Bitcoin, the most widely used cryptocurrency, has been nicknamed “the safe money of the Internet” by many users. Making or receiving payments to anyone without revealing any vital information relating to their bitcoin accounts or wallets is possible with bitcoin merchant services.
With bitcoin merchant services, you can pay for a good at the local shop by scanning the shop’s QR code with your phone, or buy a high-end product from a huge and well-known company like Dell by making bitcoin payments.
In this article, we explain how bitcoin payment services function, the benefits and the various bitcoin merchant services providers.
What Is bitcoin merchant services?
Bitcoin merchant services, allow merchants and enterprises to accept bitcoin payments from individuals in exchange for the goods and services they sell or supply.
It works in a similar way to how a regular credit or debit card payment service works, with a few exceptions for bitcoins.
For instance, when you go to a Walmart shop to make a purchase, you swipe your Amex or Visa credit card at the counter and input your PIN number to complete the transaction. Similarly, you can make an online purchase from Walmart and pay with the same credit card by entering the information on the website’s payment page.
A bitcoin merchant service system operates behind the scenes in both circumstances (the in-store swipe machine and the online web portal) to authenticate and process your credit card for payment. That is a similar way, bitcoin merchant services operate. They function as a middleman between the payer and the receiver, processing bitcoin payments and registering them on the public blockchain ledger.
The bitcoin merchant service is responsible for securely capturing and communicating payment details, authenticating credentials, allowing money to be transferred from your account to Walmart’s, and issuing a confirmation to all stakeholders involved.
Why merchants accept cryptocurrencies like Bitcoin?
There are numerous advantages to adopting Bitcoin as a payment method. The following are a few of the advantages.
- Customers have complete control over their transactions, and it is safe.
- Customers who prefer cryptocurrency now have a new payment option.
- A secure payment mechanism that protects the confidentiality of your transactions.
- The blockchain ledger securely stores payments.
- When compared to debit and credit cards, transaction fees are much lower.
- It’s great for international travel because you can use the same currency in other currencies.
- There will be no intervention from a third party.
- When compared to traditional credit cards, there are no payment delays.
- Secured by an authentic digital signature.
- Enable Real-time cross-border payment.
Benefit of using bitcoin merchant services
The benefits of bitcoin merchant services are:
- Bitcoin users have complete control over their funds
- Bitcoin transactions are pseudonymous
- Transactions are conducted on a peer-to-peer basis
- Bitcoin merchant services do not incur banking fees
- Its payments services are mobile
- Bitcoin merchant services are secure
>. Bitcoin users have complete control over their funds.
Traditional fiat currencies are vulnerable to a number of constraints and dangers. Banks, for example, are prone to economic booms and busts. As has happened in the past, these scenarios can sometimes result in bank runs and crashes. This implies that users do not have complete control over their funds. Bitcoin guarantees user autonomy, at least in theory, because its price is unrelated to specific government actions. This means that bitcoin users and owners have complete control over their funds.
>. Bitcoin transactions are pseudonymous
To identify the individual executing the transaction, most internet transactions necessitate a slew of data. Transferring money from one person to another, for example, can only be done once both parties’ identifying information has been validated.
Similarly, making an online transaction necessitates entering identifying information. Although the verification procedure helps to avoid crime, it also puts a middleman in command of the transaction, allowing them to regulate the distribution of services to specific parties.
Transactions in Bitcoin are anonymous. While this does not make the transactions fully anonymous, they can only be traced back to a blockchain address.
For a single account, an individual can have many addresses, just as they can have various usernames and passwords. The transaction does not necessitate the use of IP addresses or other identifying information.
>. Transactions are conducted on a peer-to-peer basis
Bitcoin is a peer-to-peer payment system, which means that users can send and receive payments from anyone on the network anywhere in the world. The participants to a transaction do not need authorisation from an external source or authority unless they are sending or receiving bitcoin via a licensed exchange or institution.
>. Bitcoin merchant services do not incur banking fees
While typical banking fees such as “maker” and “taker” fees, as well as occasional deposit and withdrawal fees, are standard among fiat currency exchanges, Bitcoin users are not subject to the litany of traditional banking expenses associated with fiat currencies. This includes, among other things, no account maintenance or minimum balance fees, no overdraft costs, and no returned deposit penalties.
