The payment processing industry has evolved massively over the years. From the long life of bank-issued credit and debit cards to the emergence of digital wallets and blockchains, global monetary transaction methods have seen significant changes.
Initially, exclusive to crypto enthusiasts and tech-savvy companies, crypto payment services are now being integrated by more non-blockchain organisations and traditional financial firms to increase their reach and adapt to changing user preferences.
Today, there are plenty of choices to transact with cryptocurrencies, and an increasing number of service providers offer these capabilities at lower costs. One such option is the open-source payment gateway. What are they, and how can businesses use them? Let’s explore.
Understanding Open-Source Crypto Payment Gateways
Payment gateways are tools that facilitate electronic payments, whether using credit cards or Bitcoin. These gateways act as the medium between the buyer and the merchant account.
Crypto payment gateways allow users to pay using Bitcoin, Ethereum, Tether, or thousands of other blockchain-based coins and tokens. These applications are usually provided by third-party operators who charge certain fees in exchange.
Open-source gateways, however, are free-to-use tools that facilitate crypto transactions on your website. Businesses can integrate a crypto payment gateway from a GitHub repository to allow customers to pay using BTC, ETH, or other supported currency.
Unlike white-label crypto payment gateways, which are professionally developed and provided at a cost, open-source crypto payment gateways are free of charge. Companies can add and modify these tools to suit their unique needs and customer requirements.
Benefits of Open-Source Payment Gateways
Integrating open-source processors has its pros and cons. Brokerage startups use these tools to accept crypto payments without paying considerable service fees. Here are some advantages:
Cost-Efficiency
An obvious benefit of using open-source payment gateways is that they are available for free, unlike white-label payment gateway providers that charge service and maintenance fees. These tools are developed by random users who add them for free to the open source for public use. The only associated cost is hiring a development team to manage the integration and technical aspects.
Quicker Market Access
Finding and installing an open-source payment solution is a faster way to enter the market, offer your services, and get paid. They reduce the time needed to develop the transaction system from scratch using in-house teams. Even with elite developers, designing, coding, testing, and launching your solution requires significant time and money. This makes open-source crypto gateways a better choice for quick market entry.
Drawbacks of Open-Source Payment Gateways
The lack of fees associated with these solutions raises concerns regarding their reliability and trustworthiness. Here are some possible disadvantages:
Additional Charges
Most free tools lack complete functionality unless you pay additional fees. Open-source payment processors may offer basic functionality, allowing you to process transactions with a limited choice of currencies.
However, to unlock more use cases and serve an expansive list of customers across multiple payment methods, you might need to hire third-party services.
Technical Barriers
Many companies refer to open-source gateways solely because they lack technical expertise and want a minimal-cost solution. Using these solutions without proper technical knowledge can lead to incorrect implementations or malfunctioning features. Therefore, skilled developers are required to ensure proper service delivery without compromising user experience or security.
Final Thoughts
Open-source payment gateways are free solutions available on online platforms. Users can find and integrate these tools without paying, offering low-cost payment solutions that facilitate crypto payments.
However, the technical aspect of open-source solutions is the main challenge for brokerage startups without in-house developers. Weighing the pros and cons before using these tools is important to ensure they meet your business needs effectively.
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