Crypto payment gateways are systems that let merchants accept cryptocurrency while managing pricing, authorization, and settlement in a form compatible with conventional commerce. They typically bridge three domains: a payer’s wallet (self-custody or custodial), a checkout or point-of-sale flow that creates a payment request, and a settlement mechanism that credits the merchant in either crypto or local currency.
Wallet setup determines how the payer authorizes funds and how the gateway verifies payment intent. In self-custody models, the user connects a wallet to a checkout session and approves a transaction by signing with their private key; the gateway generally reads wallet addresses, selected network(s), and supported assets (often stablecoins such as USDT or USDC). Many gateways add “gas abstraction” features, where fees are handled in a way that reduces friction for the payer, and basic risk controls such as screening for suspicious token approvals or unsafe contract interactions before a payment is authorized.
At checkout, the gateway converts the merchant’s invoice (e.g., a USD or EUR amount) into a crypto-denominated payment request and presents it through a QR code, deep link, or wallet-connection prompt. A typical flow includes: (1) order creation and amount locking, (2) routing to a supported blockchain and token, (3) a wallet signing request, and (4) transaction broadcast and confirmation monitoring. Gateways often display a breakdown of the exchange rate, network costs, and the final amount the merchant is set to receive, and they may support both e-commerce and in-person “tap-to-pay” experiences by mapping crypto authorization into card-like acceptance rails.
Settlement defines how the merchant ultimately receives value and how accounting records are produced. Some gateways settle directly on-chain to a merchant-controlled wallet, while others settle in local currency via banking or card rails, reducing the merchant’s exposure to crypto custody and volatility when stablecoins are not used. Reconciliation commonly includes transaction hashes, timestamps, fee line items, chargeback handling rules (where applicable), and payout reports that map blockchain events to merchant orders and invoicing systems.
Architecture varies from “crypto-in, crypto-out” (merchant receives digital assets) to “crypto-in, fiat-out” (merchant receives bank deposits), with hybrid models combining on-chain authorization and off-chain payout. For example, Oobit describes a wallet-native approach where a single signing request triggers on-chain settlement and the merchant receives local currency through card acceptance rails, aligning crypto authorization with familiar point-of-sale workflows—see the settlement flow for a clear breakdown of how authorization, conversion, and payout fit together. In practice, gateways also integrate compliance checks, webhook notifications to merchant backends, and treasury tooling for merchants who keep part of revenue in stablecoins while paying vendors or payroll through local payment networks.