>. Its payments services are mobile
Bitcoin users, like many other online payment systems, can pay for their coins from anywhere they have Internet access. This eliminates the need for customers to visit a bank or a store to purchase goods. Personal information is not required to make any purchase, unlike online payments done using US bank accounts or credit cards.
>. Bitcoin merchant services are secure
Bitcoin isn’t a real-world currency. As a result, robbers will be unable to palm it off the bearer. Hackers can steal a person’s cryptocurrency if they have access to the wallet’s private keys. However, stealing bitcoin is technically impossible with sufficient protection. While there have been instances of cryptocurrency exchange hacks, Bitcoin’s exchange has remained unaffected. As a result, transactions carried out between two (or more) addresses are safe.
>.Its transactions are final and cannot be reversed
Blockchain transactions are irreversible and cannot be changed by a third party, such as a government or financial services organization. It is also impossible to file a chargeback for bitcoin given to a third party. In a sense, the only method to reverse Bitcoin transactions is for the recipient to send back the original bitcoin.
Bitcoin is theoretically available to populations of users who do not have access to traditional banking systems, credit cards, or other forms of payment because users can send and receive bitcoins using only a smartphone or computer.
How does bitcoin merchant services work?
Bitcoin merchant service providers provide merchants with a variety of ways to accept bitcoin payments. Integration with e-commerce platforms like Shopify, PrestaShop, and Magento; payment through in-store point-of-sale (POS) systems like Soft Touch and DC POS; and direct payments from within popular billing and accounting solutions like Host Bill and Invoice Ninja are among the alternatives available.
Such systems, which include integration with donor services such as NationBuilder and Targeted Victory, can also be used to collect bitcoin donations and also buy stocks with bitcoin.
Anyone who signs up for bitcoin merchant services can begin accepting bitcoin payments from consumers via any and all types of transaction mediums from anywhere in the world.
Using the bitcoin payment integrated with the Android software development kit, a developer in Canada can develop a great Android app and receive bitcoin payments from global users; or a prominent restaurant in the USA can accept bitcoin payments from its patrons using the bitcoin payment-enabled Soft Touch POS.
Bitcoin merchant services payment workflow
The following workflow is carried out when making a payment with a bitcoin merchant service:
- At the checkout, your customer chooses to pay in bitcoins (in-store, on the web, or in-app).
- They pay the agreed-upon sum using the locked-in exchange rate in effect at the time of the transaction.
- The bitcoin payment service transforms received bitcoins into the currency of your choice quickly, removing the danger of volatility.
- The money is added to your account, and whenever it reaches the threshold limit, it is credited to your selected bank account at the predetermined frequency.
The bitcoin merchant service instantaneously swaps received bitcoins into the merchant’s preferred currency, removing the risk of volatility. Instead of exchanging bitcoins for fiat currencies, one might keep them in their own wallet. Read:10 Ways to Secure your Crypto Wallet Against Theft
In order for the transaction to be authenticated and recorded on the public ledger, the service also communicates the relevant details to the blockchain network in a secure manner.
A bitcoin miner fee is paid to those who verify and add transactions to the blockchain. This charge is not paid to the payment service, but rather to the miners to thank them for their efforts in verification and authentication.
Best bitcoin merchant services gateway
Let’s take an in-depth look at some of the best bitcoin merchant service payment gateways available on the market.
- BTCPay Server
CoinPayments is a global payment gateway that allows customers to quickly exchange Bitcoin, Ethereum, Litecoin, and over 2,000 other cryptocurrencies on its platform. Since 2013, CoinPayments has established itself as an industry leader, assisting merchants in taking cryptocurrency payments with fast, safe, and easy-to-integrate solutions. Shopping cart plugins for major eCommerce platforms, custom APIs, digital wallets, and a slew of additional business tools are among them. CoinPayments has processed over $10 billion in cryptocurrency payments to date and continues to service over 70,000 merchants around the world.
