Summary

Cryptocurrency payments are increasingly gaining acceptance among retailers, individuals and businesses. While you can transfer money manually, payment gateways offer an easier way to get paid in cryptocurrency. This way you don't have to copy the address manually and avoid errors. You can also pay in fiat using cryptocurrencies in a linked account via a cryptocurrency debit or credit card.

Cryptocurrency payments provide a cheap, efficient and fast way to transfer money. International transfers do not require the use of local fiat currency. Payment services are often more intuitive than wallets and also have customer service features. Payment gateways, on the other hand, offer users less control, may charge fees, and take longer to set up than regular wallets.

You can use Binance Pay to make cryptocurrency payments. The service is available to all Binance users with a cryptocurrency wallet and there are no fees. Whenever you're ready, you can pay other Binance Pay users or supported retailers. If you prefer to pay with a credit or debit card, you can also order a free Binance Card.

Introduction

Although cryptocurrency is best known for speculation and investment, it can also be used for payments. . This feature is sometimes forgotten, but people do use cryptocurrencies such as Binance Coin, Bitcoin, and BUSD to transfer value. Large retailers, such as Microsoft and Starbucks, as well as small businesses have begun accepting cryptocurrency payments for their goods and services.

Generally, this is done through a payment gateway, and the process is simple and easy to operate. You can even use cryptocurrencies to pay for fiat items via cryptocards. So whether you want to pay back a friend or buy something, there are many options for using blockchain technology.

How do cryptocurrency payments work?

At the simplest level, cryptocurrency payments transfer cryptocurrency from one wallet to another. If doing it manually, you'll need to provide the recipient's public address. Use the wallet and copy the address to send funds. While it sounds easy, the process can be tricky and intimidating to newbies. Mistakes often occur that cannot be undone, such as sending the wrong type of cryptocurrency to an address or choosing the wrong blockchain network. Since cryptocurrency transactions cannot be reversed, these mistakes often result in significant losses.

To make the entire process simple and easy to operate, cryptocurrency service providers like Binance have created more intuitive cryptocurrency payment methods. These gateways simplify complex operations and can be completed in seconds. The specific steps vary depending on the payment processor, but common methods are as follows:

1. The customer decides to pay for goods or services, or someone wants to pay a friend.

2. The payee uses their payment gateway to create a digital bill for the payment. This is usually a QR code containing the receiving wallet address and the required amount. For example, purchasing a $10 meal requires $10 of a specific cryptocurrency at the current market exchange rate.

3. The payer uses the App to scan the QR code and confirm the payment.  

4. The cryptocurrency is transferred to the recipient’s account or digital wallet.

The entire process takes just a few clicks to complete. It's also safer and more convenient than trying to do all the steps manually.

Pay with a cryptocurrency card

Another great option for cryptocurrency payments is to use a cryptocurrency linked to credit or debit card. This way, you can pay with cryptocurrencies even if the recipient only accepts fiat currencies. When using a cryptocurrency card, you need to store the currency and tokens in the card's provider platform. When you purchase an item, the cryptocurrency exchange quotes your digital asset for sale in fiat currency and sends it to the payee. In some cases, you can also use cryptocurrency to complete your monthly credit card repayments. Specific terms will vary depending on the issuer or financial institution.

Cryptocurrency cards have wider usage scenarios than cryptocurrency payment gateways. However, paying friends directly can be a bit cumbersome unless they can accept card payments. If the recipient wants to receive money in cryptocurrency, a card is also not suitable. Both Visa and Mastercard currently offer cryptocurrency card options through different financial service providers.

What are the advantages of cryptocurrency payments?

There are many benefits to paying with cryptocurrency even without using a payment gateway or cryptocurrency card. When combined with a payment system, you also get the best of both worlds:

1. Bitcoin (BTC) and other cryptocurrencies can be used in almost any country. When making international payments, there is no need to convert to local fiat currency.

2. Depending on the cryptocurrency payment provider, your transaction can be completed almost instantly, which usually happens when both parties are using the same service. Even if your transaction isn't instant, it's often more efficient and cheaper than transferring money from a bank account, with fewer transaction fees.

3. The cryptocurrency payment service provides you with a customer service team to help you solve any technical problems. This does not apply to custodial cryptocurrency wallets.

4. For many people, using a cryptocurrency payment gateway is easier than creating and managing a wallet yourself.

What are the disadvantages of cryptocurrency payments?

While the advantages are clear, experienced users may find some limitations when making cryptocurrency payments:

1. You have less control than setting up your own wallet. Many people prefer the traditional experience of having complete control over their cryptocurrency. Payment gateways, on the other hand, add a middle party to the process.

2. If you do not use stablecoins, cryptocurrency prices may experience wild fluctuations. This can make it difficult for recipients to accurately plan their financial situation.

3. You must complete a lengthy registration process as well as identity authentication and anti-money laundering checks. While these can keep users safe, they are far more laborious than creating your own wallet.  

4. Some payment networks charge fees for the services they provide.

5. Cryptocurrency payment methods are still not widely recognized.

What is Binance Pay?

Binance Pay is a cryptocurrency payment service available to all Binance users. It provides a borderless and contactless way to quickly transfer and receive cryptocurrency. To send cryptocurrencies, you only need to fill in the other party’s email, mobile number or payment ID. You can also create a QR code, specify the amount, password, and payment notes. Binance Pay also has a list of merchants that accept the payment service.

How to pay with Binance?

If you already have a Binance account, go to the Binance Payments tab. Next, you'll need to follow the instructions to create a service nickname before you can start making and receiving payments.

The [Send] tab will allow you to make payments using email, mobile number or payment ID. The [Receive] tab will display your personal QR code, and you can set custom options for customized transactions. For detailed instructions, see the FAQ: How to Send Cryptocurrency to Individuals Using Binance Pay.

Use Binance Card

If you are interested in using cryptocurrency to pay for your daily fiat orders, Cryptocurrency Card is your best choice. As long as you have completed the required identity verification and anti-money laundering checks, you can sign up for a Binance Visa Card for free using your Binance account. Simply transfer the cryptocurrencies you want to use on the card to your funding wallet to use the Binance Card. When paying by card, the cryptocurrency is sold in the local currency you paid for and transferred to the supplier.

Summary

Since the first Bitcoin pizza was purchased for 10,000 BTC in 2010, people have been paying with cryptocurrencies. Over a decade later, we have evolved from manual processes to using integrated digital currency gateways provided by Fintech Banking & Cryptocurrency Services. To get started with cryptocurrency payments, check out your cryptocurrency exchange to see what they have to offer.