10 Bitcoin Payment Gateways Online Entrepreneurs Should Know AboutWritten by Romexsoft on October 27th, 2017
Get to know the best Bitcoin payment gateway for an e-commerce website along with the benefits of implementing one for your business.
Did you know that May 22 is a little known holiday called “Bitcoin Pizza Day”?
It refers to the day in 2010 when Florida resident, Laszlo Hanyecz got online with an offer to pay 10,000 Bitcoins to anyone who was willing to have two large pizzas delivered to him. A Brit took him up on the offer, and for the $25 pizza cost, received his 10,000 Bitcoins.
If he still owns them today, they are worth about $40 million, considering that Bitcoin is now trading around $4600 per token.
This is the first known example of a Bitcoin transaction.
Remind Me, What Is a Cryptocurrency?
Today, Bitcoin is the most famous cryptocurrency – a digital currency that is used for transactions that are encrypted and made secure through a technology known as “blockchain.”
It is not a currency created or regulated by any government – it cannot, therefore, be manipulated or interfered with by any central authority. Instead, transactions are verified by so-called “miners,” placed in a “block,” and permanently stored in a ledger that cannot be altered.
One of the “beauties” of cryptocurrencies is that transactions can occur in cyberspace with no fiat currency having to exchange hands. Such transactions are a lot cheaper than the typical charges from a traditional bank, one of its most attractive features. The value of a cryptocurrency, when it is exchanged for a fiat currency, depends on the current market price, just like a share of stock.
While Bitcoin and other cryptocurrencies that have since been created were originally the butt of jokes and considered “fake” money at best, the e-commerce world has now sat up and taken notice.
In fact, it is a smart business that will explore its options for establishing Bitcoin as a transaction currency for its online purchases. Many already accept Bitcoin payments, and the growing popularity is the result of many factors.
Why You Should Get on Board
Bitcoin for B2B payments, especially for international payments, is becoming more and more commonplace. The advantages, however, are also there for B2C e-commerce businesses.
Here are just a few of the benefits to accepting Bitcoin payments:
- Businesses that have an international customer base can implement Bitcoin payment methods and never again have to be concerned with currency exchanges and the fees involved.
- Payment processing using blockchain is permanently recorded in a public ledger, so there is never a question about transactions – where did it come from, is it fraudulent or not?
- Transaction confirmation usually occurs within 10 minutes or less.
- The application of blockchain technology in payments makes them more secure. It is also much safer to store Bitcoins rather than large amounts of currencies. Blockchain technology has lots of computing power that secures Bitcoin storage.
- Processing fees are much lower and are paid by the purchaser.
- There are no monthly or subscription fee requirements with Bitcoin, a big savings over using a standard bank account or payment processing. Some payment processors have limits on the size of transactions – a problem with big-ticket items. This is not the case with Bitcoin.
- A customer’s Bitcoin wallet can be used for a purchase on any device.
- Millennials, fast becoming the largest consumer market, are embracing Bitcoin and blockchain payments solutions as more trustworthy and efficient than traditional payment methods.
The decision to adopt a Bitcoin payment gateway for an e-commerce website is no longer a question of “if,” but, rather, a question of “when.” However, this decision will rest with which cryptocurrency payment processor to choose to best meet your company’s needs. And there are several options.
Top 10 Bitcoin Payment Gateways
Finding a bitcoin payment gateway for an ecommerce website is no longer a problem. Here are 10 popular and current payment gateway options. (Comparison table of Bitcoin payment processors included.)
Thousands of Shopify merchants are now accepting Bitcoins. Shopify will assist in bitcoin payment gateway integration and even provides a 14-day free trial. To use this option, however, you need to be a Shopify merchant, but there are some good features on this platform.
You can setup Bitcoin in your brick and mortar store using a tablet or POS device or a mobile app, as well as on your online shop.
AlfaCoins offers the same bitcoin payment integration that other processors do. A couple of unique features are that incoming payments can be split between cryptocurrency and fiat, and it supports Bitcoin, Litecoin, and Ethereum. The transaction fee is 0.99%, typical of most processors.
The company offers extensive API for developers to streamline some of the steps for how to integrate bitcoin payment gateway features.
CoinGate website provides more specific information than most others. It processes Bitcoin and 40+ Altcoins, and, as a part of its service, will immediately transfer payments back to Euros or USD, once the customer has made payment. Values are updated every 60 seconds. It will also accept altcoin payments and transfer them to bitcoin payments if a merchant wants to do that.
GoCoin has coded and implemented its payment processing on most major shopping platforms (e.g., Magento, Shopify). The API is relatively simple for developers to work with. The process for merchants to accept alt currency payments is essentially the same as other payment gateway providers, and the fee is a standard 1%.