- Real-time global payments
- Industry-low processing fees of only 0.5%
- Over 2,100 supported coins
- Easy plugins with Ecommerce platforms like Shopify, Magento, and more
- Auto conversions to avoid volatility
- Fiat conversion options
Blockonomics is a decentralized cryptocurrency payment gateway that supports transactions without the need for third-party authentication, authorization, or further API connection. Customers must scan the QR code on the page or use digital wallets to make payments.
- Cryptocurrency payments such as Bitcoins, Litecoins, and Bitcoin Cash are processed in a secure environment.
- Merchants can use it to buy their items anonymously all over the world. (No registration required)
- Supports popular wallets including as Mycelium, Blockchain.info, Trezor, and the Ledger Nano S, among others.
CoinsBank is a blockchain payment gateway that does everything. With a single click of your finger, it may be linked with your debit card. The mobile app is compatible with both Android and iOS devices.
- Instant deposit and withdrawal options are available.
- To protect your wallet, use a two-factor authentication solution.
- Supports all major fiat currencies, including the US dollar, the euro, the British pound, and the Russian ruble.
- Funds can be easily exchanged at current market prices.
- Free currency transfers to friends and family 24 hours a day, 7 days a week.
- A customer service system that is available 24 hours a day, 7 days a week.
- Your synchronized debit card can be used anywhere in the world.
- Customers can trade on a global exchange platform with minimal risk and maximum reward.
For business transactions, OpenNode is one of the most prominent Bitcoin payment processors. OpenNode is free to use and set up, and you can start using it in minutes after joining up. For every business that wishes to accept Bitcoin payments, OpenNode delivers a straightforward and easy-to-use interface.
- Bitcoin and Traditional Currencies (USD, EUR, GBP, & more)
- On-chain and Lightning Network
- Instant payments and automatic conversions
- E-commerce plugins (Shopify, WooCommerce, Magento & more)
- Payments for any business; Invoices, In-person, and online
- Simple yet powerful API for custom solutions
- Bitcoin Payment buttons and donation buttons
- 24/7/365 Global Customer Support
- Compatible with all Bitcoin wallets
- 2 Factor Authentication compatible
B2BinPay is an all-in-one worldwide cryptocurrency payment solution for merchants and enterprise clients that enables them to safely and securely send, receive, store, exchange, and accept cryptocurrency payments online. Also allows parties to conduct international transactions at a fraction of the cost of standard online payment gateways. Users may join in less than an hour using a single API, thanks to a high level of automation and transaction speeds of under 20 seconds.
- No recurring fees or hidden charges, Ultra-low processing fees
- Downloadable reports, real-time balance and transaction history
- Secure checkout, Automatic withdrawals
- Secure API and sandbox environment availability
- Over 800 coins and tokens supported
- 24/7 technical support in 6 languages
BitPay, situated in the United States, was one of the first Bitcoin payment gateways to open in 2011. Start taking payments and online transactions with the BitPay app. Bitpay now offers Bitcoin Debit Cards, which make it simple to convert cryptocurrency into fiat currency.
- BitPay has open-source plugins suitable for eCommerce platforms.
- Allows Bitcoin donations.
- Globally accepted and allows bank deposits in 38 countries.
- API platform offers a simple interactive interface.
- A two-factor authentication system allows full security.
- Multi-user facility.
- Multilingual and supports more than 40 languages worldwide.
- There are options for transaction speed according to your needs.
- Compatible with all bitcoin cash wallets.
- Transaction notification through email and mobile text messages.
Blockchain is an ancient bitcoin payment gateway that may be used for both business and personal purposes. It currently enables transactions in Bitcoin, Bitcoin Cash, and Ether on a global scale.
Blockchain wallet is a well-known cryptocurrency wallet, but it is also a repository that allows users to explore Blockchain information, innovations, and statistics reports on Blockchain and Bitcoin.
The implementation process is not as simple as they don’t have any easy to use a plugin for merchants. To integrate it and use it without any problems, you’ll need a few programming skills.
- The crypto wallet supports Bitcoin, Bitcoin Cash, and
- Download the mobile app into your Android and start bitcoin transactions.
