Top Five Bitcoin Payment Gateways Online in 2018.
We have narrowed it down to 5. most popular bitcoin gateways that you can find on the web.
Little did you know that May 22 is known as a holiday called “Bitcoin Pizza Day”? It refers to the day in 2010 when Florida resident, Laszlo Hanyecz got online with an offer to pay 10,000 Bitcoins to anyone who was willing to have two large pizzas delivered to him. A Brit took him up on the offer, and for the $25 pizza cost, received his 10,000 Bitcoins.
If he still owns them today, they are worth about $40 million, considering that Bitcoin is now trading around $4600 per token.
First known example of a Bitcoin transaction took place on May 22. when Florida resident, Laszlo Hanyecz got online with an offer to pay 10,000 Bitcoins to anyone who was willing to have two large pizzas delivered to him. A Brit took him up on the offer, and for the $25 pizza cost, received his 10,000 Bitcoins.
And that day is known as „Bitcoin Pizza Day“. But before we dive in…
What Is a Cryptocurrency?
„Bitcoin is one of the most important inventions in all of human history. For the first time ever, anyone can send or receive any amount of money with anyone else, anywhere on the planet, conveniently and without restriction. It's the dawn of a better, more free world.“ – Roger Ver.
Cryptocurrency is an increasingly trending term referring to digital money that can be purchased, transferred, and/or sold securely using cryptography, which encrypts and protects the data used to help identify and track cryptocurrency transactions.
Today, Bitcoin is the most famous cryptocurrency – a digital currency that is used for transactions that are encrypted and made secure through a technology known as “blockchain.”
Bitcoin is a decentralized, peer-to-peer, "cryptocurrency" system designed to allow online users to process transactions through digital units of exchange called Bitcoins. Started in 2009 by a mysterious programmer, Bitcoin has generated plenty of interest and controversy as a "third" type of currency and an alternative to government flat currencies like the U.S. dollar or the euro or pure commodity currencies like gold or silver coins.
Bitcoin payments are processed through a private network of computers linked through a shared program. Each transaction is simultaneously recorded in a "blockchain" on each computer that updates and informs all accounts.
It is not a currency created or regulated by any government – it cannot, therefore, be manipulated or interfered with by any central authority. Instead, transactions are verified by so-called “miners,” placed in a “block,” and permanently stored in a ledger that cannot be altered.
In fact, it is a smart business that will explore its options for establishing Bitcoin as a transaction currency for its online purchases. Many already accept Bitcoin payments, and the growing popularity is the result of many factors.
What are benefits of this?
Bitcoin for B2B payments, especially for international payments, is becoming more and more commonplace. The advantages, however, are also there for B2C e-commerce businesses. Here are just a few of the benefits to accepting Bitcoin payments:
- Lower transaction fees. - It’s no secret that small businesses are getting creamed by processing fees, so accepting cryptocurrency can help mititgate the sting. By general rule, cryptocurrency has lower per transaction fees than accepting credit cards and debit cards.
With credit and debit, you’re looking at at least 3 percent transaction fees plus multiple hidden feees. Meanwhile, with cryptocurrency like Bitcoin, it is said that merchants can reduce their fees to less than one percent. - Fraud protection. Part of the appeal of accepting cryptocurrency in your business is fraud protection. With cryptocurrency, clients and customers don’t need to give you personal financial information.
This is in the same way PayPal acts as the third party between consumer and merchant. The only difference is the third party would be sending and receiving cryptocurrency like Bitcoin.
In a time when criminals are getting better at hacking small businesses to get customer financials, this added layer of security can give everyone peace of mind. - You get the money faster. When accepting credit and debit card payments, business owners may not see that money for a while. Because of all the parties involved, and because they all have different rules, it could be anywhere from a couple of days to an entire week before they see the money hit their bank account. This can be incredibly frustrating when you need cash flow, have bills to pay and need to make payroll.
The good news is this usually isn’t the case with cryptocurrency. This means business owners can have faster access to cash so they can keep their business running. - Cryptocurrency eases foreign payments. Many businesses are weary of going global because currency exchange and foreign transaction fees are an accounting nightmare. They can also be very expensive. While some intermediaries like PayPal have tried to alleviate this, you’re still looking at a 3.9% fee to accept foreign payments.
Again, cryptocurrency comes to the rescue. Because cryptocurrency like Bitcoin is global, it removes this headache from the equation. This makes it easier for merchants to expand beyond their own borders without having to worry about the costly consequences. There’s no comparison between $0 and a 3.9% fee.
The decision to adopt a Bitcoin payment gateway for an e-commerce website is no longer a question of “if,” but, rather, a question of “when.” However, this decision will rest with which cryptocurrency payment processor to choose to best meet your company’s needs. And there are several options.
Top 5 Bitcoin Payment Gateways
Finding a bitcoin payment gateway for an ecommerce website is no longer a problem. Here are five of the most popular and current payment gateway options.
Alfacoins
Alfacoins is a cryptocurrency payment processor. A cryptocurrency is a digital or virtual currency employing cryptographic security.It offers the same bitcoin payment integration that other processors do. There are a few unique features such as incoming payments can be split between cryptocurrency and fiat, and it supports Bitcoin, Litecoin, and Ethereum. The transaction fee is 0.99%, typical of most processors.
