Services Overviewed».
Triple-A
Triple-A processes payments in Tether, Bitcoin, Ethereum, USDC. The standard commission is 1%. There is integration via API and ready-made plugins for Woocommerce, Wix and Opencart, as well as an e-mail billing option.
The system offers protection against cryptocurrency volatility, as well as automatic withdrawal of received funds in fiat currency on the next day after the payment is received.
Coinspaid
Coinspaid is a system that works with 20+ digital currencies and 40+ fiat currencies. Commission for crypto payments is less than 1%. Setup is free of charge. There is an option for instant conversion of cryptocurrency to fiat.
The company offers a high level of security, has an EU license, is AML and MLRO compliant, and undergoes regular audits. It requires KYB (Know Your Business) compliance for installation.
Connecting a Payment Gateway for USDT Transactions
Crypto payments are becoming an increasingly popular way to pay for goods and services, and one of the most popular digital currencies has been Tether. It is a stablecoin pegged to the dollar at a 1:1 ratio, which reduces the risks associated with volatility.
There are many payment systems that allow you to accept payments in Tether. One of them is CryptoCloud. This service works with major cryptocurrencies, offers fast integration and quick withdrawal of funds to your wallet, has a convenient interface and prompt tech support. More information about the system — on our website.
