Crypto Gateway: The New Era of Borderless Transactions

1. What is a Crypto Gateway?

A Crypto Gateway is a digital payment gateway that enables businesses to accept and process cryptocurrency transactions in real time. Much like traditional payment gateways (e.g., Visa or Mastercard), a crypto gateway bridges merchants with blockchain networks—handling payments for goods, services, or deposits.

These platforms simplify complex blockchain interactions, offering built-in tools for transaction monitoring, regulatory compliance, fiat conversion, and risk management. They're especially critical in high-growth sectors like e-commerce, digital services, Travel ,tourism and high-risk verticals.

2. Market Research

Market Size & Growth

The global crypto payments market was valued at over $15 billion in 2023, with forecasts projecting it to reach $60 billion by 2030—driven by increased Web3 adoption, borderless commerce, and growing demand for low-fee, real-time settlement.

Crypto ownership and usage are also rapidly expanding:

• Global adoption grew from 583 million to 659 million users in 2024—a 13% year-over-year increase Source: Crypto.com

• In the United States, over 50 million adults own crypto, with nearly 39% having used it for payments Sources: CryptoNews

Post-Election Surge in Adoption

Following the November 2024 U.S. presidential election, in which Donald Trump ran on a pro-crypto platform, the crypto ecosystem saw a significant uptick in participation:

• Binance reported over $7 billion in inflows in the days after the election Source: CryptoSlate

• Bitget saw a 683% increase in Gen Z users, from approximately 110,000 in October to 844,000 in November.

• Crypto.com attributed Bitcoin adoption growth to “President-elect Donald Trump’s pro-crypto policies” Source: Crypto.com

This surge brought tens of millions of new users into the crypto ecosystem—many of whom are now actively seeking ways to utilize their digital assets for payments, deposits, and commerce.

Key Use Cases

• E-commerce and online services

• Deposits in trading platforms, casinos, and betting

• Travel and tourism

• Real estate

• Donations and NGOs

• Subscription billing and SaaS models

3. Market Trends

• Stablecoins Lead: Over 75% of crypto payments use stablecoins like USDT, USDC, and DAI for faster, stable settlement Source: CoinGate

• Layer-2 Scaling: Networks like Arbitrum, Optimism, and Polygon are growing due to reduced gas fees and faster throughput

• B2B Adoption: Enterprises in Forex, e-learning, and marketplaces are integrating crypto to streamline cross-border deposits

• Demand for Self-Custody: Following events like FTX’s collapse, businesses increasingly prefer self-custodial gateways to retain fund control, avoid regulatory complexity, and improve security

4. Challenges

Travel Rule Compliance

The FATF Travel Rule mandates that Virtual Asset Service Providers (VASPs) share customer information on both sides of a transaction. Implementing this at scale, across borders, while respecting privacy, is a major technical and regulatory challenge.

Regulatory Complexity

Global crypto regulation varies by jurisdiction. Maintaining a compliant solution means dynamically adjusting for KYC, AML, blacklists, and licensing requirements per region.

Custodial Limitations

Traditional custodial gateways hold merchant funds in pooled wallets, exposing businesses to shared security risks, regulatory pressure, and legal liabilities. This model reduces trust, limits transparency, and often delays access to funds. Increasingly, businesses are seeking non-custodial solutions to retain control and mitigate compliance exposure.

Transaction Fee Optimization

Crypto transaction fees—especially on networks like Bitcoin and Ethereum—can fluctuate widely based on network congestion. Gateways that don’t implement batching, fee prediction models, or Layer-2 support may pass excessive costs to users or suffer delays. Optimizing for EIP-7702 and UTXO batching is becoming critical for sustainability and user satisfaction.

5. Solutions

To overcome these challenges, modern crypto gateways are implementing:

• KYT providers integration for on-chain AML/KYT screening and sanction detection

• Modular compliance architecture allowing dynamic KYC, tax logic, or fiat modules depending on jurisdiction

• Self-custody by design, reducing exposure to custodial licensing and third-party risk

• Batch processing engines, including EIP-7702 and UTXO batching, to optimize transaction fees

• Integrated fiat off-ramps for automatic conversion to local currency

6. inabit’s Hybrid Crypto Gateway Solution

inabit offers a unique solution that combines the plug-and-play simplicity of traditional custodial gateways with the control and customization of infrastructure providers.

Traditional Option 1: Custodial off-the-shelf products

Examples: BitPay, CoinsPaid, NOWPayments These platforms manage the full crypto stack for you, but at a cost.

Pros

• Quick to integrate

• Offers fiat settlement

• KYC/AML managed by provider

Cons

• No control over wallet or funds

• Funds often pooled with others

• High clearing fees (0.8%–4%)

• Minimal design flexibility

Traditional Option 2: Infrastructure SDKs

Examples: Fireblocks, BitGo, Web3 smart contract kits These tools provide complete control but require heavy development resources.

Pros

• Full wallet control

• Enhanced key management

Cons

• Long time to market

• No built-in front end

• High development cost

How inabit Bridges the Gap

inabit offers a hybrid approach that brings the best of both worlds: