How CoinGate Stacks Up Against Traditional Options

Payment habits are changing. Shoppers today expect more ways to pay, including cryptocurrencies.

According to our findings, 1 billion people will be using cryptocurrencies by 2026. Even now, nearly one in four crypto users shop online with crypto, and almost 6% use it in person, based on this study. The shift is well underway.

If you run an online store and feel limited by traditional payment processors, you’re not alone. Credit cards and bank transfers still dominate, but they also come with familiar pain points – high fees, chargebacks, and slow international settlements.

That’s why more businesses are expanding their payment mix with cryptocurrency options. Adding crypto payments doesn’t replace your current checkout but enhances it. It gives customers flexibility, lowers costs, speeds up global transactions, and helps your business stay ready for the future.

In this article, we’ll compare CoinGate – a regulated crypto payment gateway – with traditional options like banks, PayPal, and Stripe. You’ll learn:

• Why crypto payment gateways are gaining traction
• How fees, settlements, and chargebacks differ
• The benefits of instant crypto-to-fiat conversion
• What “global reach” really means for online stores
• And where CoinGate stands out from the rest

Let’s dive in and see how cryptocurrencies stack up against traditional payment options.

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Thinking it’s about time to have a crypto payment solution in your business? Sign up for CoinGate.

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1. Fees & Hidden Costs

Let’s start with what every merchant cares about most – fees.

Traditional payment processors like PayPal, Stripe, or banks typically charge 2–4% per transaction. On top of that, there are often hidden costs: foreign exchange markups, gateway fees, and the occasional chargeback loss. For international businesses, those small percentages quickly add up.

CoinGate, on the other hand, offers a starting fee of 1%, which can go lower for high-volume merchants. There are no hidden markups or chargeback costs, and you always know exactly what you’ll pay per transaction. See the detailed pricing. 

That transparency matters. For example, if your store processes €100,000 in monthly sales, even a 2% difference in fees could mean €2,000 in savings – every single month.

Payment Method	Typical Transaction Fee	Hidden FX or Chargeback Fees	Fee Transparency	Volume Discounts
CoinGate	1% or less	❌ None	✅ Yes	✅ Yes
PayPal	~3.4% + €0.35	✅ FX markup + chargebacks	❌ No	⚠️ Limited
Stripe	~2.9% + €0.25	✅ FX markup + chargebacks	⚠️ Partial	⚠️ Limited
Bank Transfers	1–3% + FX	✅ Bank & intermediary fees	❌ No	❌ No

2. Settlement Speed

Even if your business runs smoothly, waiting days for funds to clear can stall growth. Traditional payment processors often take 2–7 business days to settle transactions – especially if they involve cross-border transfers or weekends.

With CoinGate, settlement speed isn’t an issue. Crypto payments settle instantly, giving merchants immediate confirmation and access to funds in their CoinGate account. When withdrawing to fiat – whether EUR, USD, or GBP – payouts are typically completed the next business day.

That speed can make a big difference. Fast settlements mean:

• Better cash flow for reinvesting in operations or inventory.
• Fewer delays when managing international orders.
• No waiting through weekends or bank holidays.

In short: traditional payments move on banking time. CoinGate moves on internet time. Learn more about settlements and withdrawals at CoinGate.

3. Global Reach & Currency Flexibility

Traditional payment methods often struggle to keep up with global business. Card networks, banks, and regional payment systems each have their own rules, currencies, and costly FX layers. Accepting payments from abroad can mean juggling multiple accounts, intermediaries, and long settlement chains.

CoinGate removes those barriers. With one simple integration, your business can accept payments in 15 cryptocurrencies across multiple networks – including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), TRON (TRX), and USD Coin (USDC).

Every transaction can be automatically converted to EUR, USD, or GBP, and withdrawn directly to your bank account. That means your customers pay in the currency they prefer, while you receive funds in the one that fits your books.

For merchants, this flexibility translates into:

• Fewer payment failures from customers in regions without reliable card access.
• Lower FX friction when serving international markets.
• Broader audience reach, including millions of crypto-first buyers.

Where traditional processors depend on old infrastructure, CoinGate helps you operate globally – without extra accounts, intermediaries, or hidden costs. NordVPN is a perfect example – as noted in our case study, NordVPN has served crypto-friendly clients in 176 countries through CoinGate.

4. Chargebacks, Fraud & Security

Ask any online merchant what keeps them up at night, and “chargebacks” will probably make the list.

Traditional payment methods like cards or PayPal allow buyers to dispute transactions long after purchase – even when the product was delivered. Each chargeback costs time, money, and sometimes reputation. Add fraud and stolen card data into the mix, and it’s easy to see why merchants look for safer alternatives.

CoinGate eliminates that problem entirely. All crypto payments are irreversible, confirmed on the blockchain, and traceable in real time. Once a transaction is completed, it cannot be reversed or faked. That means:

• No chargeback disputes or unexpected losses.
• No stolen card or identity fraud.
• Full transparency of payment status on the blockchain.

