Table of Content
October 15, 2024
Table of Content
CoinPayments, launched in 2013, has established itself as a leading cryptocurrency payment processor, allowing businesses to accept over 1,300 cryptocurrencies.
With a current presence in 182 countries and nearly 2.5 million vendors utilizing its services, CoinPayments has grown significantly, with processing volumes almost doubled since early 2021.
This surge is due to the growing trend in the market where cryptocurrencies are viewed not only as investment assets but as a viable currency for everyday transactions!
The platform's ability to facilitate transactions in popular coins like Bitcoin, Ethereum, and Tether makes it as a crucial player in the evolving landscape of digital payments.
The idea behind creating a cryptocurrency payment gateway, like CoinPayments, is appealing because more businesses and consumers want to use cryptocurrencies.
As more shops look to accept digital currencies, there’s a big chance for entrepreneurs to make money and reach new customers.
By starting a crypto payment gateway, business owners can enter a growing market with lots of potential to make profits.
This is a smart move for those who are interested in innovation within the fast-evolving financial technology sector.
To put it in simple terms, setting up a crypto payment gateway allows businesses to adapt to new payment trends and increase their sales by attracting customers who prefer using cryptocurrencies!
In this blog, we will walk you through the necessary steps involved in creating a crypto payment gateway like coin payments along with its features, best practices, and future trends.
Let us explore!
A crypto payment gateway is a gateway that acts as a bridge facilitating transactions between sellers and buyers through the usage of cryptocurrency as a means of paying for goods and services in any business. Businesses will be able to accept digital currency as a mode of payment for goods and services, and then convert it to fiat if they need to.
Here are the common operations of a crypto payment gateway:
The following features would be included to create a successful crypto payment gateway like CoinPayments
Enable merchants to accept more than one cryptocurrency and digital currencies for seamless transactions.
Your dashboard should allow the merchant to make respective transaction management along with analytics on sales performance and transaction history.
Include all the above-listed security measures and
APIs have to be provided through which businesses can integrate your payment gateway with their system without much hassle.
The gateway needs to be mobile-friendly and the transactions should be done rather conveniently on a mobile device.
The option of real-time settlement needs to be given in such a way that the merchant receives payments immediately after the completion of the transaction.
Provide strong customer support accessible through multiple channels to resolve the issues as soon as possible.
An excellent crypto payment gateway requires a good technology stack. As hinted earlier, here are the stacks that you have to consider
Node.js or Python especially because it is best suited to handle challenging and bulk operations with respect to crypto trading.
You can use one of the popular JavaScript frameworks such as React or Angular to make the user interface intuitive and attractive.
Utilize blockchain technology to secure transactions; you can build your blockchain, or you can integrate using other pre-existing blockchains like Ethereum or Bitcoin.
You'll pick a good database management system, for instance, PostgreSQL or MongoDB that can store transaction data.
You will be harnessing a cloud hosting service, such as AWS or Azure, for scalability and reliability.
Creating a crypto payment gateway can be approached in two different ways i.e. building from scratch or using a clone. Each method has its own set of steps and considerations. Let us view it one by one,
Building a crypto payment gateway from scratch involves several critical steps and considerations that ensure a secure, efficient, and user-friendly platform for processing cryptocurrency transactions. Here are the steps involved,
Deeply research your target audience and analyze the competitors within the crypto payment gateway space. Understand exactly who the potential users are and what needs or preferences they may have, while also ensuring there is a gap in the current offers that your gateway will fill. This becomes the foundational step and will guide your strategy and position you correctly within the market.
Determine the fee you want to charge, whether it's through transactions or subscription models, or a combination of both. Think about the added-value services you can offer users in terms of more advanced security features or analytics tools that warrant such a pricing model. This will bring in merchants and customers alike.
Design wireframes and prototypes that can easily provide effective navigation for the merchant as well as the customer. There must be aesthetic appeal in the design, but functionality that makes it easy to complete transactions by the user. During this stage, users can be tested to yield feedback to improve further.
