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Which Crypto Payments Provider to Select? Payments Service Provider

Nov 25, 2022

This article will help you make the important decisions you'll need to make in the coming months, as well as give an overview of all the possibilities that are available from different varieties of solutions. We'll also help you understand some terms along the way.

Two ways to pay with cryptocurrency

If you wish to take cryptocurrency on your website there are two choicesavailable:

  1. Cryptolite If you'd like to use cryptocurrency for paying for your purchases, but you're not at all interested in that, then this could be the perfect solution for you. It is essential to discover options that will guarantee you receive an appropriate amount of money to your account as fast and as cheaply as you can.
  2. More: This category can become complicated very quickly. If you'd like to protect all or perhaps the entirety of your cryptocurrency digital currency, permit an increased number of currencies, or even to sell NFTs, you'll need the most advanced techniques.

Selecting between a custodial or non-custodial crypto service

In the event of accepting cryptocurrency on your site your primary decision to make is deciding whether you'd prefer to utilize a custodial or non-custodial payments service.

It's good to make a choice of "crypto lightweight" or "something other than."

Service providers of custodial crypto payments

A lot of merchants choose this option to ensure assurance and simple user experience. The support you receive is accessible and you can also read the conditions of service will allow you to avail other benefits (such as automatic settlement to your bank) because your service provider manages the crypto accounts on your behalf.

If you're looking to go "crypto light"," the custodial crypto payment services can be the ideal choice.

The advantages of using Custodial Crypto Payments provider comprise:

  • A fully-integrated extension
  • The ability to accept any cryptocurrency or a combination of cryptocurrencies from the customers
  • Payments are sent directly into your bank account, fiat currency
  • Access to your account via your email address and the password
  • Support Services
  • Low transaction fees and guarantee against chargebacks and reimbursements

Crypto payment providers that are not custodial solutions

If you're an expert on cryptocurrency but would like to have access to more advanced capabilities, you may want explore a non-custodial option. If you choose the non-custodial option, it will give you complete authority and control over the security and management of your crypto accounts. This isn't something to be taken lightly. But, for store owners this unlocks all the potential that cryptocurrency has.

The benefits of custodial Crypto payment system:

  • Control and access to your cryptocurrency from the moment it's accepted - no waiting for a payment from a third entity.
  • Fewer restrictions from Terms and Conditions - No person can cancel or suspend your account or services.
  • The actions you take are only subject to applicable laws as well as your personal abilities. You can sell whatever you'd you'd like and manage your currency however you feel fit.
  • It is the sole responsibility of your account's security . No third-party data breaches or hacking attacks could negatively impact the funds in your account.

Crypto vocab check

Fiat cash: Currency issued by the state (e.g. USD, EUR, GBP).

Cryptocurrency: It is a currency protected via the use of digital encryption (e.g. BTC, ETH, DOGE).

Stablecoin: The cryptocurrency that is tied to fiat currency. (e.g. USDC where 1 USDC is 1 USD).

The advantages of cryptocurrency payment providers

There are plenty of features to think about in deciding between custodial and non-custodial services.

Below, you'll be able to see an exhaustive list of choices and considerations to illustrate how various options work. In using the list, keep in mind that the table provides a broad guide to what's possible. There are partners who may not give the full range of options.

Feature Custodial Non-custodial
A contract with a third entity You can sign up for a service with a corporation that is subject to the terms of service. Y N
Account recovery
If you're not able to access your account, request a password reset or account recovery service through the service provider. 		Y N
Support
You'll be able to access and seek assistance through the service. 		Y N
Automatic exchange of stablecoin or other crypto
There is the option to have the crypto converted to a different crypto or stablecoin. 		Y Y
Automatic exchange to fiat
It is possible to opt for the crypto converted automatically to fiat. Be aware that the calculations used for exchange rates and rates will differ depending on the partnership. 		Y N
Automatic transfer of funds to your bank
There is the option to have your funds settled at a time and automatically transferred to your bank. 		Y N
You will receive the exact value of currency that is fiat
It also reduces the chance of being affected by crypto price fluctuations. The non-custodial solution can help limit - though not entirely eliminate fluctuations, by choosing to accept stablecoins. 		Y N
Specific features for retailers
Some providers offer features to make it easier for merchants to save time and energy. These include things like risk profiling (to ensure your business doesn't be able to get money from bad actors) as well as security against underpayment or overpayment and invoices via email. 		Y N
Transaction finalization protection
Blockchains depend on blocks being made to conclude transactions. The greater the number of blocks that are created after a particular transaction, the safer that transaction will be. Secure transactions help to reduce the possibility of sending goods and having the transaction reverse. 		Y N
Funds insurance
Custodial as well as other options are at risk to be hacked. Funds insurance can protect users using a custodial system. The protection offered by insurance companies differs, and companies should be aware of their partner's insurance and reimbursement policy. 		Y N
Y Y
Supports subscriptions/recurring payments
Paying with cryptocurrency will need to authorize every payment. This means that regular payments are not an option. However, certain custodial services offer the ability to generate and automatically send invoices on a regular basis. 		N N
Costs of transactions are very low
Custodial as well as non-custodial service providers generally offer less transaction fees (1-1.5 percent) that traditional suppliers (2-3.5 percentage). 		Y Y
Exposition to cryptocurrency network (e.g. gas) fees
Direct cryptocurrency transactions are accompanied by the network's own fees. with Ethereum becoming the largest and most well-known cryptocurrency, they're referred to as gas fees. Certain payment processors pay the charges, while other companies pass those fees onto the user. 		N Y
Control solely
The sole person who is able to conduct transactions out of your account. The other entities or individuals cannot approve transactions without access to your personal key. 		N Y
Accept all cryptocurrency and networks
The companies that process crypto transactions offer a variety of crypto-currency networks and currencies. Custodial services are restricted by the currency they support. Alternative solutions that aren't custodial offer more options. 		N Y
integration
While it's one thing to get an amount of money, but it's quite another to determine which person made the payment and for what purchase. Our partners provide solid integrations, ranging from setting up to day-to-day administration. 		Y Y

Review your options and choose the right cryptocurrency payments provider to run your business.

It can be difficult to understand the various options available for cryptocurrency. It's worthwhile to choose payment methods that meet the specific requirements of your clients and their needs. Be sure to go over the pros and cons of the two kinds of crypto payment providers. Then, think about which one is best suited to your particular business.

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