Before getting into the crux of the matter and hitting the turf, we first need to understand the basics of cryptocurrency payment gateways, and how they are steadily evolving and bracing themselves for future challenges in the virtual currency domain. FYI, a payment gateway is a kind of technology that acts as a bridge between traders/merchants and the crypto market, by allowing merchants to accept and make payments in digital currencies like Bitcoin (BTC), Ethereum (ETC), Litecoin (LTC), etc. In layman's terms, the gateway processes the payments.
As per a recent study conducted by an independent business researcher and think-tank, the worldwide cryptocurrency payment market is expected to grow at an average rate of 14.2%, and the total market value is expected to rise to a whopping $USD 4900 million by 2033. These staggering numbers, figures and statistics say it all.
Key Players in the Crypto Payment Gateway Market
- BitPay
- Coinbase
- Binance
- UniPayment
- Coinsetter
- Bitcoin Foundation
- Blockonomics
- Gox
- BitcoinX
- Nvidia, and more.
Current Market Demand for Cryptocurrency Payment Gateways
The latest market research indicates the worldwide crypto payment gateways market is expected to reach $USD 5.4 billion by 2031 from just $USD 1 billion in 2021, which is an average growth rate of 18.7% in the corresponding period. As per geographic region, North America is going to top the list, followed by the European Region and Asia-Pacific. The Central and Latin America region sits at the bottom, in terms of usage and demand.
The COVID-19 pandemic acted as a catalyst in the adoption of Artificial Intelligence (AI) into the crypto trading market, thus fueling the cryptocurrency payment gateway market to many folds. With more and more investors joining the bandwagon of cryptocurrency investment and trading, the global market demand is slated to increase by two-three folds.
Another credible report indicates that the global crypto payment gateway market was valued at USD 18 billion in 2021, and is expected to touch USD 92 billion in 2027-28, which is an average CAGR of 22.45% in the said forecasted period.
Drivers Fuelling the Demand for Crypto Payment Gateways Globally
- The increasing acceptance of digital currencies as a popular medium of transaction, is invariably leading to the demand for cryptocurrency payment processors.
- The steady increase in global eCommerce trade and Shopify sales are driving the need for diverse payment options, thus the popularity of crypto payment gateways.
- Crypto payment processors offer lower transaction fees, when compared to conventional payment gateways, thereby attracting individual traders, investors and businesses.
- It facilitates seamless cross-border transactions, perfectly suiting the needs of global eCommerce businesses and Shopify stores that accept digital currencies.
- It also offers improved security and privacy features, thus easily attracting merchants who are wary about data protection.
Advantages of Cryptocurrency Payment Gateways
Worldwide Reach — Almost all crypto payment gateways allow businesses to accept payment from clients/customers globally, without facing any obstacles or hurdles by traditional banks or currency exchange rates.
Instant Transactions — One of the best features of crypto payments is that it can be processed within minutes, unlike traditional bank and wire transfers, which can literally take days for clearance. This is the reason why there’s a huge market demand for popular crypto payment processors for making and accepting digital payments globally.
Reduced Cost — All crypto transactions have lower fees compared to traditional payment methods, as they bypass conventional intermediaries like banks, brokerage firms and other financial institutions. It is definitely a better alternative to fiat currencies, allowing greater flexibility and improved immunity to market fluctuations.
Improved Security & Privacy — As all digital currencies use Blockchain technology and advanced cryptographic techniques, it is next to impossible to hack into another’s account or data, thus negating the chance of malpractices and monetary fraud. The online transactions are highly secure, impregnable and free from chargebacks. It also allows merchants to maintain complete anonymity during crypto transactions.
Decentralization — All cryptocurrency payment gateways use blockchain technology, which eventually eliminates the need for a central regulatory authority for ensuring transparency and overseeing digital transactions with crypto.
Integration Choice — Almost all popular crypto payment processors and gateways offers plugins, software and APIs, ensuring smooth integration with existing WooCommerce &eCommerce platforms, thus helping online businesses to adopt crypto payments in the form of BTC, ETH, LTC, USDT, Cardano, Solana, etc.
How to Choose the Right Payment Gateway?
When choosing cryptocurrency payment gateways, you need to look into the specific pros & cons, assess your individual needs based on your business model, and thereafter meticulously shortlist one particular gateway or payment process that lives up to your expectations. It must ensure the best-in-class user-experience, on the basis of certain key factors and indices. One such popular option or choice can be UniPayment, whose revolutionary external wallet feature gives merchants a significant advantage – allowing them to receive payments directly into their own wallets. This innovative mechanism cleverly addresses the security concerns that centralized payment gateways might pose. Its security is comparable to receiving cash directly from customers, without relying on any third party. It is this direct and reliable method of transaction that has enabled UniPayment to rapidly build a solid foundation of trust among traders, merchants, investors, and commercial institutions worldwide, earning widespread acclaim and becoming one of the preferred platforms for executing crypto transactions.
Speed of Transaction: The actual ‘real-time’ speed with which a payment gateway processes a digital transaction is the measurement of KPI and a segregating factor between an efficient or ‘lethargic’ transaction. Swift transactions enable improved CSAT scores and user-experience quotient.
Supported Systems & Currencies: A payment gateway which supports multiple cryptocurrencies, is definitely more dynamic and versatile. Here, one needs to think beyond the popular digital currencies like BTC & ETH, and look forward to the new cryptocurrencies that are fast gaining recognition in the worldwide crypto trading market like Dogecoin, Tether USDT stablecoin, Cardano, etc.
Fee & Rates: The aspect of transparency in fee structure & costs is non-negotiable, be it transaction fees or maintenance charges, if you know how and what you’re going to be charged, that affects your margins and bottom line.
Android Compatibility: In the present era of Android devices, smartphones, tablets and iPads, having a 100% mobile responsive cryptocurrency payment gateway is absolutely mandatory. As an investor or trader, you need to ensure that the crypto payment processor performs seamlessly on different mobile operating systems (OS), devices and platforms.
Scalability & Navigability: As crypto trading is growing every passing day, you need to choose a payment gateway that is designed highly scalable in nature, ready to absorb newer technologies and greater volume, with any kind of performance glitch. Similarly, the gateway should be extremely navigable for users with disabilities, with straightforward dashboards, yet in a detailed manner.
Robust Security: It should have the best-in-class security features, ensuring a high degree of privacy and anonymity, with zero infringement, manipulation, sabotage or chargeback risks.
Integration & Multilingual Support: A dedicated payment process must be able to effortlessly integrate with all the latest Apps, software & plugins, apart from providing a multilingual support, ensuring a global reach and footprint.
End Note
As markets are slowly evolving, one can definitely expect to see greater volumes in cryptocurrency trading in Bitcoin, Ethereum, and other trending currencies, which eventually lead to the proliferation of better and more digital currency payment gateways. This will help merchants perform seamless, secure, quick and uninterrupted transactions, with the quintessential aspects of affordability and trust.
