What is Cryptocurrency payment processing?

In this new era of digital payments, crypto is a new digital currency that can be used to buy products and services digitally. There are “crypto payment processing gateways” available for customers on online shopping, gaming, and, casino websites to use, where customers can go link their crypto wallet it takes 2-5 minutes for the wallet verification and customer can start using wallets to pay on the websites they wish very seamlessly through the crypto payment gateway. “Cryptocurrency payment gateways” are transaction Handlers between merchants and their customers. Merchants use them to accept and process digital cryptocurrency payments. Besides giving big companies like Microsoft and Starbucks a competitive advantage, crypto payment gateways enable crypto-friendly companies to reap other benefits including protecting their business from chargeback fraud.

There are many cryptocurrencies that are launched and available in the crypto world, and work the same as foreign exchange every crypto has there value and it fluctuates like a stock exchange it can be converted into fiat with some percentage of exchange, and wallet holders can get the amount in their banking account. BTC is the best-performing cryptocurrency in the market in terms of valuation as well as acceptance everywhere within the digital currency world.

Get Blockchain payment processing

To perceive the “Blockchain payment process” let’s understand what blockchain 1st Blockchain refers to as a ‘chain of blocks. The blocks contain time-stamped digital records of any transactions or information exchange on the distributed network of computers. A “block” has its cryptanalytic hash, sort of a distinctive ID. Each block contains its hash and also the previous block’s hash, alongside information that connects the blockchain.

A new block is added to the blockchain whenever a brand-new transaction happens. every transaction 1st must be valid by all the network nodes, and also the nodes ought to come to an agreement via an agreement mechanism to validate a transaction. completely different “blockchains use agreement” mechanisms like Proof of Work, Proof of Stake, etc.

The “blockchain payments system” is not difficult. For a clear idea, we have explained how a cross-border payment can occur through a Stellar “Blockchain Payment” System with the help of an example.

Suppose you reside within the USA and pay $10,000 to a friend living in a European country. both of your banks are joined to the Stellar “blockchain network”, and here’s how the payment would take place:
1. You send a payment of $10,000 from your bank to your friend’s bank.
2. Your friend’s bank in a European country can receive a transaction request of $10,000.
3. His bank will approve the request once confirming with him.
4. After your bank receives the transaction approval, $10,000 is deducted from your account.
5. The $10,000 will move to your bank’s pool account, and it’ll convert to Stellar Lumens (XLM).
6. The Stellar Lumens can move to the Stellar Network, which is able to convert into Euros at the best rate of exchange.

7. The money will then be credited to your friend’s checking account in a European country in the form of Euros.
The banks act as “Anchors” within the Stellar Network. The bodies or organizations that hold deposits and issue credits as per the necessities are called “Anchors” within the Stellar Network. they’re a bridge between the currencies and also the Stellar network, as all money transactions occur in credit issued by Anchors within the Stellar Network (except XLM).

Now that you understand the operation of blockchain payment systems, allow us to look into how one will address the challenges of blockchain in payments We at Offshore Gateways provide consultation now to choose a wise “crypto payment processing solution” and we are able to provide our merchants with the best matching solution according to their business needs!

How to use cryptocurrency payment processing

A “crypto payment gateway” is a flexible platform for “payment processing” that enables vendors and merchants to accept payments in various cryptocurrencies without security risks. It makes it easier for consumers to transfer money directly from one cryptocurrency wallet to another. These “payment gateways” have a secondary duty to send sensitive wallet data from the payer to the merchant’s software in addition to their primary role. Such payment networks are becoming more widely accepted by businesses of all sizes as they search for the fastest, safest, and most profitable payment methods.

Fundamentally, blockchain technology, known for offering advantages like immutable records and transparent transactions, lays the foundation for “Cryptocurrency payment gateways”. Additionally, the decentralized structure of blockchain excludes intermediaries like banks from the payment process. Subsequently, it speeds up transactions and reduces the number of stages required for payment processing. Eventually, this mechanism promotes more individuals to utilize digital currencies and helps decentralized gateways gain popularity.

Apart from swiftly confirming the transactions and eliminating third parties from the payment system, “crypto payment gateways” offer a few other benefits to both users and merchants.

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