What is CoinGate Bitcoin Payment Processor?
Coingate Bitcoin Payment Processor Payment Processor is a service that allows people to buy and sell bitcoin and other altcoins. It also offers a payment gateway which offers both online and traditional POS (Point of Sale) options. It utilises the services of ShapeShift – a company that offers global trading of digital assets via web and mobile platforms – to facilitate the use of altcoins, including Dash.
Specifically designed as a payment gateway for blockchain payments, CoinGate was started in 2014 in Lithuania, with a specific mission to promote the adoption of cryptocurrencies globally. The service aims to provide a payments infrastructure that is reliable and furnishes the needs of merchants and their customers. CoinGate wants to bridge the gap between cryptocurrency owners who want to use their coins to buy services and goods, and merchants, looking to grow their businesses by leveraging the benefits of blockchain technology – specifically security, privacy, speed and cost effectiveness.
Coingate’s payment methods include bank transfer, international wire, credit or debit cards, and mobile or landline phone payments.
CoinGate, in addition to Bitcoin, supports more than 50 other digital currencies – these include Ethereum, Dash, Zcash, and Dogecoin. In April 2018, it passed the twin milestones of 50,000 registered users and 200,000 payments processed. The application has been featured on Reuters, Bitcoin Magazine, Upwork, and other media outlets.
Enables payments in Cryptocurrency
Coingate enables merchants to accept payments in cryptocurrencies which confers a number of benefits. These include no risk of chargeback fraud, and the ability to accept payments from anywhere, even those deemed high risk and which are normally precluded from traditional bank-based transaction processing.
Cryptocurrencies offer much faster confirmation for received payments, whilst credit card payments can be reversed for up to a month, and, in some circumstances more. There is also no requirement to collect any information about customers, which means the risks associated with customer identity theft – which have become an increasingly common occurrence for many high profile businesses – are eliminated.
Businesses can also accept micropayments – as little as US $0.01.
The processing gateway enables traders to buy and sell Bitcoin, and provides them with a safe and secure environment in which that can undertake trades in the cryptocurrency. For added security, much of the Bitcoins that CoinGate holds is stored offsite in cold storage.
Flexible Merchant API
CoinGate offers merchants a flexible API for those online businesses that want to offer cryptocurrencies as a payment method. The application handles the entire back-end payment flow, from check-out to settlement, which means that businesses can adopt this payment method without having to concern themselves about the risk of FX (foreign exchange) rate fluctuations, or need detailed technical knowledge. This makes it suitable for applications of all sizes, from basic projects, to enterprise-level operations.
Full automation for accepting Bitcoin, Litecoin, Ethereum and other alt coins is offered by their payment gateway, as well as a unique address for each order, and real-time exchange rates for customers that are fully transparent. There is also a platform offered to merchants from which they can track and manage their payment history, and pay-outs.
With CoinGate all prices are updated in real-time, and the application compares the exchange rates offered by multiple exchange platforms in real-time, and selects the best one. This means that customers of the service – merchants, traders and their clients – are charged as low fees as possible.
Extended Payment Options
CoinGate offers merchants a range of extended payment solutions, including Bitcoin POS, widgets, and plug-ins for many popular online shopping carts that means that users can pay for goods and services using a range of cryptocurrencies. In addition, the application offers Bitcoin POS apps for Android and iOS devices.
For merchants, CoinGate offers the advantage of lower costs. Typically credit card companies with charge up to 3% of the transaction amount and other handling charges. By contrast, CoinGate allows merchants to accept Bitcoin payments for a flat charge of 1% of the transaction amount, and there are no associated monthly or processing charges.
CoinGate stipulates that the vast majority of bitcoins that it holds are stored in Cold Storage – a common security precaution to minimise the risk of intruders stealing an entire reserve in a security breach (as has occurred in several high profile cases).
CoinGate is designed to allow payments in Bitcoin – and other digital currencies – to be accepted in any store. Merchants who are selling a product or service through their online or physical store can set a price in the currency of their choice, and then CoinGate will calculate, in real-time, how much bitcoins it is worth, from a range of several bitcoins exchanges. Customers can then pay with Bitcoin or other digital currencies, and merchants will receive the full amount – less a 1% processing fee – in the currency of their choice, directly in their bank account.
Payments in Altcoin are converted instantly top Bitcoin, Euros, or US Dollars.
Although CoinGate is heavily focused on Bitcoin, the platform does support more than 50 other altcoins, meaning that customers can pay for goods and services with a range of digital currencies. These include Litecoin, Dash, Ethereum and Zcash. In addition, it allows payments to be instantly converted to a merchant’s preferred currency, a functionality not offered by other Bitcoin service providers.
CoinGate offers merchants the option of accepting payment in Bitcoin in their retail store with their mobile apps or Web POS (Point of Sale). App for Android and iOS devices allow retailers to accept Bitcoin payments on a mobile device, whilst the web app can be accessed directly from any internet enabled web browser.
CoinGate offers payment buttons which online merchants can add to their websites enabling them to accept payments or donations in more than 50 cryptocurrencies. Three types are offered:
Fixed Price: This allows a single money amount which must be paid when the button is clicked.