- A completely free and secure wallet.
- API allows you to receive and send bitcoins to other wallets.
The TripleA bitcoin payment gateway is simple to set up. It takes only a few minutes and is quite adaptable. There is no need for bitcoin or technical knowledge. It’s the easiest payment method to utilize. You can either utilize their WooCommerce plugin or their API for custom integration on your WordPress website.
Bitcoin to bitcoin transactions are completely free and do not require the use of an intermediary. TripleA also permits local currency withdrawals to prevent market fluctuation for a flat cost of around 0.8 percent, which is one of the lowest available.
- All typical bitcoin wallets are supported.
- Withdrawal in local currency with a 0.8 percent flat fee
- There are only three steps to getting started.
- Each transaction generates an email notification.
- There are no fees for subscriptions, maintenance, or setup.
#9. BTCPay Server
BTCPay Server is a self-hosted, open-source cryptocurrency payment gateway that allows merchants to accept payments in Bitcoin and supported altcoins straight into their crypto wallets without incurring any transaction costs, fees, or a middleman.
- Payments are made faster via the Lightning Network.
- Payments can be made in Bitcoin and other cryptocurrencies.
- Provides a higher level of privacy and security.
- Crowdfunding built-in
- Merchants can use the BTCPay button to make a payment.
SpicePay is another cryptocurrency payment gateway that allows you to accept and exchange cryptocurrencies while also securely storing your funds in your wallet.
- A secure and convenient exchange platform.
- Exchange your digital coins to USD, EUR, GBP or CAD.
- Withdraw funds through wire transfer like PayPal or SEPA.
- Integrate payment gateway to your website.
- Donate through online digital tools.
- Online retail and e-commerce plugins allow you to connect your business globally.
- No fraud or chargebacks.
- Save up to 2% on every transaction.
- BitGo feature allows you to use the app in mobiles and desktop systems.
#11. Shopify Gateway
Shopify is an e-commerce payment gateway that is currently one of the most trustworthy in the cryptocurrency sector.
- Very low transaction fees.
- Secured transactions allow you to accept payments from anywhere and anytime.
- POS applications allow you to use the wallet in tablets, PCs, and mobiles.
- Fast and hassle-free transfer of payments worldwide within minutes.
Confirmo, formerly BitcoinPay, is one of the most straightforward ways to receive payments into your bank account or mobile wallet.
- There are no monthly costs and the service is completely free.
- Customer service is available 24 hours a day, 7 days a week.
- Make daily deposits into your bank accounts.
- You can use an API to accept bitcoin payments on your website.
- Request payment from your account by email and accept immediate payment.
- Ecommerce plugins from over 196 countries across the world.
How to Pay with bitcoin merchat services
- Choose Your Bitcoin Wallet
- Buy Bitcoin
- Start Paying with Bitcoin
Choose Your Bitcoin Wallet
You must first choose a wallet to hold your Bitcoin before you can use it to make purchases. This will be your Bitcoin bank account, which you may use to store, send, and receive funds. There are a plethora of free cryptocurrency wallets available on the internet, and they all operate on both desktop and mobile platforms. Simply create an account with your personal information and you’re good to go.
After you’ve set up your wallet, it’s time to acquire some bitcoins. This can be done through one of the various bitcoin exchange services available. Do your homework and find out what the greatest bitcoin price is right now.
Bitcoins can be purchased with a credit card or a bank account. Simply enter your bitcoin wallet address to the exchange operator, and the transaction will be completed in minutes.
Start Paying with Bitcoin
If an online merchant accepts Bitcoin payments, all you have to do is copy their Bitcoin address and enter it into a section on your wallet. Click send after entering the correct quantity of bitcoins in the payment box. Just make sure to key in the exact amount that appears in the payment box. The transaction should take only a few seconds to complete.
Bitcoin merchant services are becoming increasingly popular. Many countries, such as Japan, have begun to accept it as a legal form of payment, while others, such as India, are still figuring out how to regulate digital assets. Users can start accepting bitcoin payments using any platform from the above list of best merchant payment gateways, depending on their needs. Customers will be able to make payments using digital payments with ease.