Which Altcoin Payment Processor is Suitable for Your Business?

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Cryptocurrencies are undoubtedly a solid payment option for businesses and e-commerce websites, offering a distinct method of transaction that is different from traditional credit cards and online banking.

Paying with crypto coins and tokens is usually faster, preserving your identity and promoting a more transparent process. Businesses and websites are increasingly adopting blockchain payments through a collection of major coins, tokens and altcoins to receive payments for products and services.

However, when you choose an altcoin payment solution for your website, you will encounter various service providers with similar offerings, so which one should you choose? Let’s find the answer by reviewing how processors work and their benefits. 

Understanding Altcoin Processors

Payment processors are bridges that connect your website with the customer’s wallet, facilitating communications between two consoles and releasing funds from the user to your account or crypto wallet.

Users choose from a wide range of virtual currencies, and despite the popularity of BTC and ETH as payment methods, alternative coins have emerged as solid transaction options. For example, Ripple, Solana and Litecoin are a few alternative coins that use a reliable blockchain network and have several use cases.

The altcoin payment gateway is the interface that your customers see on the checkout page when they buy a product or service, which also entails complex procedures in the back end.

When a customer chooses LTC, XRP or SOL, for example, as a crypto payment method, the gateway interacts with their wallet to ensure there are sufficient funds in the selected currency.

The operation then begins by releasing these coins, verifying them on the corresponding blockchain, registering them in the public ledger and releasing the funds to the other party, which is your business wallet or account.

Benefits of Altcoin Payment Gateways

Alternative coins offer transaction power similar to major ones, where you can accept payments quickly and finance settlements faster without involving financial intermediaries and banks. However, less popular coins offer more benefits that empower your payment options.

• Some altcoins are less volatile than major ones because they are less speculative and out of the regulatory and trading spotlight compared to Bitcoin or Ethereum.
• Less crowded blockchains than BTC or ETH, leading to faster processing capabilities.
• Using layer-2 chains and networks that minimise the mainnet blockchain congestion, leading to lower gas fees.
• Many DeFi applications and Web 3.0 platforms use altcoins to operate and transact within their dApps, crypto games and staking investments.

How to Find a Reliable Altcoin Payment Gateway

Locating the right altcoin payment processor is a challenging task amidst the plethora of coins and tokens and the huge number of applications and service providers available. 

Therefore, before finding a suitable processing gateway partner, you need to set your expectations and look for a provider that offers the following features.

Robust Transaction Security

Security is the number one priority for crypto processors and companies, especially when dealing with coins that are newer than established networks like Bitcoin and Ethereum.

However, most alt-coin developers have introduced solid updates that improve network security and transaction safety. Therefore, check out the used blockchain network and security protocols followed by the provider.

Interface Design

Users are more likely to finalise transactions on your website if the layout is clear and the interface is user-friendly. Therefore, ensure the provider offers an intuitive UI design and find out if they implement any custom designs that you can adjust and alter according to your and your customer’s preferences.

Pricing Plans

Altcoin payment processors incur different fee structures, which can vary between an in-advance fixed payment or an ongoing percentage from every transaction conducted using their gateway.

Therefore, check out the pricing options and make sure they align with your budget and expectations.

Technical Support

It is important to find an altcoin gateway provider that offers customer support on different instances (live chat, phone, email), especially if technical issues occur.

These issues can lead to customer’s frustration since it involves their money. So, it is crucial to receive technical aid from the tool’s developers themselves.

Supported Coins & Tokens

Check out the list of supported cryptocurrencies and ensure the provider allows transactions using altcoins that your customers prefer.

Offering a diverse range of payment methods expands your users’ options and lures more clients with different payment preferences to your website.

Settlement Speed

Transaction speed is a crucial factor when a customer decides on the payment method and is the main reason many prefer paying with cryptocurrencies. 

However, network congestions lead to more waiting times. Therefore, investigate the used blockchains by your provider and ensure they use layer-2 chains and other subnet networks that finalise payments faster.

Conclusion

Altcoins are a solid payment option, expanding the user’s payment capability and attracting customers who prefer websites where is Litecoin accepted or where they can spend their SOL coins. 

Additionally, altcoin payment processors add flexibility and customisation to your website, using different blockchains and networks to settle payments, which can be faster and cheaper than using Bitcoin or Ethereum.

*This article was paid for. Cryptonomist did not write the article or test the platform.