Cryptocurrency payment gateways are imperative solutions for making prompt, secure, and cross-border payments in cryptocurrencies like Bitcoin, Ethereum, and stablecoins. These solutions offer numerous benefits, including instant settlement, reduced fees, and chargeback elimination. The demand for crypto payment gateways is growing, so business owners consider the creation of such a solution a sound business venture in 2025.
The development of a payment gateway cryptocurrency solution involves selecting supported blockchains, regulatory compliance, and designing seamless e-commerce integration. In this article, we will consider all the details of how to build a crypto payment gateway, why to create it, and how Peiko can help with it.
What is a cryptocurrency payment gateway?
A payment gateway cryptocurrency solution is a software that allows businesses to accept payments in crypto from customers, just like they would accept payments with a traditional credit card processor. Instead of processing dollars or euros, it processes blockchain-based payments with digital currencies like Bitcoin, Ethereum, USDT, and others.
The crypto payment gateway’s system acts as a secure middleman, facilitating the transaction by:
- Creating a unique wallet address and transaction ID for every payment,
- Monitoring the blockchain for payment confirmation,
- Verifying the payment once it has been given a number of confirmations,
- Transferring the funds—in crypto or converted to fiat currency—into the business’s account.
Modern crypto gateways like Coinbase Commerce or BitPay do even more than simple wallet transfers. They offer:
- Instant currency exchange, protecting businesses from crypto price volatility.
- Regulatory compliance features, including KYC and AML integration.
- Out-of-the-box integrations with popular e-commerce platforms such as Shopify, WooCommerce, and Magento.
- Multi-chain support for well-known blockchains like Ethereum, BNB Chain, and Solana.
- Custodial or non-custodial designs, with flexibility for businesses in how they are funded.
The crypto payment gateway market value is projected to grow to $5.4 billion by 2031, which highlights the business demand for faster and more efficient payment alternatives.
How cryptocurrencies payment gateways work
Modern crypto payment gateways facilitate online payments between customers and businesses. Below, we describe how they typically operate, step by step:
Step 1. Payment initiation
At checkout, the customer selects cryptocurrency as the payment method. The gateway generates a unique wallet address or QR code, together with the exact amount to pay in the selected digital currency.
Step 2. Blockchain verification
When the payment is sent by the customer, the transaction is forwarded to the blockchain network for confirmation. This validates the authenticity of the funds and executes the payment safely.
Step 3. Transaction confirmation
After the required number of confirmations (varies by blockchain), the payment is considered successful. Both the customer and merchant are notified in real time by most gateways.
Step 4. Currency conversion (Optional)
Automatic conversion to fiat (e.g., USD, EUR) or stablecoins is offered by certain gateways to protect against price volatility. This may be accomplished instantly or postponed based on merchant needs.
Step 5. Funds sending
The settlements of funds depend on the type of gateway:
- Custodial gateways hold funds temporarily and transfer them to the merchant’s account or wallet.
- Non-custodial gateways transfer the crypto straight to the merchant’s designated wallet.
Step 6. Transaction recording and tracking
All transactions are recorded on the blockchain and in the gateway dashboard. Comprehensive logs, payment status, and settlement history are available to the merchants for accounting and auditing.
Benefits of using a crypto payment gateway
Having a cryptocurrency payment platform provides many benefits to companies, especially since digital money is becoming widely used. Some of the key benefits are:
Smaller transaction fees
Traditional payment systems involve very high fees for transactions, especially foreign transactions. For a crypto payment gateway, companies typically pay lower processing fees, keeping more profit per transaction.
Quicker transactions
In contrast to bank transfers that can take days, crypto payments usually take minutes. Such high rates of speed in transactions ensure businesses receive payments quickly, thereby improving cash flow and minimizing delays.
Global reach
As a global asset, cryptocurrency enables businesses to make and receive payments from anywhere in the world without high foreign charges. This is why crypto payments attract such a large audience.
Greater security and reduced risk of fraud
Blockchain technology makes cryptocurrency transactions highly secure, so they cannot be tampered with and are resistant to fraud. Once a transaction is complete, it becomes immutable, significantly minimizing the likelihood of fraud or chargeback claims.
