Making Payments with Crypto: Tutorial, Benefits, and Use Cases
During the early years of the industry, it was rare to witness everyday purchases made with crypto. This rarity is celebrated annually on Bitcoin Pizza Day (May 22), commemorating Laszlo Hanyecz's historic purchase of two pizzas for 10,000 BTC.
Now, with the increasing popularity of digital assets, paying with crypto at stores and merchants has become considerably more accessible. In fact, an estimated 580 million people owned cryptocurrency by December 2023, with major global brands like Gucci, AT&T, Microsoft, Ralph Lauren, KFC, and Burger King now embracing crypto payments as the norm.
But what drives this surge in digital asset adoption? And why should you choose to pay with crypto? Let's explore these questions and discover how to send and receive cryptocurrency instantly and without fees in this article.
Why Pay With Crypto? Benefits and Use Cases
Unlike fiat payment methods such as credit and debit cards or bank transfers, digital asset payments do not require financial intermediaries to process transactions. Instead, when you send money with crypto to someone, you engage directly with that person through peer-to-peer (P2P) transfers.
The absence of intermediaries translates to faster confirmation times and lower fees, as fewer parties are involved in the transaction. However, it's important to note that transfer speeds and costs can vary depending on the blockchain and current network activity. For instance, a standard ETH transaction costs $2.01 on Ethereum but only $0.00079 on Arbitrum.
Additionally, crypto payments are irreversible, making them attractive to merchants and e-commerce stores combating fraudulent chargebacks. These payments are also borderless, incur no cross-border fees, and can be sent and received by anyone with an internet connection and a desktop or mobile device. Furthermore, all crypto transactions on public blockchain networks are transparently auditable via block explorers.
Protected by public-key cryptography and residing on decentralised blockchain networks, digital asset payments mitigate counterparty risks and eliminate single points of failure associated with traditional currencies. And unlike fiat currencies, you have full control over your crypto assets.
Given these advantages, individuals and organisations are increasingly utilising crypto payments for various purposes, including:
Remittances and cross-border payments
Salary payments for global teams
E-commerce payments
Sending money with crypto to friends and family living abroad
VALR Pay: Facilitating Free and Instant Cryptocurrency Payments
With VALR Pay, you can send crypto to anyone instantly and without fees. There's no need to worry about lengthy processing times or expensive transfers when sending or receiving digital assets - everything is swift and cost-free through the service.
Getting started with VALR Pay is straightforward, bypassing the complexities often associated with crypto payments like managing wallet addresses. Simply use a mobile number, email address, or VALR Pay ID to initiate crypto transfers.
To pay with crypto via VALR Pay, you can use Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Tether USD (USDT), USD Coin (USDC), PayPal USD (PYUSD), or any other cryptocurrency supported on VALR.
How to Send Money Through Crypto via VALR Pay
VALR Pay not only provides instant and fee-free crypto transfers but also simplifies the process of initiating transactions. Here's how you can send money with crypto using the service:
1. Log into your VALR account or create a new one here.
2. Navigate to the "VALR Pay" menu on your account dashboard. On smartphones, select the "Pay" tab on the Home screen.
3. Choose the "Pay" option, enabling you to send crypto to a phone number, email address or to someones VALR Pay ID.
4. Alternatively, you can initiate payments by scanning your friend's VALR Pay ID QR code with your device's camera.
5. Enter your friend's details, select your preferred crypto, and specify the amount for the crypto payment.
6. Optional settings include anonymous coin transfers and leaving notes or messages for the recipient.
7. After clicking "Next," finalise the transaction by selecting "Pay Now."
8. That's it! You've successfully sent a free and instant crypto transfer using VALR Pay.
For more information on sending money with crypto via VALR Pay, please refer to our comprehensive guide. And if you have any questions, feel free to reach out to our support team here.
Risk Disclosure
Trading or investing in crypto assets is risky and may result in the loss of capital as the value may fluctuate.
VALR (Pty) Ltd is a licensed financial services provider (FSP #53308).