Slider: This allows a merchant to set minimum and maximum amounts. Clicking the button launches the slider which the user can then utilise to choose the amount that they wish to pay.
List: This button allows a merchant to set several differing amounts. When the button is clicked, the user can choose the amount they want to pay from the options listed in vertical order.
Users have the option to fully customise payment buttons by adding a title and description, adding their company logo and background picture. They can collect information as to who has paid them by setting up customer information fields which need to be completed by the client when making payment. Merchants can also receive email notification each time that they receive a payment via one of these buttons.
CoinGate offers merchants the option to promote the use of Bitcoin with a range of logos and stickers enabling them to advertise the fact that they accept cryptocurrency as a form of payment. These include a “Bitcoin accepted here” which can be added to a merchant’s website, or stickers which bricks and mortar businesses can display on counters, cash registers, on entrance doors, and other places throughout their store. They also have the option of adding their business to Coinmap – an interactive map covering the entire world which displays those merchants that accept Bitcoin.
Lightning Network Payment Processing
Lightning Network is a new technological innovation pioneered by CoinGate which aims to address one of the major limitations of Bitcoin – its scalability – and to make transaction processing faster and more efficient. After a successful trial period, Coingate has recently launched this feature across its platform.
The innovation lying at the heart of Lightning Network is the fact that it connects users – or nodes – in a web of “payment channels” that operate independently of the main Bitcoin network. This means that transactions can be made through this channel “off-chain” (thus by-passing the Bitcoin scalability issue). Lightning Network extends the benefits and use cases of Bitcoin to include high-frequency and real-time trading without the need to store funds in a third-party exchange first, as well as the ability to accept and process high-volume micro transactions.
Whilst CoinGate accepts that Lightning Network is still in its infancy, and is currently more suited for Bitcoin enthusiasts and advanced users, there is an extensive network of developers engaged in making it more accessible to a wider merchant and trader community.
Token Sale and ICO Payment Processing
For those looking to launch an ICO (Initial Coin Offering) or token sale, CoinGate offers them a simple way to collect payments, with an easy integration for processing Bitcoin and other popular digital currencies. The vendor sources their rates, in real-time, from different exchanges and there are no hidden fees or undisclosed customer mark-ups.
Payments can be accepted in more than 50 digital currencies, which can be converted to Euros in real-time. The exchange rate is fixed, safeguarding users against the risk of crypto price volatility. Transfers can be made daily – or weekly – to a company bank account directly, at no cost.
Through a single integration, over 50 different cryptocurrencies can be collected for an ICO, and these can be automatically converted to Bitcoin at current mark rates. Pay-outs will be made to a user’s Bitcoin wallet.
CoinGate offers two pricing structures.
Merchants are charged a flat 1% processing fee, with no set-up or recurring fees. No fees are charged to shoppers, and free SEPA (Single Euro Payments Area) and Bitcoin pay-outs are offered.
Traders who want to buy or sell cryptocurrencies are charged a flat 3% buying and selling fee. They can trade without depositing funds with CoinGate initially and can buy or sell directly to or from their digital wallet. They are also able to exchange fiat to cryptocurrencies, and vice versa. Users can earn up to 1% in referral earnings. It should be noted, however, that there are a number of other applicable charges. For example, buying currencies with either a credit or debit card incurs a 5% fee on top of the trader fee, as does QQPay or via a direct transfer from an Asia bank account. Similarly, making a purchase using either Neteller or Skrill incurs a 3% additional fee.
In addition, CoinGate offers a payment infrastructure for enterprise-grade projects and PSPs (Payment Service Providers). Interested parties should contact the supplier directly for more details.
Coingate is a cloud-hosted web-based platform that supports Windows and Mac operating systems. The application offers Bitcoin POS apps for Android and iOS devices. These provide customers with an efficient and effective mobile shopping experience, whilst businesses benefit from faster and safer payment processing.
The application enables business owners to accept cryptocurrencies as a method of payment, using either their API or API=based e-commerce modules. Irrespective of which currency a customer pays with, settlement is either in Bitcoin or Euros. This offers flexibility for the buyer, and convenience and certainty for the seller.
It is relatively straightforward to configure the CoinGate API to process payments on nearly every website. Merchants can create their API credentials from their CoinGate account, and, based on their preferred option for receiving settlements, they can add their pay-out details. Users have the option to test their API integration through their Sandbox environment, or directly in live mode.
The gateway offers a number of plugins for popular shopping carts, including WooCommerce, Magento, PrestaShop, and OpenCart, enabling merchants to accept payments in Bitcoins and other Altcoins.
For added security, it is recommended that uses set-up 2-factor (2FA) authentication on their CoinGate account, via the use of Google Authenticator.
CoinGate publishes their uptime statistics on their website, as well as their response time per country.
Direct Support is primarily available through an online ticketing system – users should complete the embedded form on their website to submit a query to the vendor.
In addition, Enterprise customers are offered a dedicated account manager and are entitled to priority customer support.
CoinGate can also be contacted via social media – Facebook, Twitter, and LinkedIn.
Self-service functionality is limited and confined to a CoinGate Shop Demo, FAQs, and a blog which is updated with new posts weekly.
The vendor appears regularly at tech conferences and cryptocurrency events.