It should have a strong back end that addresses transaction processing, wallet management, and security of the application. Implement best coding practices for reliability and scalability. A strong back end is the only support to stay credible and efficient with operations through users.
Design APIs so that integrations with other e-commerce platforms and services are as easy as possible. That means it is easier for a merchant to easily adapt your payment gateway without having to replace much of their system, thereby boosting user acquisition.
Thorough testing should, therefore, be done with unit tests, integration tests, and acceptance testing to ensure your application is secure from known threats and works as desired. This is crucial for developing a product that the consumer might trust.
Once you have tested and are sure how your application will perform, launch it to the general public by opening your crypto payment gateway. Always be prepared with a good support system because users may hit you hard during the introductory phase.
Develop a holistic campaign that will reach out to the merchants as well as consumers in order to make a quantum leap in the awareness of the payment gateway. Use media that connect individuals, content marketing, and SEO plus partnerships in order to create awareness of your payment gateway. Emphasize unique features and benefits that distinguish you from rivals.
Launching your crypto payment gateway using a CoinPayments clone is generally faster and more cost-effective. Take a look at the steps involved,
The very first step is to choose a reputable company that offers a crypto payment gateway clone. But, how to choose your perfect partner?
No worries, Fourchain a leading crypto payment gateway development company will be the right choice, to embark on your journey!
Customize the pre-built solution to fit your brand's needs including designs and features.
Seamless integration of the crypto payment gateway with existing systems is a must for smooth operations. This can be done through various methods such as API, Plugins, and so on.
Implementing strong security measures is very important to protect sensitive transaction data and user information. This includes adhering to the provider's specifications for encryption, secure user authentication, and regular security audits.
Test your customized crypto payment gateway, to check its performance and identify issues beforehand. So, that your gateway will be flawless during launch.
Once you are done with all the above steps, your crypto payment gateway is all set to be launched. However, the deployment of the solution should be executed with some marketing efforts to attract early users.
Both methods come with their own advantages and disadvantages. However, it is you who have to make decisions between them based on your specific business needs, budget, and timeline!
The following would be the best practices for successfully executing your crypto payment gateway
Put security in the early stages of development. There are various security factors to be taken into consideration.
Keep up with local regulations of your transaction so that they can be compliant. You can check for regulatory compliances across various parts of the globe and make it compatible for you.
Spend enough time designing an intuitive user interface since it is the place where traders find it effective for their everyday operations.
Make sure you build an infrastructure that will scale in growth in the future based on the growing needs.
You have to treat your platform as dynamic, and you will be changing it according to the feedback from users and the impacts of emerging technologies.
Despite scope, here are a few challenges pertaining to building a crypto payment gateway like Coinpayments
It deals with intricate patterns of regulations that include KYC/AML checks. Also, the restrictions across countries globally.
Hackers often primarily focus on targeting the cryptocurrency space; very high-security measures are the need of the hour.
It is well-known that the price volatility of cryptocurrency may, therefore have a definite impact on the value of transactions. To deal with risks in real-time conversion rates or locking prices at transaction time should be adopted.
The crypto payment gateway landscape continues evolving with trends that might define its future.
Businesses would show interest in stablecoins tied to assets that have their value stabilized. This could be beneficial for improving the payment gateway functionality with connections to DeFi.
AI can personalize the customer experience while still making it more secure with auto-fraud detection.
It is not easy to develop a crypto payment gateway like CoinPayments, but it has to be well-planned and executed effectively. Now, it will be done with the right mix of multi-currency functionality, security features, and friendliness on the user interface through the right technology stack.
The more cryptocurrency's acceptance increases, the more chances for your crypto payment gateway to occupy the frontline position of this evolving financial landscape!
Join hands with Fourchain today, to kickstart your journey in crypto exchange.