What is Binance Pay: An In-Depth Guide

Are you looking for a way to use crypto to book a hotel or split a bill with your friends? Well, Binance Pay is an innovative payment solution launched in 2021 that allows you to do just that.

In essence, Binance Pay serves as a bridge between crypto and everyday payments. With over 300 crypto assets to select from, it allows users to enjoy the convenience of managing their financial interactions through a single integrated platform.

That said, let's take a closer look at what is Binance Pay and how to use it.

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What is Binance Pay?

So, what is Binance Pay, and how does it work? I kind of already answered what it is at the beginning of this article but let me reiterate myself – it’s a cutting-edge cryptocurrency payment technology that allows the integration of digital currencies into daily transactions. Such payment systems are here to redefine the digital economy^[1].

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Who can use Binance Pay? It's only available to Binance users who have passed KYC. To access this feature, you need to have either a mobile or a desktop app, so you cannot access it via the browser-based Binance version.

This contactless and secure payment solution empowers users to effortlessly shop with crypto and send it globally to friends and family. With multiple features available, Binance Pay opens doors to a new world of crypto-powered convenience.

The Payment Priority Order feature, for example, lets you customize your preferred crypto spending sequence, providing a unique level of flexibility. Additionally, lightning-fast transactions ensure that your crypto reaches its destination instantly, spanning over 300 different cryptocurrencies for maximum choice.

To receive a payment with Binance Pay, you simply generate a QR code and share it with the person who wants to pay you (or, you can also give them your Binance Pay ID). When they scan your QR code, the app will send the payment to your Binance wallet. If you're the sender, the same process occurs – you either fill in someone else's Binance Pay ID or scan their QR code.

Moreover, there is the "Send Cash" option, which allows you to exchange crypto for your desired fiat currency. Primarily, this feature is powered via P2P, but there is also the service provider option in some regions.

On top of all that, Binance Pay provides users with intriguing "Red Packets", which are like crypto gift boxes. You can create your own Red Packets containing either a random or specific quantity of tokens and send them to your friends (or to random Binance users). You can also claim Red Packets from Binance during various campaigns.

By the way, you can use Binance Pay to instantly top up your mobile phone. However, this is done using a third party (Alpha Digital Shop).

If you’re still wondering “Where can I use Binance Pay?”, note that Binance Pay's innovation extends beyond personal use. Through Binance Marketplace, businesses are seamlessly brought into the crypto ecosystem, simplifying transactions via existing Binance accounts.

Employing an efficient QR code system, Binance Pay transactions spring into action. To initiate a payment, you simply scan the merchant's QR code with your Binance app, triggering a seamless process. The app rapidly identifies the accepted asset (over 80 crypto supported for this feature) and executes the transfer, ensuring a fluid transaction experience.

Plus, you can access various hot deals via Binance Pay, including Amazon or Netflix gift cards, Steam and PlayStation credits, and whatnot.

All in all, there's a lot you can do with Binance Pay. That said, what is Binance Pay cost?

Binance Pay Fees

There are a few Binance Pay fees you should be aware of. When it comes to sending crypto to other Binance Pay users, primarily, there is no platform fee. However, there is a 1 USDT per transaction fee if the amount you send exceeds the threshold (which is any crypto amount equivalent to 75,000 USDT).

If you want to send crypto to an external crypto wallet, you'll have to pay a fixed platform fee based on the network through which your transaction is executed. Here are the fees as of writing:

Table: Binance Pay fees for sending crypto to an external wallet.

Moreover, when using the "Send Cash" feature via P2P, there is a $0.5 fee if you cash out less than $100 and a $1 fee if you cash out $100 or more. Note that the fees might change based on the specific region.

Lastly, there are different fees for the "Send Cash" via the service provider option. However, these fees depend on the service provider in question.

Do note that all applicable Binance Pay fees and related exchange rates are displayed before any transaction is made, so there won't be any surprises. By the way, refunds, if applicable, are sent to the user's Binance Pay Wallet in USDT.

How to Use Binance Pay?