BitPay prides itself on simplicity, specifically with shopping cart plugins and its sample code libraries in both PHP and Node.js. For the Bitcoin merchant, payment instructions are displayed on the website and the customer does not need to leave the site to check out, making the online payment gateway super streamlined. Other features are pretty standard.
WordPress has rated GoUrl as one of its top bitcoin plugins. Nice features include integration with all website pages and no navigation to external payment pages. Other features are pretty standard, such as receipt of bitcoins directly into the merchant’s wallet with conversion to USD/Euros/other currencies at any time after that. Conversion is not automatic, however, so the rate will depend on what it is at the exact time of conversion.
This site is not a POS or online payment gateway. It is a part of the BitCoin informational site and houses a wealth of information for merchants who are ready to adopt Bitcoin payment technology. It lists a large number of blockchain-based payments processing services, along with a few videos for merchants to understand how to set up a bitcoin payment processor.
The company has been around since 2014, mainly specializing in the European markets. Besides Bitcoin payment gateway API, BitcoinPay offers lighting-fast transaction speed, the lowest transaction fee of 0.8% and payouts in multiple currencies (US, Euro, PLN, CZK and others). The account approval process is reported to be rather fast and simple as well.
This site provides the simplest explanation of how a BTC payment gateway actually operates. If you are now quite certain about the process for how Bitcoin is received and then converted, this is a good site to visit. In terms of features, SpicePay offers the same as other processors, including the 1% processing fee.
Spectrocoin is rather an all-purpose site for anyone wishing to deal with Bitcoin. It is an exchange, a place for consumers to obtain a Bitcoin debit card or to get a Bitcoin mobile wallet. And there is an entire section for merchants who want to accept Bitcoin payments in their physical or online shops.
One feature that it promotes is the automatic and immediate transfer of a bitcoin payment into the merchant’s desired currency so that there is no risk of volatility in exchange rates. Just as the majority of other payment processors, it offers Bitcoin payment gateway integration via e-commerce shopping cart plugins or processing API.
Coinbase is arguably one of the most popular bitcoin marketplaces, now offering payment gateway for merchants in 32 countries. The company already has some big name clients on board like Expedia and Overstock.com, which can tell a lot about their product quality. Particularly, their payment solution allows creating a sleek, straightforward mobile-friendly checkout experience for the customers. The merchant account approval process can be somewhat protracted though.
And here’s a comparison table of 10 Bitcoin payment processors to help you choose the optimal one for your product.
Comparison table of 10 Bitcoin payment processors
|Payment Processor||Transaction Fees||Key Features||Technology Integrations||Cons|
|Shopify||Vary depending on the bitcoin payment processor you choose.||· Easy-to-setup with extensive documentation available.|
· PCI compliant solution.
· Supports bitcoin payments through POS applications.
· Shopify platforms come with a lot of extra tools to set up and run an e-commerce store.
|Has APIs to create integrations with Coinbase, Dwolla, BitPay, and GoCoin||You need to have a Shopify merchant account and have Shopify Payments activated to avoid additional transaction fees.|
|AlfaCoins||0.99%||· Mature payment processor with extensive API documentation.|
· No charges for installing the payment module and no subscription fees.
· Also offers a payout system to handle mass payments (e.g. salaries/bonuses).
· Allows splitting incoming payments into two parts – cryptocurrencies (Bitcoin, Litecoin, Ethereum) and fiat.
· Bitcoin payments can be withdrawn to the bank account in Euro or USD from all countries except North Korea and Iran.
|Can be used for applications built on Java/Ruby and other popular programming languages.|
Uses REST and JSON-RPC calls.
WooCommerce plugin available.
|CoinGate||1%||· Supports POS sales through an iOS/Android app.|
· Multiple integrations and plugins available.
· Apart from Bitcoin supports payments in 40+ alt coins.
· Allows creating bitcoin payment/donation buttons for any websites.
· Account verification takes around 1 hour.
· Receive payouts in EU/US to your bank account.
· Round the clock tech support for users.
|Plugins and extensions available for WooCommerce, Magento, OpenCart, ZenCart, PrestaShop and other popular ecommerce solutions.|
API documentation available for Ruby and PHP.
|No documentation for Java, .net, and Python based applications.|
|GoCoin||1%||· Superb documentation for developers.|
· Dedicated customer support team.
· Attractive, time-sensitive and easy-to-pay invoices.
· Shopping cart plugins available for multiple platforms.
· Payouts are scheduled as wire transfer in USD.
