Cointeo Crypto Payment
Last updated
Last updated
A payment gateway is a technology solution that allows merchants to accept payments from customers. Traditionally, payment gateways have facilitated payments through credit cards, debit cards, bank transfers, and other forms of fiat currency. However, with the rise of cryptocurrencies, some payment gateways have also begun to support transactions with digital currencies.
Cryptocurrency payment gateways work similarly to traditional payment gateways. When a customer wants to make a purchase using a cryptocurrency, they select the appropriate payment option at checkout. The payment gateway then generates a unique payment address, which the customer uses to transfer the cryptocurrency from their digital wallet to the merchant's digital wallet. Once the payment is confirmed on the blockchain network, the payment gateway notifies the merchant that the transaction has been completed.
One advantage of using a cryptocurrency payment gateway is that it can be faster and more secure than traditional payment methods. Cryptocurrency transactions are processed quickly and securely on the blockchain network, and the use of a payment gateway helps to further ensure the transaction's authenticity and security.
Another advantage is that cryptocurrency payment gateways can allow merchants to accept payments from customers located anywhere in the world, without the need for a traditional banking system. This can be especially useful for businesses that operate globally and want to avoid the fees and delays associated with cross-border payments.
However, there are also some disadvantages to using a cryptocurrency payment gateway. One is that not all customers may be familiar with how to use cryptocurrencies or have the necessary digital wallets. Additionally, the value of cryptocurrencies can be volatile, which can create uncertainty for merchants when accepting payments in this form.
Overall, cryptocurrency payment gateways offer a new and innovative way for merchants to accept payments. While they may not be suitable for every business, they can be a valuable tool for those looking to take advantage of the benefits of blockchain technology and the global nature of cryptocurrencies.
First of all, our products will need a Payment Gateway. Not any payment Gateway, But a Crypto Payment Gateway with Anonymity features. This type of solution is very rare and expensive, so we choose to build one for our product.
Secondly, the global cryptocurrency payment apps market size is expected to reach USD 2.15 billion by 2030, growing at a CAGR of 16.6% from 2022 to 2030, according to this study conducted. It means, there is a potential market to take part in and propose our solution to new customers.
Here is an example of the growth of Coingate, one of the top Crypto Payment processor in the industry :
Over the span of 2022, however, CoinGate-powered merchants have collected 927,294 payments in total, or approximately 2.7 times more than the yearly average, marking a 63% increase from the previous year of 2021.
To put this number into perspective, that’s one paid order processed by CoinGate every 34 seconds. That’s impressive, considering the depth of an ongoing bear market, which suggests that hemorrhaging markets do not necessarily discourage people from going on a shopping spree. Coingate Blog
Yes and no. If we take Coingate as an example and consider integrating their system into our product, we would be required to pay a 1% fee for every transaction made. Let's provide an example to illustrate this further. Suppose we generate $1 million in one year of production. In this case, we would pay $10,000 (equivalent to 1%) to Coingate. While $10,000 may not seem like a significant amount, it becomes a substantial expense if we were to generate $10 million in one year, as we would then pay $100,000.
Given the scale of our digital ecosystem, we believe it is more advantageous to develop this product internally initially. We can then scale it and potentially offer a paid plan. This approach allows us to retain control over costs and ensure the long-term sustainability and profitability of our ecosystem.
Please refer to the global roadmap for more information about the roadmap by clicking here.