How Does a Crypto Payment Gateway Work?
As crypto payment solutions continue to gain prominence, Online businesses are starting to wake up to the benefits of deploying crypto payment gateways Nevertheless, these solutions are only the starting point in a long process of online crypto payment.
TL;DR
- Payment gateways are only the starting point for initiating an online transaction
- Crypto payment gateways could be deployed through multiple means
- To complete an online payment, the crypto gateway interacts with the payment processor which then relays with the backend interface.
Payment Gateway as the Starting Point
To initiate a crypto payment on an online platform (say an eCommerce website), the user needs to interact with the physical options that have been integrated into the website. These options could be a payment button, checkout, or QR code. Once a user chooses their preferred option, the entire process of payment processing, authentication, and confirmation commences.
Interacting with Payment Processor
The moment a user connects their crypto wallet or input the necessary detail to complete an online transaction using a crypto payment gateway, the gateway conveys the details to the payment processor behind the scene.
You will notice that you will have to wait for a few seconds for a transaction to be complete. That period of waiting is where the interaction takes place. During this period, the gateway conveys the details of the transaction to the payment processor which is the software that organizes and authenticates payment.
The processor confirms that a user has enough money to complete the transaction in their wallet, then contains the specified amount to deposit in the designated receiving wallet address. Once this transaction is done, the backend receives the payment and sends a success message to the processor which then relays with the gateway. At this point, the user sees that their transaction has been completed.
Usually, the entire process takes only a few seconds and the user is not aware that such a complex process has taken place.
Conclusion
The processes involved in completing a payment are quite complex. A payment gateway is only the starting point in this long systematic process.
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