Increased customer convenience
The availability of crypto payment facilities improves convenience and flexibility for customers and enhances their shopping experience. This would be of particular appeal to tech-savvy consumers who prefer to make use of digital currencies.
The absence of chargebacks
Chargebacks form a large part of the bother of using traditional payment systems. Since transactions in cryptocurrency cannot be reversed, businesses are exempt from the risk of chargebacks, which saves them both money and time spent on disputes.
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Key features of a robust crypto payment gateway
A proper crypto payment gateway includes a series of features designed to simplify, secure, and maximize the transaction experience for businesses and their consumers.
Want to build a custom or white label crypto payment gateway? Below are the most important features that guarantee a crypto payment gateway will be truly effective:
Multiple cryptocurrency support
A proper payment gateway crypto solution should accommodate a wide variety of cryptocurrencies, such as Bitcoin, Ethereum, and popular stablecoins like USDT. Such accommodation allows businesses to accommodate customers with different digital currencies, thereby increasing their list of accepted payments.
Instant fiat or stablecoin conversion
To protect businesses from the volatility traditionally associated with cryptocurrencies, the majority of payment processors offer auto-conversion of crypto payments into fiat currencies (USD, EUR) or stablecoins.
Intuitive interface
A robust gateway should also possess a clean, intuitive user interface that is straightforward for both merchants and customers to use. From payment time to integration with online store platforms like Shopify or WooCommerce, simplicity and ease of use should be emphasized so that transactions can proceed smoothly.
Advanced security and data encryption
Security is paramount when handling financial transactions. The ideal crypto payment gateway must employ top-tier encryption algorithms, two-factor authentication (2FA), and secure wallet integrations for protecting user data and guarding against unauthorized attacks.
Adherence to regulatory standards
For regulated industries, the payment gateway should have built-in compliance features like Know Your Customer (KYC) and Anti-Money Laundering (AML) functionality. They enable the gateway to be compliant with the law and, at the same time, provide a secure and safe business and client environment.
Multi-blockchain network support
A crypto payment gateway that is multi-functional needs to be compatible across various blockchain platforms, such as Ethereum, Solana, and Binance Smart Chain. This enables merchants to accept payments from a broad range of crypto platforms, so the site would be more global and accessible.
High-level customer support
A premium crypto payment gateway needs 24/7 support to make sure that all issues are addressed as early as possible, so that business and customers can experience the minimum amount of downtime.
Steps to develop the best cryptocurrency payment gateway
Creating a cryptocurrency payment gateway requires technical expertise and careful planning to enable secure, seamless transactions. At Peiko, we can help you develop secure, intuitive, and scalable crypto payment gateways. How do we implement such solutions? Below are the main steps we recommend following:
1. Research market needs and regulatory compliance
Before diving into cryptocurrency payment gateway development, conduct proper market research. Be aware of what cryptocurrencies are most utilized by your target market, along with geographic location and payment method preferences.
Furthermore, compliance with relevant regulations, including KYC and AML, is vital as these are necessary to process financial transactions in a legal fashion.
2. Select a payment gateway model (custodial or non-custodial)
Next, decide whether you want to build a custodial or non-custodial solution. A custodial gateway stores funds on behalf of the merchant or customer, while a non-custodial gateway allows users to store their crypto assets in their own wallets. The choice affects the architecture, security, and risk management of your platform.
3. Integrate blockchain networks and wallet solutions
Developing a crypto payment gateway will require integration with popular blockchain networks like Bitcoin (BTC), Ethereum (ETH), Binance Smart Chain (BSC), or Solana (SOL). This will involve coding wallet APIs and processing transactions on different blockchain networks.
You will have to choose which one or more blockchain protocols to integrate based on your target market. The wallet integration will also have to support both hot wallets (for day-to-day transactions) and cold wallets (for storage of funds securely).
4. Implement transaction APIs and payment features
The next step is to develop the core payment functionalities. You’ll need transaction APIs to initiate, monitor, and finalize payments. A robust crypto payment gateway should provide features like real-time exchange rate calculation, allowing users to convert cryptocurrency to local fiat currencies or stablecoins. Additionally, support for multi-currency transactions helps reduce volatility risks for merchants.
