Users can pay their bills with cryptocurrency directly from their crypto wallet or with a payment processor that acts as an online cryptocurrency gateway.
Satoshi Nakamoto developed the first decentralized cryptocurrency called Bitcoin.
and called it a “peer-to-peer electronic money system”. According to the Bitcoin white paper, online payments can be made directly from one party to another, bypassing a banking institution with a peer-to-peer version of electronic money.
However, in addition to being used as an investment vehicle or store of value, Bitcoin can be used to pay for goods and services. Similarly, other cryptocurrencies such as Dogecoin
can be used to pay bills online with cryptocurrency.
In this article, we will discuss how to pay with cryptocurrencies, how to spend bitcoins on everyday purchases, and the different ways you can use your cryptocurrencies to pay your mobile phone, gas or food bills.
How to pay with cryptocurrency?
First, you need to purchase a crypto asset such as bitcoin in order to start paying with cryptocurrencies. Exchanges like Coinbase and Binance allow users to exchange fiat for currency (or vice versa) and securely store their private keys. However, if you do not trust third parties with your private keys, personal storage may be an alternative.
The next step is to register a wallet of your choice to pay bills directly from your crypto wallet. There are many options for sending payments in cryptocurrencies, from hardware to software, from the Internet to paper wallets. As mentioned above, cryptocurrency exchanges also offer wallets to store private keys on behalf of their users. However, make sure that the wallet you choose is compatible with the cryptocurrencies you choose.
Finally, check with your service provider if you can use cryptocurrencies to pay your bills. As merchants increasingly adopt blockchain technology, many businesses have already started accepting payments in cryptocurrencies. For example, Amazon supports Cardano.
, BTC and ether
payments. Companies can open a business account with a payment processor (i.e. an online cryptocurrency payment gateway) such as BitPay and start receiving ETH through their app.
What bills can I pay with cryptocurrencies?
Users can use cryptocurrencies to pay for their expenses, from mortgage or rent payments to phone, electricity and internet bills. For example, they may use cryptocurrency debit cards offered by payment processors to convert crypto to fiat to pay for mortgages, since most banks do not yet accept them as payment methods and may not be able to pay rent or mortgages directly with cryptocurrencies.
Companies like AT&T allow customers to pay their mobile bills with cryptocurrencies. Similarly, some municipalities are starting to accept BTC, ETH and other payments. In addition, gym memberships, student loans, electricity bills, and credit cards can be paid directly from a crypto wallet or with a crypto debit card.
When choosing to pay in cryptocurrencies, it is very important to check if the jurisdiction you live in handles them legally. For example, Switzerland treats cryptocurrencies as an asset class, which means that Swiss residents can transact with cryptocurrencies. But on the other hand, China has officially banned cryptocurrency exchanges since 2019. However, avoid transactions in cryptocurrencies unless they are accepted as a legal form of payment in your country.
Is it possible to pay bills with bitcoins?
Many companies accept BTC as a payment method, including Microsoft, Wikipedia, Travala, Shopify.com, and more. For example, Xbox gift cards, which can be used for online purchases at the Microsoft Store, Windows, and Xbox, can be purchased through Bitcoin platforms. There are several different ways to pay bills with cryptocurrencies, as described in the following subsections:
Bitcoin debit cards
Bitcoin debit cards are like bank-issued prepaid debit cards that can be loaded with cryptocurrency to pay bills. When using a bitcoin card with a merchant, stored BTC or other cryptocurrencies are converted into any fiat currency for making crypto payments for purchases.
In addition, any fiat currency supported by the card can be withdrawn from ATMs using a Bitcoin debit card. To apply for a Bitcoin debit card, users must purchase a bank card from an exchange that issues such cards.