What is a fiat payment gateway?

06 Mar 2023

According to statistics in June 2021, the total value of card payment transactions at POS and via Napas e-wallets increased by 50% and 125%, respectively.

Online purchases are thriving to an inconceivable extent, and it seems like every e-commerce platform provides online payment as a standard feature. From a buyer's perspective, online shopping enables them to buy products and services from the comfort of their own homes. As long as there is an internet connection, a merchant can sell stuff to anyone, anywhere, at any time. 

A Fiat payment gateway is a platform that allows users to make payments using traditional, government-issued currencies, also known as "fiat" currencies. This is in contrast to cryptocurrency payment gateways, which enable transactions using digital currencies like Bitcoin or Ethereum.

A Fiat payment gateway typically involves a third-party service provider that acts as an intermediary between the customer and the merchant. The customer inputs their payment information, such as credit card details, and the payment gateway securely processes the transaction and transfers the funds to the merchant's account.

Fiat payment gateways are commonly used for online purchases, such as e-commerce transactions, but can also be used for in-person purchases at physical retail locations. Examples of popular Fiat payment gateways include PayPal, Stripe, and Square.

The fiat payment gateway is a vital component of an electronic payment processing system because it is a back-end technology (designing and building interfaces for web pages) in charge of sending customer information to the transaction processing bank.

It is a tunnel that connects your bank account to the platform where you want to transfer money. Besides this conventional method, direct payment gateways have recently begun accepting mobile payments using blockchain payment technology. Blockchain payment processing companies allow you to conduct blockchain transactions using various methods.

All blockchain payment gateways must comply with global KYC and AML regulations to verify customer identity. If a blockchain payment processor fails to do it, it may incur fines. To withdraw funds, you must present government-issued identification documents. For further information, please visit PayCEC Frequently Asked Questions on fiat and cryptocurrency payment gateway.

Read more:

• Crypto payment gateway
• Fiat to crypto payment gateway