Crypto payment providers are among the fastest-growing blockchain services in 2021

If there is one industry that wasn't damaged by the Covid-19 pandemic, it's crypto. Bitcoin recovered from the initial March 2020 flash crash almost immediately, and capital flowed into digital currencies as investors looked for high-yielding assets that weren't so dependent on the governments' monetary policy.

In March and April 2021, as the world was panicking about the second Covid wave, Bitcoin reached a new all-time-high; and now, after the dramatic crash in May 2021 and two months of painful range movement, crypto seems to be coiling for an explosive Q4.

With the media spotlight on investment gains, one trend didn't receive enough media attention: the surge of cryptocurrency payments. Users don't just buy crypto to hold it until the price increases: thousands of people actively use coins to pay for goods and services online and online, especially in the e-Commerce and iGaming industries. This is possible thanks to cryptocurrency payment processors – specialized services that allow merchants to accept crypto safely and legally.

In terms of growth numbers, these services have been showing better results than the blockchain market as a whole. Why is crypto processing so crucial for the industry – and how are leading crypto gateways preparing for the next altcoin season?

Why merchants use Bitcoin payment processors

The primary function of a crypto payment gateway is to accept crypto from end users on behalf of merchants. Some of these support only Bitcoin and Ethereum, while others can process payments in dozens and even hundreds of different coins and tokens.

For a business, this is a far better option than accepting cryptocurrency directly using a regular blockchain wallet – for many reasons:

1) Fast implementation: a Bitcoin gateway can be integrated and set up in a few days.

2) Efficient use of time: a merchant cannot possibly track every payment manually to see if it's been successfully confirmed on the blockchain. A processor does this automatically, so that the merchant can focus on sales and growing their business.

3) Security: processors have intelligent security systems that block suspicious transactions (i.e. those originating in the darknet). A quality gateway also stores client funds in a cold vault, so that they can't be stolen.

4) Accounting and reporting: a licensed Bitcoin payment service will generate all the necessary receipts and confirmation documents needed for filing tax reports.

5) Easy crypto-fiat conversions. Understandably, many merchants want to convert Bitcoin into USD, euro, etc. to avoid price volatility risks. Some processors offer this feature, as well as direct fiat settlements (withdrawals to a bank account).

In conclusion: Crypto payments have a bright future

In the past few months, global companies like PayPal, Visa, and FIS have announced enhanced support for Bitcoin and crypto as a whole. Rather than create increased competition for processors, the entry of these large players is a positive sign of increasing adoption.

Payments in cryptocurrency are already common in some markets, such as iGaming, and in some regions, especially Latin America and Vietnam. Their volumes are still small compared to credit card payments, but the turnaround may be closer than we think.