You’ve learned what is Binance Pay and how it works. Now, you must probably be wondering how to use Binance Pay.

Well, to ensure that you make the most of it, I'll look over the main processes of this innovative payment solution and provide you with step-by-step guides. From setting up your account to making payments, I’ve got you covered.

So, without further ado, let’s delve into how to use Binance Pay.

How to Set Up a Binance Pay Account?

If you want to start using Binance Pay, the first step obviously is setting up an account so you can easily send and receive payments in a variety of cryptocurrencies.

Step 1: Register on Binance

To get started, head over to the Binance app or website and create an account if you don’t have one already.

You'll first need to enter your email address and verify it by clicking the link in the confirmation email that Binance sends you. After that, you'll be prompted to create a password and set up two-factor authentication (2FA) to help secure your account. You can use either Google Authenticator or SMS authentication.

Step 2: Complete Identity Verification

Once registered, it's time to complete your identity verification process (KYC). This is crucial for security and compliance. Upload the necessary documents, such as your ID and proof of residence, and then just wait for approval (it usually gets approved in a matter of minutes but can also take a few workdays).

Step 3: Access Binance Pay

Once your account is verified, log in and go to Binance Pay. As I've mentioned before, you can access it via the mobile or desktop app. I'll show you how to do it with the former. Just tap on the little icon with a hand holding a coin at the top-right corner of the mobile app homepage, and you'll be taken to Binance Pay.

Step 4: Set Up Payment Preferences

Tailor your Binance Pay experience by configuring your Payment Priority Order. This enables you to arrange your preferred cryptocurrencies for spending, ensuring your most-used coins are readily available when making payments.

You can set your Payment Priority Order by clicking on the setting icon at the top-right corner of the screen and selecting [Payment Priority Order].

Step 5: Explore Other Settings

You can also explore your pay limits, set the Pay PIN for more convenient and secure transactions, and tweak Binance Pay biometric settings (the latter you can find on the main Binance account security settings).

Overall, setting up a Binance Pay account is a simple process that only takes a few minutes. Once you've got your account set up, you'll be able to start using this innovative payment solution to send and receive cryptocurrency payments with ease.

How to Send Crypto with Binance Pay?

Whether you're a seasoned crypto enthusiast or just beginning your journey, sending digital assets in a secure and efficient way is imperative in the world of cryptocurrencies. So, let’s explore how to send crypto assets utilizing Binance Pay.

Step 1: Select the Recipient

As you already know, you can either scan someone's QR code or send crypto to them based on their Binance Pay ID (or email / phone connected to their Binance account).

If you have a QR code, go to the homepage and find the little scanning icon next to the search bar. Once you click on it, a QR scanning page will pop up. Then, just scan the code, and you'll be prompted to send crypto to that person.

If you don't have the code, go to Binance Pay, click on the [Send] button and then fill in your recipient's email address, phone number, or Binance Pay ID.

Step 2: Pick the Crypto You Want to Send

Decide which cryptocurrency you want to send. To make this selection, tap on the name of the chosen crypto, which will redirect you to the cryptocurrency list. Also, specify the amount of crypto you want to send (you have to do that by entering that amount in your local currency).

Besides that, you can add a note to your transaction (like "a gift", "for food", and whatnot). Once you're all set, click [Continue].

Step 3: Confirm the Transaction

Before finalizing, review all the details to ensure they're correct. If everything looks good, click [Deposit Now]. Binance Pay will then request your security verification, such as a PIN or fingerprint, to ensure the safety of your transaction.

Do note that the system will automatically use the funds in your Funding Wallet for the payment. If you prefer a different payment method, tap [Funding Wallet], and you'll see the available options (Spot & Funding Wallet or Earn Flexible Wallet). You must have funds in any of these wallets beforehand.

Binance Pay provides real-time conversion rates for your convenience, giving you a clear understanding of the amount being sent.

Once the verification is complete, your transaction will be processed. Upon successful completion, you'll receive immediate payment details on the screen. Additionally, the system will send email and SMS notifications, providing a comprehensive overview of the transaction. The recipient will also receive a notification about the incoming funds.

