Introduction
Bitcoin was created to serve as a peer-to-peer electronic cash system, a function that is rarely utilized. Instead, most Bitcoin users have taken to speculation and wealth preservation over the coin’s intended usage: payments. One of the reasons Bitcoin has not caught on as a payment method is a steep price of processing a transaction, making it uneconomical to use. Several other major cryptocurrencies suffer from the same challenge, including Ethereum, which started as a worthy alternative to Bitcoin but has recently fallen victim to the steep network fees. Leading cryptocurrency exchange Binance has not given up on the promise to bring crypto to the mainstream allowing users to make purchases and send and receive digital assets cheaply. In February 2021, it launched the Pay feature, a “contactless, borderless and secure user-to-user cryptocurrency payment feature.” Using Binance Pay, the exchange’s users can send and receive crypto payments or gifts at no cost. Users can pay merchants as simply as using a credit card, only cheaper. Before using the Binance Pay feature, you need to sign up for a Binance account, verify their identity, and then activate the Pay feature allowing you to send and receive crypto payments. This guide will show you how to activate Binance Pay for your account, how and when to use it, the benefits of using the feature, and highlight a few merchants already supported on the service.
What is Binance Pay?
Binance Pay is a new service from the leading cryptocurrency exchange enabling its users to send and receive crypto payments amongst one another without paying any transaction fees. Merchants and individuals can use Binance Pay, and the service is available to Binance users exclusively. Unregistered Binance users can receive crypto payments through Binance Pay, but they can only redeem them once they create an account, verify it and activate the Pay feature. More than fifty digital assets are currently supported, giving Binance users a broad selection of assets to use when paying or receiving payment. Think of Binance Pay as a PayPal alternative for the cryptocurrency industry. With PayPal, users can send, receive conventional money across borders and shop in their favorite stores. Binance Pay offers a similar proposition allowing its users to spend their crypto on supported merchants such as Travala or simply send and receive crypto from friends and family. You can view and check which merchants are currently supported on the Binance Pay service through the Binance Marketplace. The complete list of merchants utilizing Binance’s Pay feature includes Travala, Coinsbee, Cryptorefills, CS.Deals, Cybertino, L’exception, and Shopping.io. Also, it is worth noting that the list is continuously growing.
How to Set Up a Binance Pay Account
Activating the Binance Pay feature is a simple process that takes less than three steps if you already have a Binance account. Otherwise, you need to register for a Binance account and verify your identity before proceeding.
Step 1 – Access the Funding Wallet page.
Access your Binance account on the web, desktop, or mobile app and navigate to the [Funding Wallet] page. On the mobile application, tap the [Profile] icon at the top left side of the screen and select [Pay]. On the Binance Desktop application, navigate to the ‘Funding Wallet’ page by clicking on the [Wallet] icon on the top right to reveal a dropdown menu. Select [Funding] from the list.
Step 2 – Access the Binance Pay feature.
From the Funding Wallet page (on the desktop and web interfaces), click on [Pay] or [Receive] tabs to open the Binance Pay feature. On mobile, after tapping on the [Pay] button from the first step, the application will load a welcome page, as shown below. Tap the [Open Binance Pay] button.
Step 3 – Create a username and Pay PIN.
The last step involves creating a unique username and easy-to-remember six-digit Personal Identification Number (PIN). Treat this PIN the same way you do your ATM PIN since you will use it to authorize spending on your account. Note: You can check out our guide on how to avoid phishing scams on Binance and secure your account for tips on keeping your Pay PIN secure. If you already have an active Binance username used within the Binance ecosystem, such as on the P2P platform, it will automatically be filled in here, and you cannot change it. Important: Usernames cannot be changed once a user has set them up; therefore, take the time to choose your preferred alias. Accept the service terms by clicking (or tapping) on the checkbox mark provided and then click (tap) the big orange [Activate] button. You have now activated the Binance Pay feature for your account.
How to Use Binance Pay
Now that you have activated your Binance Pay feature, it’s time to start receiving and sending payments from and to friends and family as well as paying merchants listed on the Binance Pay Marketplace. Let’s begin with receiving payments.
How to Receive Cryptocurrency with Binance Pay
Follow the steps below to receive payments from another Binance Pay user.
Step 1 – Access Binance Pay
Log into your Binance account and navigate to the [Funding Wallet] page. Click on the [Receive] button. If you are using the mobile application, tap on the [User Center] icon on the top left of the screen, select the [Pay] option and then tap the [Receive] button.
Step 2 – Share Payment details.