Security doesn’t stop there. CoinGate operates under strict EU regulatory standards, aligning with DORA, AML, Travel Rule, and other requirements. Every merchant and transaction is handled in a compliant, verified environment – protecting both you and your customers.

5. Customer Base & Conversion

Beyond lower fees and stronger security, crypto payments also attract a new kind of customer – one that traditional payment processors often can’t reach.

Crypto users are typically global, tech-savvy, and high-intent buyers. They value privacy, flexibility, and modern payment options. For many, crypto isn’t just an investment – it’s their preferred way to pay.

By accepting cryptocurrency through CoinGate, merchants tap into a fast-growing audience that traditional systems overlook. It’s a simple way to:

• Expand your reach to customers in regions where card adoption is low.
• Reduce cart abandonment by offering payment options your competitors might not.
• Boost average order value, as crypto buyers tend to spend more per purchase.

CoinGate’s network of over 500 active merchants includes global e-commerce stores, VPN providers, hosting platforms, and digital services – many of which report higher engagement and repeat purchases after enabling crypto payments.

In short: adding crypto payments isn’t just about keeping up – it’s about standing out.

6. Payout Flexibility

Traditional payment systems often stop at the point of sale. Receiving funds is one thing – sending them efficiently is another story.

Bank transfers can take days to arrive, especially across borders. Add intermediary banks, FX fees, and cut-off times, and global payouts quickly become slow and expensive.

CoinGate solves this with Crypto Payouts – a feature that lets merchants send payments worldwide in minutes. Whether you’re paying freelancers, suppliers, affiliates, or partners, you can transfer funds instantly in crypto.

You’ll also get tools built for scale and simplicity:

• Saved payout contacts for frequent recipients.
• CSV bulk uploads to process multiple payments at once.
• API support for automating large or recurring payouts.
• Exportable payout records for clear accounting and reporting.

It’s a faster, cheaper, and more flexible alternative to traditional remittance systems – all from the same CoinGate dashboard you use to accept payments.

7. Integration & Maintenance

Setting up traditional payment systems can feel like running a marathon before the race even begins. Merchant account approvals, compliance checks, paperwork, and ongoing reconciliation all take time and resources – especially if you’re selling internationally.

CoinGate streamlines that entire process. Integration takes minutes, not weeks, thanks to:

• Plugins for popular platforms like WooCommerce, WHMCS, Wix, and PrestaShop.
• A well-documented API for custom-built solutions.
• A sandbox environment for testing before going live (create a test account here).

Once integrated, payments are tracked automatically, and all data can be exported for accounting or tax purposes. There’s no need for manual reconciliation or additional software.

Developers love the flexibility, and finance teams appreciate the clarity. Everything – from payments to payouts – lives in one secure, compliant dashboard.

8. Compliance & Transparency

In payments, trust is everything. Yet traditional systems often operate through layers of intermediaries – acquirers, issuers, banks, and card networks – each taking a fee, adding delay, and making it harder to see what’s really happening behind the scenes.

CoinGate takes a different approach. As a Lithuania-based and EU-regulated company, we operate under strict financial and data protection frameworks, including DORA, GDPR, AML, Travel Rule, and other standards.

That means every transaction is handled transparently, securely, and in full compliance with European regulation. Merchants can:

• Track every payment and withdrawal with complete visibility.
• Access auditable records for accounting or tax reporting.
• Rely on a compliant bridge between traditional finance and the crypto economy.

In short, CoinGate combines the transparency of blockchain with the accountability of a regulated financial institution – something few traditional processors can match.

9. Future-Proofing Payments

The way people pay is changing faster than ever. From digital wallets to stablecoins and Layer 2 networks, global commerce is shifting toward faster, cheaper, and more transparent systems.

Traditional processors are slowly adapting, but their infrastructure wasn’t built for the new era of tokenized, borderless value transfer. CoinGate was.

By accepting crypto payments today, merchants future-proof their business. CoinGate helps companies stay ahead by offering:

• Access to emerging payment rails used by millions of crypto users worldwide.
• Instant crypto-to-fiat conversion, keeping finances simple and compliant.
• Continuous updates as the regulatory and technological landscape evolves.

Whether your customers are early adopters or mainstream shoppers discovering crypto for the first time, CoinGate keeps you ready for what’s next – without losing the reliability of traditional finance.

Why CoinGate Stands Out

When you compare CoinGate with traditional payment options, the difference is clear.

Traditional processors still work – but they’re built for a slower, more fragmented world. They come with high fees, chargebacks, delayed settlements, and limited flexibility for global businesses.

CoinGate, on the other hand, is built for what comes next. It gives merchants:

• Lower, transparent fees starting at 1%
• Near-instant settlements in crypto or next-day fiat withdrawals
• Global reach across 15 cryptocurrencies and multiple fiat currencies
• Regulated compliance under EU standards
• Simple integrations and flexible payout tools

More than 500 merchants already trust CoinGate to power their payments – from e-commerce brands to digital service providers and global platforms.

If you’re ready to expand your payment mix, reach new customers, and simplify your operations, CoinGate is the bridge between traditional finance and the crypto economy you’ve been looking for.

Sign up for CoinGate and start accepting cryptocurrency payments today.