5. Strengthen security protocols
Implement SSL encryption to secure all data transmissions, and ensure that the gateway is two-factor authentication compatible to secure users’ accounts. Investigate implementing multi-signature wallet solutions as an added layer of security that requires multiple private keys to approve a transaction. Implementing HSMs (Hardware Security Modules) can also secure sensitive cryptographic operations.
6. Develop eCommerce integration tools
For smooth adoption, ensure that your payment gateway for cryptocurrency provides simple integration with popular eCommerce platforms like Shopify, WooCommerce, and Magento.
Provide APIs, SDKs, or pre-built plugins to allow merchants to integrate cryptocurrency payment solutions into their online stores easily. This integration should include automated transaction processing, invoicing, and payment notification in real time.
7. Test, conduct security audits, and do a beta launch
Once the core features are developed, conduct rigorous testing. This includes load testing to see whether the system will hold up under a high volume of transactions, penetration testing to find weaknesses, and security audits to ensure that cryptographic protocols are implemented correctly. Consider a beta launch to receive feedback from users and work out issues before going live.
8. Deploy and monitor
After testing and ensuring everything is functioning correctly, deploy your crypto payment gateway. However, the crypto payment gateway development process doesn’t stop there. Continuous monitoring of transactions, wallet balances, and security protocols is essential to ensure the system remains secure, efficient, and up-to-date with the latest blockchain upgrades.
Average payment gateway development cost
The price of developing a crypto payment gateway solution will differ based on a number of variables such as the platform’s complexity, the cryptocurrencies that will be supported, integration with a wallet, and others.
The price will usually fall between $30,000 and $150,000 or even more, depending on whether you’re using your internal development team or outsourcing to third-party organizations.
Other costs to plan for are security audits, server hardware, regulatory updates, and maintenance. Merging with electronic commerce environments and blockchain networks can also add to the overall payment gateway development cost.
While there will be a costly upfront price, the long-term benefits—lower transaction fees and exposure to a global marketplace—make it a worthwhile expense for firms.
Legal requirements and compliance for crypto gateways in 2025
As the use of cryptocurrencies increases, crypto payment gateways must keep up with evolving rules in 2025. Key legal characteristics are:
AML and KYC compliance
Crypto payment gateways should have Anti-Money Laundering and Know Your Customer policies to prevent criminal activities. They must be compliant with the same in the majority of nations, and there is a penalty for non-compliance.
Requirements for licensing
Depending on the jurisdiction, a crypto currency payment gateway may need to hold specific licenses to operate, including:
- Money Transmitter License (USA),
- Electronic Money Institution (EMI) License (EU),
- Virtual Asset Service Provider (VASP) License (Hong Kong, Singapore).
Cross-border compliance
Being international means conforming to the laws of different nations. Global guidelines, such as those established by the Financial Action Task Force (FATF), track cross-border crypto transactions and enforce cross-border conformity to anti-money laundering programs.
Data privacy laws
Crypto payment platforms must comply with data protection laws like GDPR in Europe and similar laws in other regions, offering protection for customer information.
Tax reporting
Tax laws for crypto payments are being enforced increasingly in countries. The transactions must be reported to tax authorities, guidelines varying according to the regulations of each country.
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Main applications of crypto payments for businesses
Custom crypto gateway development provides numerous advantages to businesses, enabling secure and quick transactions in numerous sectors. A few significant use cases of crypto payment gateways include:
- E-commerce. Accepting crypto allows startups and established businesses to access a worldwide pool of consumers with lower transaction fees, especially for international sales.
- International transactions. Crypto transactions don’t need currency exchange, thus enabling cross-border transactions to be quicker and less expensive.
- Subscription services. Businesses that operate on a subscription model (like software-as-a-service) can expand their clientele by introducing cryptocurrency as a payment option.
- Retail payments. Physical retail stores can integrate crypto payment options into their point-of-sale terminals, offering customers a safe, easy, and futuristic way to pay.
