CoinGate, one of the major players in the online crypto payments services, has announced on February 1, 2019, that it has added support for XRP payments on its gateway and over 4500 shops would now be accepting XRP payments through its portal.
Coingate was established back in 2014 and went live in March of 2015. It basically works like any other payment portal but for cryptos.
How Does CoinGate Operates?
Imagine CoinGate as any other payment portal, take PayPal for example. If any service provider who wants to sell their product and can accept crypto in return then they may partner with CoinGate to fulfil that service.
Suppose a vendor is selling cakes and accepts XRP as a payment, and it has partnered with CoinGate to fulfil those payments. Let us assume a cake sells for $10, then what the CoinGate would do is, it would convert that $10 into XRP and the user can connect their XRP wallet with CoinGate app. Whatever amount of XRP is set against the fiat, would be deducted from the customer’s crypto wallet.
The merchant can receive the payment of the cake either in crypto or US dollar or any other fiat if supported in the region minus the transaction fee, which is generally 1% of the total amount.
Coingate in its announcement on February 1 has cited popular demand for XRP as the reason for its addition to its payment gateway. Now users holding XRP can complete crypto payments to 4500 online shops supported by the CoinGate.
The Blog post announcing the latest development has also cited the decentralization factor of XRP being the pivotal point in its addition to the payment network.
Here’s an excerpt from the Blog Post,
“Some might say that the network is not completely decentralized because at first, the significant part of servers was controlled by a single company. However, this is not really the case. In fact, there is an ongoing decentralization strategy in place for the further stages of XRP ledger development. Basically, XRP ledger will have even more 3rd party validators joining the club. For each two trusted and highly secure nodes, one node run by developers will be removed. It will further decentralize the network and scale it to better performance at the same time. In fact, to further accelerate the decentralization of the XRP network, we are now running our own XRP Ledger validator!”
The rise of XRP as a convenient form of payment speaks a ton about the cryptocurrency. CoinGate being one of the major payment gateways in the crypto realm can help cryptocurrency achieve a much wider acceptance and the recent addition could mark the beginning of it.
CoinGate apart from providing payment support also allows the user to buy XRP through Debit/credit card and even bank transfers, making it one of the most convenient and usable cryptocurrency there is in the market.