That's it! You now know what is Binance Pay crypto sending process.

How to Receive Crypto with Binance Pay?

Now, let’s talk about receiving crypto through Binance Pay. To do that, you can generate a QR code, or use your account email, phone number, or Binance Pay ID.

Let’s delve into each of those options.

Generating a QR Code

Step 1: If you want to generate a QR code for receiving crypto, click [Receive] on the Binance Pay homepage.

Step 2: Then, you can share the code and let that person fill out the other details themselves, or you can generate a QR code for a specific sum of a specific crypto asset. To do the latter, click on [Set Currency] or [Request Payment]. Then, just pick the currency you want to receive, enter the amount, and add a note (if you want).

You can also use the "Split Bill" option, which is a nifty feature if you, let's say, covered a bill at a restaurant and now your friends have to send you money back for it.

Here, just select the currency you want to receive, enter the full bill amount, and select how many people will split it.

Via Identification

You can also use your Binance account email, phone number, or Binance Pay ID to receive a payment. All you need to do is share that information with your friends.

Once the sender has sent you the crypto, it will be deposited into your Funding Wallet. You’ll get an email and SMS notification informing you of the transaction.

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How to Shop with Binance Pay on the Binance Marketplace?

So, you’ve learned what is Binance Pay, as well as how to use it when it comes to sending and receiving funds. Now, let's delve into another question – Where can I use Binance Pay?

One of the most exciting features of Binance Pay is its integration with the Binance Marketplace. The Binance Marketplace is an online shopping platform that allows users to buy and sell products using cryptocurrencies.

How to use Binance Pay to make purchases through the Binance Marketplace? Well, just follow these steps:

Step 1: Access the Binance Marketplace by clicking on the [Marketplace] button on the homepage of the Binance app. This feature brings well-known businesses right to your app, offering a diverse range of products and services. Here, you’ll find a variety of products and stores, such as Travala, Token Store, and Novelship.

Step 2: Browse through the available items and services, selecting those that catch your eye. There are various categories to choose from, including game top-ups, travel services, and shopping.

Step 3: As you discover your desired items, click on the product / service to see more details. For example, I was interested in booking a hotel. So, I clicked on [Travel], then [Hotels], and I was taken to Travala.

Step 4: When you're ready to finalize your purchases, you'll be taken to the check out page of that specific service. Then, just select Binance Pay as your preferred payment method and enter your payment details, including the cryptocurrency and the amount you wish to use. Just make sure to review the transaction details before confirming the payment.

Once you confirm the payment, you'll receive a notification acknowledging the transaction's success. This seamless process exemplifies how Binance Pay transforms cryptocurrency into a practical tool for everyday needs.

To ensure that you’ll always have a seamless experience shopping on the Binance Marketplace, remember to fund your wallet beforehand so you’ll have enough cryptocurrencies in your Binance Wallet to cover the amount of the purchase.

Moreover, make sure to check the merchant's terms and conditions before making a purchase. Some merchants may charge an extra fee for using Binance Pay.

So, now you know the answer to “Where can I use Binance Pay?”. Remember, if you're having trouble shopping with Binance Pay in the Binance Marketplace, you can always contact Binance customer support for help.

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Pros and Cons of Binance Pay

Having gained insight into what is Binance Pay and learned where you can use it, you might be wondering what are the pros and cons of using it. So, let’s go over them.

Pros

Simplicity and Convenience

Binance Pay simplifies the complex world of cryptocurrency transactions, allowing you to effortlessly send and receive crypto using just your mobile device. Its intuitive user interface and straightforward processes make it accessible to both new and experienced users, eliminating the barriers that often accompany digital transactions.

Borderless Transactions

One of the most notable benefits of Binance Pay is its ability to transcend geographical boundaries. Traditional financial systems often impose limitations on cross-border transactions, leading to delays and high fees.

Binance Pay, however, erases these barriers, enabling you to send and receive crypto to and from friends, family, or businesses around the globe. This seamless global reach enhances your financial connectivity and accelerates international commerce.