Bitpay
BitPay is a leading Bitcoin payment processor based out of the US since the early days of Bitcoin in 2011.You can use BitPay's retail, ecommerce, billing, and donation tools to accept payments from customers anywhere on earth. Receive settlement for bitcoin payments directly to your bank account in your own currency, with zero price volatility or risk. BitPay allows you to accept payments in bitcoin and receive funds directly to your bank account. Bank deposits in 38 countries
Shopify
Shopify is one of the most popular payment gateways , and 1000+ of merchants are now accepting bitcoins. They even have 14-day free trial. Of course, that’s only valid if you are a Shopify merchant.
Coinbase
Coinbase is one of the world’s biggest Bitcoin exchanges, and arguably most popular. But apart from trading Bitcoin on Coinbase, you can also use it for accepting Bitcoin payments for your business.It can seamlessly integrates with Shopify to make accepting cryptocurrency easier than ever.Simply connect your Coinbase Commerce account to start accepting cryptocurrency payments.Values are updated every 60 seconds. It will also accept altcoin payments and transfer them to bitcoin payments if a merchant wants to do that.
Coingate
The list would not be complete if I didn’t include Coingate into it . CoinGate allows you to accept Bitcoin payments in your retail business using an Android app or an iOS app on a smartphone or a tablet, or using any kind of internet enabled device with an internet browser. There are plugins, modules and extensions for various e-commerce shopping cart platforms that allow you to integrate Bitcoin payments seamlessly into your existing online store.
And here’s a comparison table of top 5. Bitcoin payment processors in 2018. to help you choose the optimal one for your product.
Comparison table of top 5. Bitcoin payment processors in 2018.
| Payment Processor | Key Features | Transaction Fees | Technology Integrations | Cons |
|---|---|---|---|---|
| AlfaCoins | - great payment processor with extensive API documentation. - No charges for installing the payment module and no subscription fees. - Also offers a payout system to handle mass payments - Allows splitting incoming payments into two parts – cryptocurrencies (Bitcoin, Litecoin, Ethereum) and fiat. - Bitcoin payments can be withdrawn to the bank account in Euro or USD from all countries except North Korea and Iran. |
0.99% | - Can be used for applications built on Java/Ruby and other popular programming languages. - Uses REST and JSON-RPC calls. - WooCommerce plugin available. |
none |
| BitPay | - Set custom transaction speed depending on your preferences. - Two-factor authentication for accounts. - Invoicing supported in 40+ languages with calculated pricing displayed on an invoice in 150 currencies. - Bank payouts in Euro, USD, GBP, and five other currencies. - Supports payment protocol (BIP 70 and BIP 73), which adds an additional level of security. - Hassle-free bitcoin refunds. - Ledger payment tracking available |
No transaction fees for 30 days. Capped at $1,000 daily and $10,000 annually. 1% for transactions going above the cap. |
Open source plugins available for the majority of popular e-commerce solutions. Compatible with the next POS systems: Ingenico, NCR Silver, DC POS and others. Compatible with accounting software – NetSuite, Paydici, InvoiceNinja and others. Code libraries available for Ruby, Python, C#, Java, Perl, PHP, Go and Elixir. Mobile code libraries for Android SDK, iOS SDK, and Cordova SDK. |
Direct bank deposits in fiat are supported only for 38 countries – Australia, New Zealand, The USA, The UK, Mexico, South Africa, and EU countries. Additional transaction fees may apply for businesses in the high-risk industries. |
| Shopify | - Easy-to-setup with extensive documentation available. - PCI compliant solution. - Supports bitcoin payments through POS applications. - Shopify platforms come with a lot of extra tools to set up and run an e-commerce store. |
Vary depending on the bitcoin payment processor you choose. | Has APIs to create integrations with Coinbase, Dwolla, BitPay, and GoCoin | You need to have a Shopify merchant account and have Shopify Payments activated to avoid additional transaction fees. |
| CoinBase | - Highly customizable checkout experience. - Mobile-friendly design. - You can select among embedded widgets, plugins or built a custom integration with their API. - Two-click payments for Coinbase wallet holders. - Instant exchange available for payouts. - Supports invoicing via email. - Supports microtransactions in bitcoins. |
No transaction fees if you keep the funds in BTC. 1% transaction fee for converting BTC to your local account currency, yet only after $1,000,000 in sales. |
Code libraries are available for Ruby, Python, PHP, Node.js, Java. Mobile code libraries are available for Android and iOS SDK. Shopping cart plugins are available for WordPress, WooCommerce, Magento, ZenCart, foxycart!, Spreecommerce. |
None. |
| CoinGate | - Supports POS sales through an iOS/Android app. - Multiple integrations and plugins available. - Apart from Bitcoin supports payments in 40+ alt coins. - Allows creating bitcoin payment/donation buttons for any websites. - Account verification takes around 1 hour. - Receive payouts in EU/US to your bank account. - Round the clock tech support for users. |
1 % | Plugins and extensions available for WooCommerce, Magento, OpenCart, ZenCart, PrestaShop and other popular ecommerce solutions. API documentation available for Ruby and PHP. |
No documentation for Java, .net, and Python based applications. |
Conclusion
As you can see, there are already a wide selection of payment gateways out there, and the new ones are popping up all the time!
But, that's only on the Internet, and my opinion is that we are just at the beginning of the digital era. There are still a lots of locations in R0L ( Real Life ) all around the world where bitcoins along with alt-coins are not supported. I was just thinking that to myself the other day, that when I'd be able to pay for – for example- something from bakery with my digital wallet. That will be the day, when future has come.
Posted by Michael Johnson
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