How to Start a Crypto Payment Gateway Like BitPay and NOWPayments
How to Start a Crypto Payment Gateway Like BitPay and NOWPayments
'Crypto payment gateway market at $2.0 billion in 2025, Stablecoins surpassed Visa in transactions, 30,000 merchants worldwide accept bitcoin as a payment.' What are these numbers saying? The growth of cryptocurrency payments and the bright future of crypto payment gateway development. As the cryptocurrency industry is getting stronger day by day, it increases its mainstream adoption. That's why launching a crypto payment gateway is one of the best businesses you can start in 2025. But wait, the crypto industry is still in a lot of confusion with regulations. But there are pioneers in the industry too, like BitPay and NOWPayments. Starting a crypto payment gateway by following their ideology will make the process easier. In this blog, we gonna learn about how to start a crypto payment gateway like BitPay and NowPayments. Let's get started.
What is a Cryptocurrency Payment Gateway
A cryptocurrency payment gateway is a digital solution that lets merchants accept payments in cryptocurrencies like Bitcoin, Ethereum, USDT, or other digital assets. It is just like the crypto version of PayPal or Stripe. Other than handling fiat money like dollars or euros, the gateway processes blockchain-based payments securely. These platforms connect customers who want to pay with crypto and merchants who prefer to receive payments in either crypto or fiat. For example, when a customer pays in Bitcoin, the gateway can instantly convert that Bitcoin into US dollars, reducing the risk of price volatility. It simply makes crypto payments as simple as paying with a debit card.
About BitPay and NOWPayments
Two of the leading names in this industry are BitPay and NOWPayments, and they have set the gold standard for crypto payment processing.
BitPay
BitPay was founded in 2011, making it one of the first companies to enable Bitcoin payments for businesses. Over the years, it has expanded to support multiple cryptocurrencies and has partnerships with big names like Microsoft, Shopify, and Newegg. BitPay also offers prepaid debit cards funded with crypto.
NOWPayments
NOWPayments, on the other hand, is a newer but highly flexible service provider. It launched in 2019 and quickly gained attention by supporting more than 100 cryptocurrencies, with automatic coin conversion. Unlike BitPay, NOWPayments does not require merchants to undergo strict KYC for integration, making it more attractive for small businesses and startups.
Both platforms serve as inspiration for entrepreneurs who want to launch their own crypto payment gateway, like BitPay and NOWPayments.
How a Crypto Payment Gateway Works
A crypto payment gateway works as the middleman between a buyer and a seller, but instead of handling fiat directly, it processes digital currencies. The workflow generally looks like this:
- Customer Checkout – The customer selects a product or service and chooses cryptocurrency as the payment method.
- Invoice Generation – The payment gateway generates a unique wallet address and a QR code for the transaction.
- Payment Transfer – The customer pays in crypto from their wallet to the generated address.
- Transaction Verification – The blockchain confirms the payment, and the gateway validates it.
- Conversion (Optional) – The gateway can instantly convert crypto into fiat to protect the merchant from volatility.
- Settlement – The merchant receives the funds, either in crypto or fiat, in their account.
This process takes only a few seconds to a few minutes, depending on the blockchain used. With layer-2 solutions and fast-processing networks like Polygon or Lightning Network, settlement times are now much quicker than before.
The Features and Benefits of a Crypto Payment Gateway
A well-designed crypto payment gateway offers multiple features that make it useful for both businesses and customers.
Key Features of a Crypto Payment Gateway
Benefits of a Crypto Payment Gateway
How to Develop a Crypto Payment Gateway like BitPay and NOWPayments
As a startup founder, partnering with a Crypto payment gateway development company can simplify this technical and business challenge. Let me note down the step-by-step outline to guide entrepreneurs,
- Market Research – Study existing gateways like BitPay, NOWPayments, and CoinGate. Know what features are most in demand, such as instant conversion, multi-wallet support, or recurring billing.
- Decide Core Features – Choose essential features you want in your gateway, such as multi-crypto support, merchant settlement in fiat, integration APIs, or NFT payments.
- Choose Blockchain Networks – Decide which blockchains your gateway will support. Bitcoin and Ethereum are a must, but supporting stablecoins and fast chains like Polygon or Solana can give you an edge.
- Build the Technical Infrastructure – Wallet System for secure wallet creation, Payment Processor for crypto transfers, Conversion Engine for real-time exchange, Merchant Dashboard for transaction management.
- Compliance & Security – Confirm your gateway complies with local regulations like AML and KYC. Invest in advanced security features like two-factor authentication, encrypted APIs, and fraud monitoring.
- Testing & Pilot Launch – Run a pilot test of the system with a few merchants. Check transaction speed, security, and user experience.
- Scaling & Partnerships – Once stable, scale by integrating with e-commerce platforms, wallet providers, and even traditional banks for fiat settlements.
Choosing a Crypto Payment Gateway Solutions Provider
Building a payment gateway from scratch takes a lot of time and funds. But partnering with a crypto payment gateway solutions provider can save time and money. When choosing a provider, consider customization options, supported cryptocurrencies, compliance, security standards, scalability, and integration support. Some businesses may prefer white-label crypto gateway solutions as they allow faster entry into the market without heavy development costs.
Final Words
Starting a crypto payment gateway like BitPay or NOWPayments is a promising venture in this all-digital economy. With cryptocurrency adoption on the rise, businesses and consumers are looking for secure and fast ways to transact. Build your own solution from scratch or partner with a white-label crypto exchange solutions provider; success will depend on strong security and user-friendly features. Because 'Bitcoin is better than currency... It's a great way of moving money.'
