Bitcoin | Manage and spend your Bitcoin with the BitPay App, and turn Bitcoin into dollars with BitPay's Prepaid Mastercard ®. Jul 14, · Virtual currency is a digital currency stored in an open and decentralized electronic payment system. Since Naka moto (), virtual currency has been attracting attention from industry, academia, and the general public, of which Bitcoin is the most famous. Jul 02, · Bitcoin has had a few changes in designation over the years, and as it stands, making it a payment system is harder than it once was. The major cryptocurrency has undergone a .
Bitcoin currency or payment systemAre Bitcoin Payment Services Similar to Credit Cards?
Cryptocurrencies remain a healthy market where there is lots of money to be made by traders. Space to build their cryptocurrency products:. What is a bitcoin payment gateway? Why businesses should accept bitcoin Best cryptocurrency payment gateways of A bitcoin payment gateway allows merchants to accept transactions in bitcoin.
As you are no doubt aware, the cryptocurrency market is incredibly volatile. Since then there have been several rapid rises and declines in a matter of hours. Payment processors facilitate the immediate transfer of bitcoin and other altcoins into fiat currency.
They allow merchants to automate these payments and provide a host of other tools and reports to help make the whole process as convenient as possible. There are a number of benefits to allowing customers to pay with bitcoin. Here are the main reasons merchants should consider adding bitcoin to their payment method portfolio:. Coinbase is the largest bitcoin exchange in the United States and is also one of the biggest cryptocurrency global exchanges as well. With such a large number of users, Coinbase has the resources to develop some amazing features to help make life easier for its users.
The company is based in the United States and therefore is required to adhere to all U. S laws on currency exchanges. For this reason it is one of the most trustworthy exchanges, something which is very important given that the cryptocurrency market remains largely unregulated.
Coinbase can be used as a payment gateway as well as a normal exchange. It facilitates instant currency conversion from Bitcoin into fiat currency without the need for the merchant to have to request a withdrawal. The only drawback to Coinbase is that it only operates in a limited number of countries worldwide. For more information, you can click this link to visit their site.
Coingate has a really user-friendly app that allows merchants to set up and monitor payments from their phones. It also has the added bonus that it supports some 40 other cryptocurrencies, meaning that merchants can massively boost the number of different payment methods that they offer just by using this crypto payment gateway.
CoinsBank is a user friendly bitcoin payment processor that has a good reputation within the industry. It is available for mobile via its free to download apps for Android and iOS.
The app includes a one click instant deposit and withdrawal feature which is handy for large volume traders. All transactions are made at the live market rates which gives users better control over their money. Finally, the platform offers the latest security including a two-factor authentication system that helps secure your wallet. There is a hour customer support system should users need to resolve any problems. Undeniably one of the best payment processors for bitcoin, AlfaCoins has the unique feature of offering payments to be split between fiat and cryptocurrency.
For those merchants who wish to retain some amount of bitcoin from each transaction to cash in on surging prices, this is a great option as it allows them to hedge their bets without risking the entire amount. While AlfaCoins has a slightly lower transaction fee of 0. That said, however, AlfaCoins charges no further fees to install the bitcoin payment system and is subscription free too. A further bonus is that AlfaCoins can be used in any country with the exception of Iran and North Korea.
It allows funds to be withdrawn in USD or Euro. Shopify is one of the world most trusted and best cryptocurrency payment gateways. It is really easy to set up and has plenty of customer service support should you need any help. The only drawback with Shopfy is that merchants are required to sign up for a Shopfy merchant account in order to use the payment processing facility.
Transaction fees vary depending on which payment processor a merchant chooses. A really cool feature that BitPay offers is the ability to set withdrawal transaction speeds to whatever time frame is required. This feature is really handy for merchants who need or prefer withdrawals to occur at set intervals. Another nice feature is the two-factor authentication that helps make accounts even more secure.
BitPay is an easy and simple payment gateway to set up and operate. The whole process has been streamlined to make it as straightforward as possible for less tech-minded merchants. This makes it an excellent choice for small businesses and startups. The only drawback is that BitPay currently only supports direct bank deposits in 38 countries.
GoCoin is much loved by developers around the globe. This is because it offers a very simple and straightforward API for them to use. BitPay is one of the early and popular offerings available in the U. Coinbase, a cryptocurrency exchange, also offers a merchant app for businesses for bitcoin payment services.
CoinGate, SpectroCoin, and CoinsBank are other leading players offering similar services in a variety of flavors to suit the needs of merchants and payers willing to deal with bitcoins. A settlement is available in a variety of fiat currencies by the different operators. It supports direct bank deposits in 38 different countries and bitcoin settlements in countries across the globe. While many nations, like Japan and the U.
However, the overall increasing acceptance of bitcoins is indicative of more and more global users willing to transact in them. The existence and continuously increasing influence of a parallel, borderless economy which is out of control of any central authority is also putting the business of the traditional card and merchant payment service providers at risk.
From a time where everything was being dealt in fiat currencies to now, where an increasing portion is switching to cryptocurrency dealings, the associated services linked to fiat currencies are bound to feel the heat.
Technological advances and the evolution of new offerings will continue to emerge. Investing in cryptocurrencies and Initial Coin Offerings "ICOs" is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs.
Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.
As of the date this article was written, the author owns no cryptocurrencies. Your Money. Personal Finance. Your Practice. Popular Courses. Bitcoin Guide to Bitcoin. Cryptocurrency Bitcoin. Key Takeaways Touted as "the secure money of the Internet," bitcoin is starting to become accepted as a form of payment, similar to credit cards, at many businesses. Bitcoin payment services act as an intermediary layer between the payer and receiver for processing of the bitcoin payments; multiple platforms including Shopify and Magento offer support for receiving bitcoin payments.
The bitcoin payment service instantly converts the received bitcoins into the currency of your choice, eliminating the volatility risk. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Related Articles. Banking Alternate Methods of Online Payment. Bitcoin Bitcoin vs.
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