Crypto Payment Gateway
Quick Answer
A crypto payment gateway is software that enables merchants to accept cryptocurrency payments and receive settlement in fiat or stablecoins. It handles wallet connection, exchange-rate conversion, and payout.
Full Definition
A crypto payment gateway is software infrastructure that enables merchants to accept cryptocurrency payments from customers. It handles wallet connection, payment amount calculation, exchange-rate locking, blockchain transaction monitoring, confirmation tracking, and fiat or stablecoin settlement. Unlike traditional payment gateways (Stripe, Adyen), crypto gateways operate on blockchain rails and offer benefits including zero chargebacks, lower fees, instant cross-border settlement, and no intermediary banks. SpacePay is a crypto payment gateway that provides same-day fiat settlement and covers gas fees for customers.
Related Terms
Chargeback
A chargeback is a forced payment reversal initiated by a cardholder's bank. Crypto payments are chargeback-free by design because blockchain transactions are irreversible once confirmed.
Cold Wallet
A cold wallet is cryptocurrency storage not connected to the internet, providing maximum security against hacking. Examples include hardware wallets like Ledger and Trezor.
Confirmation Time
Confirmation time is the duration between a transaction being broadcast and receiving its first block confirmation. It ranges from under 1 second (Solana) to 10 minutes (Bitcoin).
Consensus Mechanism
A consensus mechanism is the protocol by which a blockchain network agrees on the state of the ledger. Common types include Proof of Work (Bitcoin) and Proof of Stake (Ethereum).
Cross-Chain
Cross-chain refers to interoperability between blockchain networks, enabling asset transfers across them. Essential for multi-chain payment gateways that accept payments from any supported chain.
Custodial Wallet
A custodial wallet is a cryptocurrency wallet where a third party holds and manages the private keys on behalf of the user, offering convenience but introducing counterparty risk.