Explaining Multi-Cryptocurrency Payment Gateways
A general misconception with digital currency, which also creates confusion amongst the population, is that cryptocurrencies transactions are not easy, and are usually difficult to process and much more difficult to understand. The misunderstanding of such notions can be cleared by the awareness of Cryptocurrency exchanges,
Cryptocurrency Wallets, and Multi-Cryptocurrency Payment Gateways.
Payment Gateways- Business Model
Before you get into the mode of understanding- multi-Cryptocurrency payment gateways you should be aware of what are – Payment Gateways?
They are online pages which capture the data of payment instrument between a merchant and consumer. They are usually the checkout pages, for such transactions, and capture the data in encrypted form and pass it to the payment processor. The processor, in turn, verifies or authenticates it and does the settlement of funds.
You may come across various Payment Gateways like-
APIs – Like- Coinbase, which can be embedded in the client’s website.
Hosted Pages- Like- bitpay, where customers are redirected from the original business page.
Horizontal Gateways- Like- BlueSnap, which are a composition of APIs and Hosted pages.
White Label Gateways- Like- MI-PAY.
And, Aggregators- Like-gate2play, where transactions are routed through multiple gateways.
What are Multi-Cryptocurrency Payment Gateways?
While Cryptocurrency exchanges allow you to buy, sell and trade digital currencies; Multi-Cryptocurrency Payments like- Wallets, permit you to store, send and receive altcoins using private and public keys.
When it comes to understanding Cryptocurrency Payment gateways, the question arise – are they similar to traditional payment gateways?
It is believed that the multi-cryptocurrencies payment gateways are much safer than conventional payment gateways as they are decentralized payment platforms. They allow sending and receiving payments in multiple cryptocurrencies, and in the process reduced mediators. Thus they actually promote the frequent use of digital currencies amongst people.
By virtue of being operated on blockchain system, the payments are highly encrypted and hence are safer. They also enable global transactions in multiple altcoins. Transactions can happen between, suppliers, distributors, businesses, consumers and the best part is it happens with seconds.
Smart Contracts- Accuracy and Automation Personified
The concept of smart contracts used for payments. They are software programs which act as contracts between both parties, without the intervention of a third-party controller, as happens in a normal contract. Usually, a governing agency is approached in case of any breach of contract. But there are no such chances of breach here as the smart contracts once negotiated and closed work automatically with efficiency and reliability.
Smart contracts are also used to trace back transactions and they allow the same for any audit purpose and hence are accessible and transparent.
Reason for Stress-free transactions
With such kind o security, precision, and reliability both parties in the transaction are free from any hacking in-between. Hence decentralized payment platforms are the first choice for merchants. These payment gateways facilitate- faster settlement, low processing charges, faster transactions and assured and safe payments.
Advantages over Traditional Payment Gateways
Worldwide, merchants and online retailers are most satisfied using decentralized payment gateways. Of course, they have their valid reasons for getting happy, and they are:
1. Traditional Payment gateways have a lot of rules and regulations. They are risky and global transactions are often restricted. With Multi-Cryptocurrency payment gateways you are allowed to make transactions from 500 different Alt-coins.
2. Traditional payments are depended on various processes which need human interventions. As decentralized payments gateways are blockchain based, once the transactions are verified they cannot be altered even with any human intervention. Therefore the chance of any attack or alteration is impossible.
3. The absence of any human intervention, any regulations make it faster and reduced mediators. Hence there are reduced charges and transactions can happen across borders without any hitch.
4. The transactions can happen anywhere and anytime as they can be done through “Smart Contracts”. The traditional payments usually have bank charges, clearing houses cost, or transfer fees by third parties. Block-chain based technology of cryptocurrencies eliminates all such limitations and transactions happen with seconds once they are verified.
5. There are various options available with decentralized payments like- Mobile Wallets, Web Wallets, and much more. One such option which is free, fast and with reduced costs is Peer-to-Peer payments. Also termed as P2P mass payments they are popularly used for small payments.
You may also transfer funds while chatting with the option of –“In-Chat payment”.
It is hence proved that Multi-Cryptocurrency payments gateways perform the functions of – Authorization, clearing, and settlement faster than any traditional payment platform. They are not only faster and accurate but are more powerful and robust.
These are they features which make cryptocurrencies more popular and all the reasons for the exponential rise in their prices. Today, financial experts, industry professionals, bankers and big corporate houses are seriously thinking of investing in Cryptocurrencies as they find this as the next generation platinum.