Shopping cart plugins are available for Shopify, WooCommerce, Magento, UberCart, ZenCart, Prestashop, NATS4, OSCommerce, and others.
|Fiat payouts are not supported for businesses based in the Balkans, Belarus, Burma, Cote D’Ivoire (Ivory Coast), Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria, or Zimbabwe.|
|BitPay||No transaction fees for 30 days. Capped at $1,000 daily and $10,000 annually.|
1% for transactions going above the cap.
|· Set custom transaction speed depending on your preferences.|
· Two-factor authentication for accounts.
· Invoicing supported in 40+ languages with calculated pricing displayed on an invoice in 150 currencies.
· Bank payouts in Euro, USD, GBP, and five other currencies.
· Supports payment protocol (BIP 70 and BIP 73), which adds an additional level of security.
· Hassle-free bitcoin refunds.
· Ledger payment tracking available.
|Open source plugins available for the majority of popular e-commerce solutions.|
Compatible with the next POS systems: Ingenico, NCR Silver, DC POS and others.
Compatible with accounting software – NetSuite, Paydici, InvoiceNinja and others.
Code libraries available for Ruby, Python, C#, Java, Perl, PHP, Go and Elixir.
|Direct bank deposits in fiat are supported only for 38 countries – Australia, New Zealand, The USA, The UK, Mexico, South Africa, and EU countries.|
Additional transaction fees may apply for businesses in the high-risk industries.
|GoURL||1.5% to accept payments on websites.|
3.5% if you are using Monetiser Online.
|· No ID or bank account needed to start accepting payments. The platform is highly anonymous.|
· With Monetiser Online you can create a payment URL in one click and accept payments without installing any integrations.
· Works with all popular bitcoin wallets.
· Offers detailed payment statistics.
· Compatible with bitcoin debit cards for payouts.
· All payments are forwarded to the merchant’s wallet within 30 minutes. The processor does not store customer’s funds.
· Payment processing takes just 5 seconds.
|APIs available for PHP, Python, ASP, Java, C#.|
Customizable WordPress plugin available.
|Doesn’t support direct bank payouts. You will need to take an additional step to enable those and create an account on a supported crypto trading platform.|
|BitcoinPay||0.8%||· Fast and sleek account approval.|
· Support payouts to bitcoin wallets, bank accounts, e-wallets, and in cash.
· Bitcoin payments are credited and confirmed within a few seconds.
· Attractive and detailed reports available.
|Well-maintained custom API documentation.|
Shopping cart plugins available for WooCommerce, Magento, OpenCart, PrestaShop.
|SpicePay||1%||· Currently offer free integration and support + zero fees for new merchants.|
· Apart from accepting bitcoin payments, you can get paid through SEPA/Wire transfers, PayPal or debit card in USD/EUR.
· EU merchants can access funds in 24 hours.
· Payouts can be done manually or scheduled automatically in BTC, USD, EUR or a combination.
|Don’t publicly state what kind of shopping cart integrations and custom APIs are available for merchants.|
|Spectrocoin||1%||· Offers automatic and immediate transfer of a bitcoin payment into the merchant’s local currency to avoid exchange rate volatility.|
· Mass bitcoin payout option is available.
· No verification needed to obtain an account.
· Extensive API and integration documentation available.
|Payment plugins are available for Magento, Drupal, OpenCart, Prestashop, WooCommerce, ZenCart, and VirtueMart.|
Code libraries are available for Java and PHP.
|Coinbase||No transaction fees if you keep the funds in BTC.|
1% transaction fee for converting BTC to your local account currency, yet only after $1,000,000 in sales.
|· Highly customizable checkout experience.|
· Mobile-friendly design.
· You can select among embedded widgets, plugins or built a custom integration with their API.
· Two-click payments for Coinbase wallet holders.
· Instant exchange available for payouts.
· Supports invoicing via email.
· Supports microtransactions in bitcoins.
|Code libraries are available for Ruby, Python, PHP, Node.js, Java.|
Mobile code libraries are available for Android and iOS SDK.
Shopping cart plugins are available for WordPress, WooCommerce, Magento, ZenCart, foxycart!, Spreecommerce.
Obviously, the options for selection of a Bitcoin payment gateway are many, and there are new ones popping up all the time. In general, they all have certain standard features that will allow any merchant to start accepting Bitcoin payments. Variances include minor ones in processing fees (0.8% – 1%), working with other altcoins in addition to Bitcoin, and the amount of development that is required to integrate each bitcoin payment gateway.
In all cases, finding a developer with experience in Bitcoin payment integration will be important, in order for the processing to be seamless for the customer and for you on the receiving end. And while all of the above processors offer great features, there will be customizations that you will want.
Experienced development teams at Romexsoft can provide the perfect integration for your unique Bitcoin payment gateway needs. We’d be delighted to offer the initial consultation and assessment based on your current interests and future expectations!