- Charity and crowdfunding. Cryptocurrency donations are becoming popular in the charity sector because they offer transparency and low processing fees.
By adopting cryptocurrency payment providers, businesses can streamline their operations, reduce their costs, and tap into new markets.
The next era of crypto payments: Future trends to watch
The crypto currency payment gateway space is evolving rapidly. Newer trends are transforming the manner in which firms deal with payments. So, which trends can we expect in the coming years?
AI-based fraud detection
Artificial intelligence and machine learning algorithms are becoming integral to detecting fraud-based transactions in real time. Analyzing patterns of transactions, these systems have the capability to identify suspicious behavior, and help businesses safeguard their crypto payment mechanisms.
Example: Chainalysis’ AI system allegedly detects 95% of fraudulent transactions and was adopted by large payment provider BitPay in 2024 to enhance transaction monitoring.
Decentralized identity verification (DID)
In response to growing privacy concerns, decentralized identity technologies are gaining momentum. Decentralized technology places control of user information in the hands of users, allowing secure KYC verification without disclosing sensitive information, while ensuring compliance and preserving privacy. DID is expected to be mainstream by 2027.
Example: In 2023, Microsoft integrated decentralized identity solutions based on the ION network (built on Bitcoin). Thus, Microsoft allows users to manage their digital identities securely and privately across multiple services.
Tokenization of real-world assets (RWAs)
Crypto payment gateways are expanding their functionality to support tokenized real-world assets, such as property or luxury products. It allows businesses to receive payments backed by valuable assets, which makes expensive items accessible for fractional ownership and more favorable payment conditions.
Example: In 2024, ANZ Bank collaborated with Chainlink to allow cross-chain settlement of tokenized assets, making it possible for real-world asset transactions using blockchain-based payment networks.
Cross-platform solutions
New payment gateways are also turning their attention to creating cross-platform solutions that enable businesses to accept payments in cryptocurrencies on multiple channels: mobile applications, brick-and-mortar stores, and websites. This provides customers with an uninterrupted experience, regardless of where and how they wish to make payments.
Example: Flexa (a payment network for cryptocurrencies) has enabled brands like Regal Cinemas and Nordstrom to process crypto payments online and offline using a single interface since 2023.
Sustainable crypto solutions
As environmental concern grows, some payment gateways are beginning to utilize more eco-friendly blockchain technologies like proof-of-stake (PoS). This allows businesses to reduce their carbon footprint while still enjoying secure, efficient crypto transactions.
Example: Alchemy Pay integrated the Avalanche blockchain in 2024 due to its PoS-based structure and lower energy consumption, complementing its retailing partners’ sustainability efforts.
Develop or integrate crypto payment gateways with Peiko easily
At Peiko, we are experts in developing custom crypto payment solutions and implementing payment gateway integrations into applications.
If you need a complete cryptocurrency payment processing system or want to implement existing payment methods, we can provide an adjusted solution for your requirements.
One of the projects with a secure payment gateway is Poof Marketplace, a trailblazing platform for the Canadian CBD industry.
The main services we provided are the following:
- Payment gateway integration. Fully integrated secure payment gateways like SkyFlow and Moneris facilitate hassle-free payments.
- Custom API development. Re-architected APIs for scalability and long-term growth.
- UI/UX redesign. Total redesign to enhance user experience and enable hassle-free payments.
With our expertise, we ensure seamless integration, security, and customer satisfaction, enabling businesses to make payments easily and securely.
Conclusion
Crypto payment gateways are changing the way companies accept payments, providing speedier transactions, reduced fees, borderless access, and improved security. From e-commerce to retailing, sectors globally are adopting crypto to future-proof their payment system.
Establishing a crypto payment platform entails business analysis, safe blockchain integration, KYC/AML adherence, multi-currency support, and UI/UX development. It’s quite a challenging journey from the tech side, but with an experienced blockchain and software development partner, it’s a smooth ride.
Want to build your own crypto payment gateway? At Peiko, we help businesses design and deploy custom crypto payment solutions that fit your needs. Contact us today to build your own secure, high-scalability crypto payments gateway.
