A Merchant’s Guide to Crypto Payment Gateways

Date Published: 10 May 2021
Last Updated: 15 Sep 2022

What is a Cryptocurrency Payment Gateway?

There is no denying that digital currencies are dominating the Internet since the beginning of the new decade. So much so that the most popular cryptocurrency, Bitcoin, was valued at a staggering $65,000 in 2021.

A Merchant’s Guide to Crypto Payment Gateways

What’s more, this upwards trend in cryptocurrencies’ popularity is only set to increase in the years to come, as the world turns to the internet for new and innovative ways to make and verify financial transactions. In the U.K. alone, 30% of payment providers’ customers intend to use crypto as a form of payment in 2022.

Although this shift can be an excellent opportunity, it can also pose a challenge for some businesses. The new technologies accompanying digital currency transactions can be somewhat difficult to fully understand with no prior knowledge.

So that is why, in this article, we’ll be giving you a detailed insight into the financial tools behind cryptocurrency payments, known as crypto payment gateways.

You’ll gain an understanding of how these new API and alternative payment gateways operate so that you can decide if they are features that your business may want to adopt too.

What are crypto payment gateways?

In short, crypto payment gateways enable online businesses to accept cryptocurrencies as a form of payment, in contrast to traditional ‘Fiat’ currencies such as USD, Euro, etc.

For a crypto payment gateway to operate, merchants will also need a payment processor, which will execute a transaction once a crypto payment has been accepted by a crypto payment gateway.

Thankfully, crypto payment providers usually provide both crypto payment gateways and processors within their service packages.

What is a Crypto to Fiat Payment Gateway?

To understand what a crypto to fiat payment gateway is, we first need to distinguish the difference between fiat and crypto currencies.

Put simply, most of today’s currencies can be considered fiat. They are any currency that is backed by a government and issued by them.

They derive their value largely through the public’s trust in the government and the financial institutions that are in place to regulate them, such as the Bank of England in England.

In contrast, cryptocurrencies are decentralised, meaning there are no governmental institutions in place to regulate them. Instead, cryptos depend on thousands of computers worldwide to keep their networks, known as ‘blockchains’, operating.

So, a crypto to fiat payment gateway is simply a financial transaction service that accepts cryptocurrencies and converts them into fiat currencies.

What is a Crypto to Crypto Payment Gateway?

Building on the above, a crypto to crypto payment gateway is thus just another transaction tool used to either transfer crypto payments across one another, or purchase different cryptocurrencies.

How Does a Cryptocurrency Payment Gateway Work?

Now that we’ve covered what crypto payment gateways are, let’s go over how they work:

Step 1: The customer chooses crypto as a payment method at checkout

Once your customer chooses a product or service they want to purchase on your website, they’ll have the option to pay with crypto or digital currencies using a cryptocurrency payment gateway.

Step 2: The customer enters a transaction window

The customer will then be locked into a transaction window that will simultaneously freeze the market exchange rate of the crypto they’re wanting to spend to your default fiat currency of choice, e.g. British Sterling.

Step 3: The cryptocurrency payment gateway converts the payment

Your gateway and payment provider will then convert your customers’ crypto immediately into your pre-selected fiat currency.

Step 4: Money is deposited

The final step – the fiat money is then automatically deposited into the merchant’s account, ready for withdrawal.

The Benefits of a Crypto Payment Gateway for Merchants

Knowing how crypto gateways work is the first step, but why should businesses actually consider using one? Below we’ve listed some of the main benefits of crypto payment gateways:

  1. Rapidly growing popularity

    Perhaps one of the largest benefits of having a crypto payment gateway is that cryptocurrencies are only set to rise in popularity in the next few years.

    For instance, 6.1% of people in the United Kingdom own crypto, according to a survey conducted in February 2022, which was a 103% surge since the beginning of 2018.

    In the U.S, around 13% of Americans traded cryptocurrency in 2021, according to a recent survey by the University of Chicago.

    Some countries, such as El Salvador, have even gone as far as to openly welcome Bitcoin as a legal form of payment and globally, there are over 300 million crypto owners worldwide.

    Consequently, if businesses want a competitive advantage and to be ahead of the game, utilising a crypto payment gateway is a great place to start.

  2. Reach different types of audience

    Having a crypto payment gateway portrays to potential customers that your company is more inclusive and advanced than most mainstream brands. This in turn appeals to a broader customer demographic who may want to buy from you.

    Moreover, it will simply provide your customers with another way to pay, which will inevitably increase your sales in the long run. As a business owner, we’re sure you’re aware that one of the largest priorities should be to simplify your payment procedure as much as possible.

  3. International convenience

    As cryptos are decentralised, they’re automatically universal in nature, meaning there is no requirement to convert money from different fiat currencies and pay the exchange rate, plus any broker fees to facilitate the transaction (e.g. through Paypal).

    Why is this especially important? Removing an extra barrier to payment for your customers will ultimately lead to increased sales over time. They’ll know that there won’t be, sometimes, high exchange rate fees so will be more willing to purchase from you.

