How to use cryptocurrency for payments on websites? 【PandabitPay】

How to use cryptocurrency for payments on independent websites? 【PandabitPay】, but not everyone knows it was originally created for anonymous payments. More and more people are starting to use cryptocurrency for everyday spending, not just for investment. Now, many companies and services have begun accepting cryptocurrency as a payment method. This guide will explain in simple terms how cryptocurrency payments work and where you can spend these funds.

https://bitpay.pandafb.ai/

https://bitpay.pandafb.ai/

How do cryptocurrency payments work?

To pay with cryptocurrency, you first need two things: a cryptocurrency wallet and sufficient funds in it. Your cryptocurrency wallet is like a regular wallet—you store money in it, only in electronic form. You can also think of it like a banking app that displays your account balance and allows you to manage your funds. Once your cryptocurrency wallet is ready, making a payment is simple: just send the correct amount to the seller’s wallet address.

Most payments are made through Bitcoin (BTC) or stablecoins such as USDT or USDC. Stablecoins are popular because their value is relatively stable and pegged to the US dollar. If you hold other types of cryptocurrency, you can easily use conversion tools (usually found in your wallet app or exchange) to quickly convert it into stablecoins or other cryptocurrencies before making a payment.

WARNING!

A key difference between cryptocurrency and traditional payments is the mandatory network fee (called “gas” in some networks). This fee is charged by the blockchain network itself to process and secure your transaction, and it is always deducted directly from the amount you send.

If you are paying via P2P (peer-to-peer), be sure to clarify beforehand whether the price includes the network fee. If you are buying something on a website, the invoice amount usually already includes the fee.

If you are paying the fee, you must include it in the total amount you send. For example, if a store charges exactly 1.0 Ethereum (ETH) for an item, and the network fee is 0.01 ETH, then you must send a total of 1.01 ETH. If you send only 1.0 ETH, the recipient will only receive 0.99 ETH because a 0.01 ETH transaction fee will be deducted from the amount you send. Always check the network fees before confirming a transaction and add them to the price of the item.

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Multiple Ways to Pay with Cryptocurrency

There are four main ways to pay with Bitcoin and other cryptocurrencies: direct transfers, online checkouts, cryptocurrency debit cards, and gift cards.

1. Direct Transfers: This is the simplest method. You transfer cryptocurrency directly from your wallet to the recipient’s wallet. This payment method is best suited for small businesses with low order volumes, fundraising, and transfers between two people.

2. Online Checkouts: You can pay with cryptocurrency when purchasing goods on some websites, provided the store has a dedicated cryptocurrency payment gateway. If it has, you will see the cryptocurrency payment option on the checkout page. The system will generate a wallet address or QR code for receiving payments, which you can then use to transfer funds.

3. Crypto debit cards: These cards allow you to use your cryptocurrency balance wherever traditional bank cards (Visa or Mastercard) are accepted. When you pay, the issuing institution instantly converts your cryptocurrency into fiat currency (such as USD or EUR) and transfers the money to the merchant. Important note: These cards must be linked to a cryptocurrency account or wallet that is escrowed by the issuing institution and has been topped up. The card cannot be used if there are no funds in the account.

4. Gift cards: Many large stores do not yet directly accept cryptocurrency. A workaround is to first purchase a gift card for the store using cryptocurrency on a dedicated platform, and then use it to purchase goods or services at the corresponding store, just like a regular gift card.

A Practical Guide to Paying with Cryptocurrency Using Different Methods

As you can see, there are several ways to pay with Bitcoin or other cryptocurrencies. Let’s take a closer look at how each method works in practice. This is a step-by-step payment “algorithm” designed for each of the methods described above.

Direct Transfers

The essence of this method is sending funds from your cryptocurrency wallet to the recipient’s wallet. The specific steps are as follows:

Step 1: Ask the recipient for their cryptocurrency wallet address or QR code.

Step 2: Log in to your cryptocurrency wallet or exchange app and go to the “Transfer/Withdrawal” section.

Step 3: If you copied the recipient’s wallet address, paste it into the designated input box.

Step 4: Select the type and amount of cryptocurrency you want to send, and choose the corresponding network. Remember to consider the platform’s transaction fees.

Step 5: Double-check all the information and then confirm the transaction. Both you and the recipient will receive a notification that the transfer was successful. You can also track this transaction using the transaction hash in a blockchain explorer.

Online Checkouts

Some online stores that have integrated a cryptocurrency payment gateway also allow you to pay with cryptocurrency at checkout. Please remember: not all companies accept cryptocurrency as a payment method. We will provide a list of some cryptocurrency-friendly companies later in this article.

To pay with cryptocurrency at checkout, follow these steps:

Step 1: After selecting your items and adding them to your cart, proceed to the checkout page.

Step 2: Fill in your shipping address and other delivery information, then select “Cryptocurrency” as your payment method. Next, click on the currency you intend to use (e.g., Bitcoin).

Step 3: The platform will generate a wallet address or a QR code for you to use for payment. Please save this.

Step 4: Log in to your cryptocurrency wallet and go to the “Transfer” section.

Step 5: Paste the wallet address provided by the seller into the designated input box and enter the amount of cryptocurrency you wish to send.

Step 6: Double-check all information and confirm the transaction. Then wait for the seller to send a confirmation notification that “payment received”.

As you can see, this method is very similar to direct transfer in terms of process. The only difference is that here, an additional platform is involved in the process, such as a cryptocurrency payment gateway.

Crypto Debit Card

If you don’t already have a cryptocurrency debit card, you’ll need to apply for one. The process is very simple if you follow these steps:

Step 1: Create an account on your chosen cryptocurrency platform. Then complete KYC (Know Your Customer) and enable 2FA (Two-Factor Authentication).

