The payment processing industry is expanding, with non-blockchain companies recognising the benefits of incorporating crypto payments. With over 500 million digital currency users globally, accepting crypto assets as a fiat currency substitute is becoming increasingly popular. This article will assess an open-source payment gateway, outlining its benefits and drawbacks.
Why You Should Consider Payment Gateways
The global online payments industry is thriving due to e-commerce growth, with cryptocurrency payments being a key focus. As of 2024, over 15,000 companies worldwide accept virtual assets as payment methods.
Businesses can process cryptocurrency transactions through proprietary systems, payment gateway collaborations, or open-source software. Custom-built solutions are suitable for large organisations, while white-label gateways are affordable for smaller businesses. Open-source gateways have distinct strengths and weaknesses.
Open-Source Crypto Payment Gateways: Benefits And Drawbacks
Open-source crypto payment gateway solutions are free software that can be downloaded by anyone with internet access and basic knowledge of crypto payment gateway APIs. These solutions are provided free of charge to encourage community involvement, attract potential partners, and attract investors. However, the quality of these software can vary significantly.
Open-source gateways offer lower expenses, simplified integration, and faster market entry, depending on the company’s technological capabilities and software interoperability.
However, they may experience poor performance due to payment processing issues, technological problems, and additional third-party services. Additionally, bugs and malfunctions may increase maintenance costs and negatively impact service quality.
Open-source projects are often experimental, making coding difficult and potentially requiring more experienced engineers. Security concerns are another problem, especially on public code-accessible platforms like GitHub, where vulnerabilities may be exposed, requiring additional funding for cybersecurity precautions.
Overall, open-source gateways are an affordable and adaptable choice for companies looking to enter the market quickly.
Final Thoughts
Open-source solutions, despite being affordable, have drawbacks like lack of standardisation, complex technological requirements, and insufficient security measures. They may be more expensive in the long run due to security, maintenance, and technical support costs, while white-label crypto payment gateways may be more cost-effective in the long run.