  4. No chargebacks

    The networks that cryptocurrencies operate on, known as blockchains, disable any capability to chargeback, as each crypto transaction is verified along the blockchain algorithmically.

    Therefore, you won’t have to deal with potentially losing money and paying the associated fees to deal with your customers charging back on their purchases. Overall, this will alleviate stress and anxiety for your business, giving you one less thing to worry about.

How to Choose the Best Cryptocurrency Payment Gateway for Your Business

It’s important for you as a business to note that not all cryptocurrency gateways are the same, and so you must consider the best one for your needs.

Here are some factors to consider before choosing the right cryptocurrency payment gateway for you:

  1. Cost

    Perhaps the most important factor – is how much will it cost you to have a crypto payment gateway and corresponding merchant account?

    For instance, for many providers such as Coinbase, their Commerce platform charges a 1% transaction fee.

  2. Accepted coins

    Alongside the fee, as a business, you will need to decide which crypto coins you’ll accept and if the provider you’re planning to use offers them as payment options.

    Larger crypto payment gateway providers allow most of the majority of popular cryptos, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), Bitcoin Cash (BCH) and USD Coin (USDC).

  3. Security

    Although most major crypto gateways providers offer safe and secure merchant accounts, it’s still best to check how your crypto and subsequently converted fiat currencies will be stored.

    For instance, will they be stored in a digital currency wallet or a physical one? What security measures does the provider have in place to ensure your money will be safe from potential threats and hackers?

  4. Mobile support

    Having your crypto gateway payment system mobile compatible is arguably unequivocally essential.

    In the United Kingdom, it was recorded that almost every individual between 16 and 34 owns a smartphone in 2021.

    Additionally, retail sales from e-commerce and mobile sites are expected to surpass the 100 billion GBP mark by 2024.

    In short, make sure that your provider has mobile compatibility as part of their default packages, otherwise, you’ll be potentially missing out on a huge opportunity.

  5. Support and customer service

    Will your merchant account provider support all your queries and questions about using a crypto payment gateway? What is their customer support like? Do they have a 24/7 line or email that you can contact?

    Those are just a few questions you may want to consider in relation to your provider’s customer support. It may not feel important, but when you have urgent problems and questions that require immediate answers and support, you’ll be thankful that you researched this beforehand.

How Does Monneo’s Cryptocurrency Payment gateway Work?

At Monneo we are proud to offer a cost-effective cryptocurrency payment solution. Originally founded in 2016, we are known as a European virtual international bank account number (IBAN) and corporate account provider.

We enable online merchants and business to business (B2B) companies to set up multiple IBANs in their company’s name across leading European and International banks.

In terms of cryptocurrencies, we help simplify the process of crypto transactions by enabling online merchants to accept crypto payments natively through their own websites. We have developed an end-to-end payments ecosystem that addresses several longstanding issues that online merchants have had to deal with for many years.

What coins does Monneo crypto payment gateway accept?

As of April 2022 our crypto to fiat gateway supports BTC and LTC.

We also offer solutions for other types of coins, since last year when we announced a landmark project with Coinbase. Coinbaise had reported 89 million verified users in the last quarter of 2021, making it one of the most popular crypto exchanges on the planet.

As a result of the partnership, merchants using Monneo’s platform are able to settle B2B invoices in a range of leading cryptocurrencies, including BTC, ETH, LTC and more. This is in addition to the 130+ fiat currencies that are already offered as payment options on Monneo.

However, it’s not just consumers that are supporting the rise of cryptocurrencies. A recent survey showed that “55% of businesses now view crypto as the future of payments and 57% of them claim they believe accepting crypto payments will give them a competitive edge”.

Our managing director, Lili Metodieva, stated that “there should be, and is no difference between cryptocurrency payments and FX payments via fiat currencies as they both have the same mechanisms”.

Using virtual IBANs, merchants can be assured that whenever there is a movement of money, it will be highly secure and regulated.

API and website integration:

Monneo has both a website and API integration that allows you to automatically add crypto as a payment option to your existing website easily.

Our customer support will also help guide you through the entire integration process and assist you with any queries you may have.

What makes Monneo unique?

Unlike other crypto payment gateway providers, Monneo ensures merchants do not take any volatility risk.

How do we do this? A customer has 15 minutes to complete a transaction where the crypto to fiat rate is locked in. Once processed, the merchant receives the full fiat amount, regardless of any rapid exchange rate fluctuations, immediately.

We use the ‘Lightening Network’, which is a second layer of technology that helps facilitate crypto to be exchanged instantly.

Above all else, our main priority is to provide certainty for our clients. We want to show you that accepting cryptocurrencies as payments is now a viable option in 2022, and that crypto payment gateway integration into your website is simple and straightforward with our efficient and friendly assistance.

Additionally, we want to make the process as smooth as possible; comparable to a regular fiat currency transaction. You’ll have your funds cleared promptly in your dedicated and highly secure merchant account. We want to provide you with an edge over your competition to further help expand your future profit potential.

So, why limit yourself?

If you want to learn more about how your business can get ahead by implementing a reliable and supportive crypto payment gateway, you can contact and inquire on the Monneo website here.

Monneo. A complete payment ecosystem

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