How Much Will It Cost to Develop a Payment Gateway Like BitPay for Cryptocurrencies

Platforms like BitPay are making the purchase, acceptance and processing of cryptocurrency transactions easier for individuals as well as businesses. If you are planning to develop a similar gateway platform, pricing must be one of your very important concerns.

The below blog will help you to clear your concern. It will talk about important concepts related to Crypto Payment Gateway, and its cost. Without any further ado, let’s start with the concepts.

Overview of Crypto Payment gateway

A cryptocurrency payment gateway is a digital platform that allows the users to accept and process multiple cryptocurrency in the payment mode. You can consider it a mediator between merchants and customers who also ensure that the transactions remain fast and secure.

Businesses need crypto payment gateways for global transactions, low transaction fees, and fraud prevention. There are several payment gateways where BitPay is one of the most popular platforms. The app has more than 1 million downloads and thousands of reviews on the Google Play Store.

How does a Crypto Payment Platform work?

For going deeper into the cryptocurrency payment gateways, it is important to understand how crypto currencies work.

Unlike the traditional currencies, nobody controls the crypto currencies. They operate on blockchain technology, which is a highly decentralized ledger system that records transactions across several systems.

Here is how cryptocurrencies work:

• Every user has a digital wallet that has private and public keys.
• Public keys are addresses for receiving payments, whereas private keys are for ensuring secure access to the funds.
• Transactions are validated by a network of nodes instead of a centralized entity.
• Every transaction is grouped into a block, which is verified by the previous transactions.

For a better understanding, imagine that you are a customer who wants to buy a product with a cost of $100 Bitcoins. The buyer will transfer the amount to the wallet of the merchant, where payment gateways process the transactions. And the whole process is very quick, transparent and secure.

Current Market State of Blockchain Technology

Platforms like BitPay processes a million transactions throughout the world, which gives merchants a secure, fast, and cost-effective solution.

The report from MarketsandMarkets shares the predictions on the global blockchain market size, which is projected to grow at a rate of 65.5% annually. The market size is going to change from around $20.1 billion in 2024 to $248.9 billion by 2029.

With this much anticipation, demand, and potential from Cryptocurrency Payment Gateway, investing in building such a platform will surely keep you at the top of the market.

Key Features to Add in a Cryptocurrency Payment Gateway

Before heading to the core of the article, you should also have a good understanding about the key features in a payment gateway like BitPay.

• Multi-Currency Support: For supporting major cryptocurrencies like Bitcoin, Ethereum, Litecoin, and others.
• Secure Transactions: Your payment gateway must be secured with end-to-end encryption and secure protocols like HTTPS and TLS.
• Wallet Integration: The users must be able to link their external wallets or create new ones on one platform.
• Real-Time Exchange Rates: With a live crypto to fiat conversion, you can give transparent transactions.
• User-Friendly Interface: Gives you a simplified design for both merchants and customers.
• API for Merchant Integration: It gives you seamless integration with multiple gateways.
• Fraud Detection Mechanisms: This is for identifying suspicious activities and improving security.

It is also important to note that the more complex you make the above-mentioned features, the more your cost increases.

Factors Influencing the Payment Gateway development costs

There are some essential factors that directly affect the cost of a cryptocurrency payment gateway. You must be updated with these factors.

Development Team

When you hire a crypto payment gateway development company, you work with multiple team members. These comprise of:

• Blockchain Developers
• UI/UX Designers
• Backend Developers
• Quality Assurance Engineers
• Project Managers

Hourly rates for blockchain developers fall somewhere between $50 and $120, varying depending on the expertise and location.

Features and Complexity

As you increase your features, the overall cost also increases. For example:

• Basic functionalities like wallets and crypto transactions might cost you $50,000-$80,000.
• The advanced features, like multi-currency real-time exchange rates, cost you $100,000-$150,000.

Blockchain Platform

The choice of blockchain platforms like Ethereum, Binance Smart Chain, etc. also affects the cost. It is because some blockchains require additional fees for deploying and running the smart contracts.

Security Protocols

Some security measures are very high quality, like advanced two-factor authentication, encryption, or fraud detection systems. These are non-negotiable elements that are added to your development costs.

Regulatory Compliance

Applying the AML/KYC frameworks demands some additional development time and legal consultations. And all these add to the final budget.

Maintenance and Updates

If you also want servers from your blockchain development company after the launch, you can add up to 15% of the development cost.

BitPay Like Payment Gateway Development Costs Estimation

Based on industry standards, here is a detailed table to help to estimate the cost of developing the payment gateway for your cryptocurrency platform.

How to Reduce Development Costs?

Although the product is important for every business, prices are also as crucial as the product. So, here are some strategies to optimize your budget.

• Start Small: Launch with basic features and gradually add advanced functionality as the platform grows.
• Use Open-Source Solutions: Some blockchain platforms give you open-source tools that can reduce development time and costs.
• Outsource Development: Partnering with offshore teams or a blockchain app development company from cost-effective regions can lower expenses.

Future Trends in Cryptocurrency Payment Gateways

Before we wrap up the blog, how about taking a quick look at the future trends in the crypto payment gateway space? Key trends include:

• Integration with decentralized finance (DeFi) platforms
• Use of layer-2 scaling solutions like the Lightning Network for faster and cheaper transactions.
• Increased adoption of stablecoins for reduced volatility.

When you are keeping these trends in mind, you stay sustainable in the market, which is also important for the longevity of your platform.

Work with An Experienced Blockchain Development Services Provider

When you keep costs in mind, do not forget about the development partner. Choose a company that has a separate and dedicated blockchain development service. They will help you build a highly custom solution right from the design to deployment.

NetSet Software has dedicated experts, with experience in over 40 blockchain protocols. The team can provide you with a Custom blockchain solution that perfectly meets your business needs. 

Final Words

It might sound tough to build a cryptocurrency gateway like BitPay, but it is surely a rewarding process. You do not have to leave the idea because of cost because the growing demand for crypto payment solutions will balance it.

However, do not ignore partnering with a reliable blockchain software development company who promises you to give a solid digital solution.