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Bitpapa launches a cryptocurrency payment gateway

A payment gateway is a third-party service used by online stores to process customer payments, relieving merchants of the hassle of creating their own payment solutions. Then, a cryptocurrency payment gateway is the one that allows merchants to accept bitcoin and other cryptos as payment.

Bitpapa, a peer-to-peer marketplace, is developing its own implementation of such a service – Bitpapa Pay.

The need for cryptocurrency payment gateways

There are different types of cryptocurrencies Payment gateways that exist today. But they’re all basically trying to do the same thing, and that boils down to making life easier for people willing to buy goods and pay with crypto. After all, cryptocurrencies (or any other currency) are created for this – a means of payment in their own right.

Instead, cryptocurrencies became speculative assets. Some more, some less, but the sad reality is that you can’t buy much with any of them. There is no shortage of reasons and explanations as to why this is so. One is the sheer effort required to integrate crypto as a payment solution for online stores (actually more like a whole bunch of cryptos).

On the one hand, there are cryptocurrency users who are willing to pay for something they want with a cryptocurrency. On the other hand, there are merchants who want to accept crypto as a form of payment. And yet both parties to the potential trade eventually blame each other for failing to meet their interests.

Buyers say there aren’t many merchants willingly accepting crypto. Merchants, in turn, claim that there is not enough demand to justify adding the crypto payment option. Obviously this creates a dead end, a catch 22 situation if you will, although neither party is at fault here.

Cryptocurrency payment gateways are trying to solve this dilemma by offering online shops and businesses a simple tool that would allow them to start accepting crypto without a huge headache and overhead.

So there are two types of cryptocurrencies Payment gateways – those with fiat option and those without. The gateways with a fiat option (e.g. Coinbase Commerce) allow customers to pay with crypto by converting their coins into fiat on behalf of merchants. Accordingly, traders receive fiat into their bank accounts linked to their gateway account.

The other kind of cryptocurrency Payment Gateway allows customers and merchants to pay and get paid in crypto without having to involve fiat in the process. Unlike the first variant, all-crypto payment gateways allow businesses and customers to avoid the unnecessary costs associated with fiat payments and the resulting currency conversions.

Bitpapa Pay takes the second route, with a few useful benefits.

How it works

Bitpapa Pay extends the functionality of the P2P marketplace it is based on. The service supports cryptocurrencies such as BTC, ETH, TON, XMR (Monero), as well as USDT stablecoin (more will be added in the coming months), and customers can use these cryptos to pay at online stores using Bitpapa Pay.

Businesses can be interested in Bitpapa Pay for a variety of reasons. Unlike traditional banks, crypto transactions are processed 24/7 excluding weekends and holidays. Blockchains don’t differentiate between local and foreign transactions – you only pay so much. There is also no chargeback risk – once the transaction is confirmed, the payment is finally processed.

For a merchant, the process of activating and using Bitpapa Pay boils down to registering on the platform (which automatically creates a cryptocurrency wallet linked to the merchant’s account on Bitpapa) and integrating the Bitpapa Pay widget into theirs Online shop.

The widget is compatible with most CMS platforms and within minutes you can start using Bitpapa Pay and start receiving payments with no additional setup costs. Once payment is made, you will be immediately notified on the marketplace dashboard and your transaction will be processed immediately.

For a customer, Bitpapa Pay offers two payment options that become available after opting to pay with crypto on the checkout page of a Bitpapa Pay-enabled online store.

You can choose to buy goods with crypto even if you don’t have the cryptocurrency. You pay with fiat, and in this case, Bitpapa Pay acts as a fiat-to-crypto gateway by automatically converting your fiat payment into cryptocurrency via a P2P trade on the Bitpapa marketplace. It can be handy if, for example, an online store offers a discount for crypto payments on weekends and holidays.

Conversely, if you have crypto, simply select it from the list of cryptocurrencies that the trader has enabled on their website. You have about 30 minutes during which the exchange rate is fixed to protect you from rate fluctuations. After making the payment and the transaction appears on the network, you are pretty much done with the purchase.

In this way, merchants can receive payments from anywhere in the world in the cryptocurrency of their choice in a transparent and secure way, while customers can enjoy all the benefits of cryptocurrency payments.

Bitpapa Pay is a win-win solution for customers and merchants alike.

summary

Despite the explosive expansion of cryptocurrencies and the dramatic shift towards online shopping, there is still a large divide separating cryptocurrency users from online merchants. By developing its own cryptocurrency payment gateway, Bitpapa aims to fill this gap. Equipped with Bitpapa Pay, businesses will be able to take advantage of the wealth of opportunities that the crypto space offers and thereby increase their sales.

Most importantly, it will also help solve the constant problem that this space has faced since its inception. Bitpapa Pay will help users spend their coins in a really meaningful way, i.e. as a medium of exchange for goods and services.

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