Step 2: Find the “Cards” section in your personal account and click the “Issue card” or “Add” button. Once the card is issued, it can be used immediately.

Step 3: Top up the card by transferring funds from your existing cryptocurrency wallet to the card, or by purchasing cryptocurrency on an exchange and depositing it into the card. You can also link your wallet directly to the card, so that funds will be automatically deducted from your wallet as needed during payments.

Step 4: Offline, use this card to pay via Apple Pay or Google Pay; online, enter your card information on the payment page to complete the payment.

Step 5: Regularly check your card balance and top it up as needed.

Gift Card

Using a gift card to complete a cryptocurrency payment essentially involves first purchasing the gift card with cryptocurrency. Below is a detailed breakdown of the process for obtaining a gift card:

Step 1: Choose a platform that supports purchasing gift cards with cryptocurrency (e.g., eGifter).

Step 2: Create an account on the chosen platform and complete email verification.

Step 3: View the list of stores and companies that support cryptocurrency gift cards and select the one you wish to purchase from.

Step 4: Proceed to the checkout page. Copy the receiving wallet address provided by the platform.

Step 5: Open your wallet and go to the “Transfer” page. Paste the receiving address into the corresponding input box, select the cryptocurrency to use and the amount to send, and then confirm the transaction.

Step 6: Open your email – the platform will send the gift card code to your inbox.

Step 7: Use the gift card at physical stores or online: Show the code to the merchant or enter it into the corresponding input box at checkout.

Advantages and Disadvantages of Using Cryptocurrency for Payment

Before you start paying with cryptocurrency, it’s helpful to understand its advantages and potential problems.

Advantages (Pros) Disadvantages (Cons) Global Payments. You can send cryptocurrency anywhere in the world without facing bank transfer limits or lengthy processing times. Limited Acceptance. The number of merchants that actually accept cryptocurrency payments is still limited compared to credit cards or cash. Fast Transaction Speed. Transfers are typically completed in seconds to minutes, much faster than traditional bank wire transfers. Irreversible Transactions. Once a payment is sent and confirmed on the blockchain, it cannot be canceled or refunded for errors. Low Fees. Cryptocurrency payments are very inexpensive, sometimes as low as less than a cent. High Price Volatility. Cryptocurrency prices can fluctuate wildly every second, meaning the amount you send may have lost its intrinsic value by the time the recipient receives it. Using stablecoins largely avoids this problem. They offer high security. Blockchain systems are transparent and secure, with transactions protected by strong encryption. However, they require technical knowledge. New users need to learn about wallets, private keys, and network fees, which can be a learning curve for beginners.

Where is cryptocurrency accepted as a payment method?

Cryptocurrency is most widely accepted in areas that emphasize privacy, digital freedom, and fast global payment options. These places are increasingly common, including retail stores and well-known supermarket chains.

1. Privacy and Digital Services (VPN & Hosting): Companies focused on online privacy often accept cryptocurrencies to meet users’ needs for anonymous financial transactions.

VPN Providers: Services like ExpressVPN, NordVPN, and Mullvad accept Bitcoin and other cryptocurrencies, providing users with more private payment options. For example, Mullvad is frequently chosen because it also accepts Monero, a privacy-focused coin. 1. **Web Hosting:** Companies like MonoVM and is* hosting support cryptocurrency payments to provide a censorship-resistant payment method, ensuring clients’ websites remain online.

2. **E-commerce:** Many online stores accept cryptocurrency directly at checkout via dedicated payment systems (plugins). This allows users to quickly complete online shopping payments from anywhere in the world. Early adopters in this area include companies like Overstock, Etsy, and Newegg. Some large e-commerce platforms, such as Shopify, also allow merchants to easily add cryptocurrency payment options.

3. **Retail:** Most large brick-and-mortar stores and mainstream digital retailers, such as Microsoft, Dell, and Walmart, have begun accepting cryptocurrency payments.

4. **Travel:** Cryptocurrency offers significant advantages when booking flights, hotels, and travel packages, especially for international travel. Due to fast transaction processing and cross-border convenience, bookings are often confirmed instantly, without waiting for slow international bank transfers. Travala and Expedia were among the first companies to introduce cryptocurrency payments in this field.

5. Luxury: For high-value purchases, such as luxury goods or vehicles, the efficiency advantages of cryptocurrency are even more pronounced. When handling large sums of money, the fixed network fees for a single transfer are often far lower than the high percentage fees charged by banks for large wire transfers. Tesla once accepted Bitcoin for car purchases, and some luxury brands, such as Hublot and BitDials, also support cryptocurrency payments.

Of course, this is not a complete list of companies that accept cryptocurrency as a payment method. The number of such organizations is increasing daily. You can learn more about goods and services that can be purchased with cryptocurrency in our articles.

With the emergence of tools such as payment cards and gift cards, cryptocurrency payments are becoming increasingly simple, bridging the gap between digital currencies and traditional stores. While key details such as network fees and transaction irreversibility still need to be considered, in terms of speed, security, and global reach, cryptocurrency has become a powerful alternative to traditional currencies.

If you still have questions, please check the FAQ section below or ask your questions in the comments.

FAQ

What can I buy with Bitcoin?

Cryptocurrency can be used to purchase virtually any goods and services, including: VPN and hosting services, large retail companies (such as Microsoft and Dell), e-commerce platforms (Overstock, Etsy), travel companies (Travala), and various luxury goods, including Tesla cars.

Is it safe to pay with Bitcoin?

Yes, paying with Bitcoin is considered very safe.