Secure Transactions

Security is a paramount concern in the realm of digital payments, and Binance Pay addresses this concern with advanced security measures.

Robust encryption protocols, multi-factor authentication, and cutting-edge anti-fraud mechanisms work together to safeguard your transactions and sensitive data. With Binance Pay, you can confidently engage in cryptocurrency transactions, knowing that your assets and information are protected.

Faster and More Efficient Transactions

Traditional financial systems can be plagued by delays and intermediaries that slow down the transaction process. Binance Pay, on the other hand, operates on the blockchain, enabling near-instantaneous transactions without intermediaries.

This speed not only enhances transaction convenience but also empowers businesses to streamline their operations and offer more efficient customer experiences.

Innovative Ecosystem

Beyond basic transactions, Binance Pay is part of a broader ecosystem that includes features like the Binance Marketplace. This integrated platform brings businesses directly to your Binance app, enabling you to shop and pay with crypto seamlessly.

This innovation transforms how you interact with merchants and service providers, bridging the gap between cryptocurrencies and daily transactions.

Cons

Limited Adoption

While Binance Pay's adoption is growing, it is not yet universally accepted. Not all businesses and individuals are equipped to handle cryptocurrency payments, limiting the scope of its usage in certain scenarios.

Volatility

Cryptocurrencies are known for their price volatility^[2]. The value of crypto can experience significant fluctuations in a short period, impacting the purchasing power of your funds and making it challenging to predict the exact value of transactions.

Transaction and Platform Fees

Binance Pay involves both transaction and platform fees, which sometimes might seem a bit high. Of course, these fees vary based on factors like network congestion, chosen payment methods, and the asset itself. Thus, it's essential to factor these costs into your decision to use the platform.

Overall, Binance Pay is an excellent option for people who want to use cryptocurrencies for everyday payments. It's fast, convenient, secure, and versatile. However, it's essential to be aware of its drawbacks as well.

Binance Pay for Merchants

I've talked about what is Binance Pay for everyday users, but I didn't really go into how it benefits merchants. So, let's do that.

Binance Pay is a game-changer for businesses wanting to step up their digital payment game. It's all about making payments quick, easy, and safe. Imagine getting your money in real-time, hassle-free, and with no extra fees for you or your customers.

Binance Pay has been busy, processing over $120 billion in transactions since 2021. It has also grown a huge user base of over 170 million and already provides support for over 80 digital assets.

Getting started with Binance Pay is a breeze. You can use it online, in-store, or even in your app. There are all kinds of tools available, including QR codes, payment links, invoicing, and even direct debit for recurring payments. Also, if you need to send out lots of payments at once, Binance Payout makes it super easy – no fees, instant processing, and it works globally.

The best part? You'll save on payment costs, and there are no gas fees for you or your customers. Besides, you have a dedicated support to help you out whenever you need it. So, whether you're a small business or a big corporation, Binance Pay has got you covered, making payments smoother and more efficient.

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Conclusions

With Binance Pay, the barriers that once separated traditional financial systems from the crypto world are fading away. Seamlessly blending convenience, security, and versatility, it empowers individuals to send, receive, and even spend their favorite cryptocurrencies with ease.

The features offered by Binance Pay are truly convenient, from the ability to split bills with friends to the possibility of booking a hotel with crypto. Overall, the gradual acceptance of cryptocurrencies has evolved into a legitimate means of exchange, and Binance Pay is pioneering a future where digital currencies seamlessly coexist with traditional forms of money.

As we venture into this tech-driven financial frontier, Binance provides a glimpse of tomorrow, hinting at a future where cryptocurrencies seamlessly integrate into our daily routines.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. D. Suprayitno, A.L. Sari, L. Judijanto, et al.: 'Blockchain And Cryptocurrency: Revolutionizing Digital Payment Systems And Their Implications On The Digital Economy';

2. H. Gupta, R. Chaudhary: 'An Empirical Study of Volatility in Cryptocurrency Market'.