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Crypto Payment Gateways: Similarities and Differences

Crypto Payment Gateways: Similarities and Differences

Crypto popularity and demand is growing with every passing day. Consequently, the market enjoys an increasing number of services that allow users to earn, convert, exchange, store, and spend cryptocurrencies. Businesses that focus on one type of service quickly lose their user base due to the inconvenience customers feel when having to constantly switch platforms. Nowadays, all-in-one universal platforms are trending where users can exchange and buy cryptocurrencies and purchase goods using digital assets.

The growing popularity of cryptocurrencies has led to the increased demand for crypto processing services that help businesses handle payments in crypto. Crypto processing solutions can be implemented not only in online shops but also in offline “brick-and-mortar” stores. The first crypto processing service was launched in 2011 by a company called BitPay, which still retains a position among industry leaders.

In 2021, the crypto processing market now includes over two dozen players, the most advanced of which we will discuss here. Each service has its distinctive features: geographical coverage, fee structure, and solutions pack. Clients can easily find solutions that best suit their business needs. Here we review Cryptoprocessing by CoinsPaid, B2Binpay, CoinGate, BitPay, CoinPayments, CryptoPay, and DAOWallet. They differ by the number of cryptocurrencies and means of payments accepted. Some allow withdrawals and exchange, while others issue prepaid cards. These are some of the distinctive features we uncover in this review.

Which factors are critical in choosing a crypto processing service that suits your business needs?

In which industries does the service operate

Each crypto processing provider works in a certain niche. For example, the main arena for CoinPayments consists of online stores, hotels, and gift cards. Depending on the clients’ needs, the service provides more than 30 e-commerce plugins. Cryptoprocessing by CoinsPaid is a leader in processing payments for iGaming and offers unique solutions for the gaming and gambling industry, where payment security is the cornerstone of business. Apart from that, Cryptoprocessing.com targets e-commerce and forex, considering these sectors as promising areas for development. In general, B2B solutions by CoinsPaid helps businesses to cut expenses on payments up to 90%, which made the company one of the industry leaders last year.

B2BinPay works with forex, exchanges, and ETF-funds. CoinGate and CryptoPay focus on e-commerce. In particular, CoinGate deals in the luxury sector, the entertainment industry, and software development. Also, the service works in such sectors as gambling, gaming, and adult entertainment. CoinPayments provide services in the areas of web hosting, telecom, entertainment, trading software as well as online courses and various internet shops. DAOWallet works in iGaming, VPN, eSports, e-commerce, and SaaS-solutions and provides the service to medical and non-profit projects. It is one of few crypto processing services that is ready to work with high-risk projects.

Which cryptocurrencies a service accepts

The majority of crypto processing services execute transactions with at least three of the most popular cryptocurrencies: bitcoin, bitcoin cash, and ethereum. The oldest crypto processing service, BitPay, only accepts these three coins. Cryptopay works with four cryptocurrencies: BTC, LTC, XRP, ETH. BitBay works with the same coins plus with 6 more: BCC, BTG, LSK, ZEC, TRX and DASH. Cryptoprocessing.comaccept more than 30 coins. CoinGate handles more than 50. B2BinPay accepts 10 major coins, 7 stablecoins and a full range of ERC20 tokens. The number of supported cryptocurrencies directly depends on the transaction volume in these cryptocurrencies. The most popular in this context are BTC, USDT, ETH, Bitcoin Cash, and LTC.

Clearly, it is not possible to cover all existing cryptocurrencies. Moreover, there is no need for this either. Each cryptocurrency payment gateway’s maintenance requires significant resources. That is why most services are commonly limited to the most popular coins. At the same time, Cryptoprocessing by CoinsPaid or B2BinPay offer the service for processing payments in ERC-20 tokens. This creates value for the crypto community as today DeFi and based on it tokens are one of the main trends.

How much a service charges

Before choosing one of the processing services, take time to examine its fee structure. It is important to distinguish two types of fees: blockchain network fee and service fee itself. The first one is a variable and depends on the network load. The more transactions go through the network, the higher the fee. Service providers have no influence on the network fee, and a user will pay this commission in any case.

Most commonly, crypto processing services charge a fee depending on the type of transaction. In particular, B2BinPay charges 0.5% for incoming transactions and nothing for outgoing. International transfers via the SWIFT system will cost an additional 1.5%. CoinGate, BitPay, and CryptoPay charge a unified commission of 1% on all transactions. The DAOWallet has a flexible fee structure, where fees start with 0.5% and are finally settled at the moment of integration.

Cryptoprocessing.com follows the dynamic commission policy, which is based on the monthly transaction volume. The higher is the volume of a client transaction, the cheaper is the fee. The starting withdrawal and exchange fee is 0.5% for high volume transactions and 1% for regular The standard fee for deposits is 0.8%. That is quite a favorable fee, given the possibility of reduction due to growth in the monthly transaction volume.

How secure is a service

Where or in what wallet you decide to store cryptocurrencies is of critical importance. Some services use hot wallets as a more convenient option with instant access. With that, money is, in fact, stored online. In this case, the funds are highly vulnerable in the face of hacker attacks. This exact approach led to cryptocurrency exchanges being hacked and clients’

funds being stolen. In 2017, hackers exploited this vulnerability in the CoinPayments wallet and stole a substantial sum in XRP that caused a high-profile scandal.

Before choosing which crypto processing service you’ll use, it is crucial to understand the storage type the service uses. Cold wallets are not connected to the internet and are secure, but working with them takes more time. Most commonly, services combine two types of storage like for example, B2BinPay, CoinGate, Cryptoprocessing by CoinsPaid, BitPay, CryptoPay, and DAOWallet. In particular, Cryptoprocessing.com holds clients’ funds in cold wallets, while keeping operational capital in hot storage to guarantee transactions without delays.

Apart from the storage types, service security is also influenced by the source code on which it works. It’s worth asking whether the company commissioned a security audit of the platform, who executed it and what were the results. For example, Cryptoprocessing by CoinsPaid successfully passed two audits from the notorious company Kaspersky Labs and the white hackers team at 10Guards.

Summary

When you start exploring crypto processing services, web pages often lack crucial information. Therefore, it is important to determine key factors that influence your decision and inquire about missing information from selected providers directly. Crypto processing is full of nuances and almost every decision is talked over separately. Since you are looking for sustainable and favourable cooperation, the extra questions are well worth it. In time, we will likely see crypto payments become a priority in your business.

 

Disclaimer: This is a sponsored press release, and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.

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