It’s essential to comprehend how digital transactions operate, particularly when it comes to cryptocurrency payments. Although they are not the same, many people use the terms payment gateway and payment API interchangeably.
Actually, being aware of the differences can help your company decide how best to accept stablecoins, Ethereum, and Bitcoin. Let’s examine each distinction in detail and discover how BitLily’s Web3 Payments API integrates them for a smooth cryptocurrency experience.
A Payment Gateway: What Is It?
A payment gateway functions similarly to a virtual cashier. It facilitates and authorizes payments between consumers and retailers. Gateways link banks and card networks in traditional banking.
A blockchain payment gateway, on the other hand, links your company to the blockchain directly in the cryptocurrency space. It securely completes payments, validates balances, and verifies on-chain transactions.
For example, BitLily’s Crypto Payment Gateway instantly notifies your e-commerce platform when a customer pays with Bitcoin, validates the transaction, and confirms it on-chain. Payments are therefore 100% transparent, quicker, and more secure.
A Payment API: What Is It?
In contrast, a Payment API (Application Programming Interface) is a tool for developers that enables websites or applications to establish direct connections with payment systems. Stated differently, it enables you to incorporate payment functionality straight into your product.
With BitLily’s Crypto Payments API, developers can:
- Instantly accept payments in stablecoins, Ethereum, and Bitcoin.
- Facilitate both off-chain and on-chain settlements with ease.
- For worldwide reach, incorporate support for multi-chain payments.
- Convert cryptocurrency to fiat automatically.
- Create decentralized, no-KYC payment flows.
Therefore, while a payment gateway handles payment processing, an API powers customization and automation.
Payment Gateway vs. Payment API: The Core Difference
| Feature | Payment Gateway | Payment API |
|---|---|---|
| Purpose | Processes and authorizes transactions | Enables payment integration and automation |
| Used By | Merchants and businesses | Developers and platforms |
| Customization | Pre-built interface | Fully customizable |
| Crypto Example | BitLily Blockchain Payment Gateway | BitLily Web3 Payments API |
Simply put, a payment gateway processes payments, while a payment API gives you the control to build your own payment system.
How BitLily Combines Both
BitLily unifies both solutions through its Web3 Commerce Infrastructure. This means businesses can:
- Use the BitLily Payment Gateway to quickly accept crypto payments, or
- Integrate the BitLily Payments API to build advanced payment systems.
In addition, BitLily enables on-chain verification, stablecoin payouts, crypto invoicing, and cross-border settlements — all without intermediaries.
Why Businesses Prefer BitLily
There are many reasons forward-thinking brands choose BitLily, including:
- Crypto-to-fiat settlement API for flexible withdrawals.
- Multi-chain payment processor supporting Bitcoin, Ethereum, and USDT.
- Stablecoin disbursement API for global payouts.
- No-KYC crypto API for instant onboarding.
- Developer-friendly design with clear documentation and sandbox testing.
As a result, BitLily helps freelancers, creators, and businesses accept crypto globally — with zero friction.
Concluding remarks
In conclusion, a payment API enables developers to create unique crypto payment systems, whereas a payment gateway streamlines transactions. Together, they serve as the foundation of contemporary Web3 commerce, and BitLily offers both thanks to its robust blockchain infrastructure.
🚀 Use BitLily to Accept Crypto Payments
Ready to scale your Web3 business?
BitLily allows you to:
- Instantly accept payments in stablecoins, Ethereum, and Bitcoin.
- For your store, incorporate a Blockchain Payment Gateway.
- For unique checkout solutions, use the BitLily Payments API.
- Automate cross-border payouts and cryptocurrency invoices.
👉 Sign up today to start building with BitLily’s Web3 Payments API — your all-in-one crypto payment solution.What’s the difference between a payment gateway and a payment API? Learn how BitLily’s Web3 Payments API lets you accept crypto worldwide.