Bitcoin is becoming more popular than it has been in a very long while. At this point, even a bear market will not disrupt the adoption and usage of blockchain tokens. Therefore, it is unsurprising that everyone wants to create a medium of transaction involving crypto. However, most individuals and firms do not understand the essentials of cryptocurrency payment gateway development.
Besides, even regular orthodox payment systems require some significant work. How much more completing transactions with decentralized digital wallets? There is so much at stake here, considering how negative news about web3 tends to trend in the media.
Considering the factors involved, any firm looking to develop a payment gateway for cryptocurrency must get it correct. To help startups that intend to do so, this article will outline the components necessary to accomplish this feat. It will also outline how SoftNote managed to accomplish this feat.
Essential Components of a Cryptocurrency Payment Gateway Development
A Bitcoin payment system is not your regular cryptocurrency exchange where people simply transfer blockchain tokens between themselves. This is a platform that facilitates crypto-fiat and fiat-crypto transactions. Therefore, the dynamics for development will be considerably different.
There are several parts that are essential for a successful cryptocurrency payment gateway development. Some of them include those we will outline below:
- Crypto Wallet: This is a secure blockchain wallet that holds the types of cryptocurrencies that the payment gateway will allow people to trade in. It is up to the Bitcoin payment solution provider to determine if they also want to accept crypto like Ethereum, USDT, Litecoin, TET, and so on.
- Fiat Account: The payment service provider also needs liquidity to run the business. Therefore, they must have an account that contains fiat currencies where they can pay people out.
- Merchants: Some crypto payment gateways may choose to work with merchants. This helps to reduce the burden of having very huge liquidity to begin operations. Instead of paying out transactions themselves, the Bitcoin payment solution outsources this duty to merchants.
- External Backend Transaction Portal: The external backend supports incoming or outgoing transactions outside the system. This applies to crypto-fiat or fiat-crypto transfers.
- Internal Backend Transaction Portal: This is the foundation that hods the infrastructure when crypto-crypto transactions take place. For example, users wants to trade his Bitcoin for USDT.
- Frontend Transaction Portal: This is the aspect of the transfers that people can see. Backends are foundation, and frontends are the actual buildings.
- API Connecting Frontend to Backend: Like the name states, this is the interface connecting the frontend to the internal and external backends. Without this API, these different components will be isolated from each other.
- API Connecting Multiple Frontends: This connection is essential for cryptocurrency payment gateway development that will involve e-commerce and other diverse means of transactions. It helps to connect online store plugins to the system.
How Tectum SoftNote Bills Approached Cryptocurrency Payment Gateway Development
So far, we have outlined how the components of conducting a standard crypto payment gateway development. Considering that Tectum SoftNote Bills is a crypto cash and Bitcoin payment system, it is only smart to examine how it works. By outlining how we are able to conduct zero gas fee transactions, Tectum can give insights to budding developers who want to bridge centralized systems with Web3.
To achieve this feat, we created backends to support both internal and external transactions. Our system is built on the Tectum Blockchain (fastest blockchain) and in-house wallet. We also have an API that connects our Bitcoin payment solution to any external system.
We shared the API documentation to enable interested developers to integrate SoftNote into their platforms. The technology is so efficient that it works seamlessly with centralized exchanges, noncustodial wallets, e-commerce stores, POS machines, etc.
Instead of owning the funds for powering transactions, we partially outsource this duty. More so, it is not only merchants that can add liquidity to SoftNote Bills. Anyone who has cryptocurrencies can add them to SoftNote. Two or more friends can pool their crypto together and add it to a bill. This is well in line with the blockchain principles of decentralization.
Everyone who adds liquidity to a SoftNote will get a percentage of the cost of transactions this SoftNote powers. Not to worry, the transaction fees are actually a 1% commission from merchants. So, buyers will still use the SoftNote and pay zero gas fees.
Benefits of Having a Proper Payment Gateway for Bitcoin and Other Cryptocurrencies
There are several benefits of a proper payment gateway that allows people to send and receive cryptocurrencies. For one, it removes all geographical limitations and helps merchants reach even more customers. With this payment solution bridging the gap between crypto and fiat, people will get to experience the best of both worlds. This means the locality of fiat and the scalability of Bitcoin and other cryptocurrencies.