// GLOSSARY -- PAYMENTS & FINTECH

What is Payment Gateway?

1 min read Updated

A payment gateway is the technology that securely processes payment transactions between a customer and merchant — in crypto, managing wallet connections, transaction signing, and payment confirmation.

WHY IT MATTERS

Crypto payment gateways handle the technical complexity of accepting blockchain payments. They manage: generating payment addresses, monitoring for incoming transactions, confirming payment (waiting for block confirmations), calculating exchange rates, and notifying merchants.

Modern crypto gateways integrate with e-commerce platforms (Shopify, WooCommerce), provide checkout widgets, and handle multi-chain payments. The goal: make accepting crypto as easy as accepting credit cards.

For AI agents making payments, gateways provide the merchant-side infrastructure — a well-defined API for submitting payments and receiving confirmations.

FREQUENTLY ASKED QUESTIONS

Payment gateway vs payment processor?
Often used interchangeably. Technically, the gateway handles the technical transaction flow; the processor handles the financial settlement. In practice, crypto services typically provide both.
How fast are crypto payment confirmations?
L2 networks (Base, Arbitrum): seconds. Ethereum L1: ~12 seconds for inclusion. Bitcoin: ~10 minutes. Merchants choose their confirmation threshold based on payment size and risk tolerance.
Can gateways handle multiple cryptocurrencies?
Yes. Major gateways accept Bitcoin, Ethereum, stablecoins, and tokens across multiple chains. The merchant typically receives their preferred settlement currency regardless of what the customer pays with.

FURTHER READING

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