In this step, you can share the QR code provided by saving it to your local disk on your mobile or desktop computer and sending it to your counterparty. You can save the QR code by clicking the [Save QR] button below the code. Next to the [Save QR] code link is another link for selecting a cryptocurrency of choice to receive. You can change the asset you want to receive by clicking on it to open the currency selection box. Tap (click) the currency field to open a dropdown list of all the supported cryptocurrencies on the Binance Pay feature. So far, at least fifty different assets are available to send and receive as payment or gifts. Below the Currency field, you can specify the exact number of assets to request from your payer, and you have the option to include a personalized note. Click the [Confirm] button to close the Currency selection box. If you made any changes in the currency selection box, the QR code would change to reflect the new changes, and you will have to redownload the new code to share it with your payer. You can use your email address, the phone number associated with your Binance account, or your Pay ID instead of using the QR code to avoid restricting your counterparty. This way, the sender can choose the asset they are comfortable sending and the amount they wish to send. Note: The Binance Pay ID is not the same as the Binance User ID. Do not confuse these two numbers. The former is used for payments within the Binance Pay feature, while the latter is used to identify a user’s account across the Binance ecosystem.
How to Send Cryptocurrency with Binance Pay
Sending cryptocurrencies on Binance Pay is just as simple as receiving them. Here’s how to do it:
Step 1 – Navigate to the ‘Funding Wallet’ Page
On the web or desktop application, click the [Wallet] icon and select [Funding Wallet] from the dropdown list. Once on the Funding Wallet page, click the [Pay] button. On the mobile application, tap on the [User Center] icon, select the [Pay] option, and then tap on the [Send] button as shown below. Alternatively, you can open the Binance app and tap on the scan icon on the top of the Binance home screen, or tap the three dots (…) next to the scan button to reveal a couple of Pay options. Select the [Send] option. Another quick alternative to accessing the Pay feature is tapping and holding the Binance app icon on your phone’s home screen. This action reveals a few quick options, including launching the Binance Pay scan tool. Tap it to open the Pay App scanner.
Step 2 – Fill in the recipient’s details.
Ask the recipient to provide their Pay ID, email, or phone number associated with their Binance account. These details will be used in this step. Click on the appropriate option as shown below, depending on which information you have about the receiver’s account. If you use the QR code method, you do not need to manually provide the recipient’s details as these are included in the code. Additionally, suppose you are using the desktop or web version. In that case, you may not be able to use the scan tool and, instead, have to use the manual method to specify the recipient’s details, amount, and cryptocurrency to send.
Step 3 – Fill in the currency and amount to send.
In this step, you need to specify which currency you wish to send and the amount of that currency plus include an optional note to your receiver. If the cryptocurrency you wish to send is not preselected, you can change it by clicking on the [Coin] field to open the currency selection box. It’s worth noting that only currencies that you already hold in your Spot or Funding wallets will appear here. Sending any other asset will require that you first go back and convert the available balance into a cryptocurrency of your choice, then come back and select it in this stage. Selecting an available asset in this step will close out the Currency selection screen and allow you to continue to the confirmation stage.
Step 4 – Confirm the transaction.
In the last stage, you have the option to change from which wallet you want the funds to be deducted. You can select either Spot or Funding wallet. Click on the [Change] button within the Payment Method field to change the default payment wallet. After specifying which wallet you want to use to make the payment, check that all the other details are correct, including the recipient’s email address, Pay ID, or phone number (whichever option you used). Click [Confirm] to send the funds.
Benefits of Using Binance Pay
There are several benefits to using Binance Pay over other market competitors. Some of these include:
Convenience – Binance Pay is part of the broader Binance ecosystem that includes trading services, staking, investment, mining, buying and selling cryptocurrencies, spending through Binance Card, and several other verticals. Having Pay as part of this ecosystem makes it easier to spend your cryptocurrency instead of converting it to fiat first using third-party services. Additionally, it’s fast given that the user avoids the conversion step to spend the crypto they already have within their Binance accounts.Cost – it is free to send and receive payments on the Binance Pay feature because all users are on the Binance platform. Technically, the funds are in the same wallet, but Binance only has to update ledger records to reflect the sender and receiver’s new balances. It’s hard to compete with a free option considering that the alternative is to withdraw funds to your local bank or other third-party services that support crypto payments. This way, you will incur transaction costs and network fees depending on how you withdraw your funds.Diverse marketplace – there are tens of merchants or stores already available on the Binance Pay marketplace, including Travala, Coinsbee, Cryptorefills, CS.Deals, Cybertino, L’exception, and Shopping.io. More merchants are joining the service, which means that users will have access to a more diverse marketplace in the future.A broad selection of assets – Binance Pay provides support for more than fifty cryptocurrencies, a number that is constantly growing as Binance offers support for more assets.
Final thoughts
Binance Pay is an excellent addition to the Binance ecosystem enabling users to make and receive payments at zero costs. The service is fast, convenient, easy to use, and accessible on the web, desktop, and mobile devices. This detailed guide highlights that sending and receiving cryptocurrency through Binance Pay involves a straightforward process. Anyone can use the service so long as they have a verified Binance account. As more people sign on to the service and Binance adds more merchant stores, Pay is poised to be more indispensable, helping bring cryptocurrencies and blockchain to the mainstream.
