Platincoin | Using Cryptocurrency as a Payment Method

Users can use cryptocurrencies to pay for various expenses, such as phone, electricity, and internet bills, as well as rent and mortgage payments. Similarly, some municipalities have begun accepting ETH, BTC, and other currencies as payment.

According to Platincoin, a cryptocurrency wallet or debit card can be used to pay for gym memberships, student loans, electricity bills, and credit card bills. Before deciding to pay with cryptocurrencies, it is crucial to determine whether they are legal in your home country.

Can you Pay Bills with Bitcoin?

Many companies, such as Microsoft, Wikipedia, Travala, Shopify.com, and others, accept Bitcoin as payment. The subsections will explain a few different kinds of cryptocurrency-based payment methods for paying bills in cryptocurrency:

Bitcoin Debit Cards

Similar to prepaid debit cards issued by banks, bitcoin debit cards allow users to load cryptocurrency onto them to pay for goods and services. When using a Bitcoin card at a business, stored BTC or other cryptocurrencies are exchanged for whatever fiat currency is needed to complete the crypto payment for the purchase. 

As stated by Platincoin, a Bitcoin debit card can also be used at ATMs to withdraw any supported fiat cash. Users may need to open an account with an exchange that offers such cards in order to apply for one, as well as sign up for a digital wallet. To comply with Anti-Money Laundering (AML) regulations, users may undergo a “Know Your Customer” (KYC) verification process.

Where Can a Bitcoin Debit Card Be Used?

Major credit card companies like Visa and Mastercard work together to give out Bitcoin debit cards that can be used for online and in-person purchases. Visa is accepted, making the process of using BTC as simple as using dollars and cents. Similarly, users of the BitPay card can begin paying their bills in cryptocurrencies anywhere Mastercard is accepted.

Additionally, some cards permit the conversion of BTC (or any other cryptocurrency) to foreign fiat currency and charge cardholders for the service. Bitcoin debit cards are not faultless; they have some disadvantages. For instance, the risk of a cyberattack increase if money is transferred from a wallet to a company that provides debit card services.

Pay-for-services with Bitcoin

Businesses that handle payments for clients’ subscriptions, bills, and purchases, like Coinsfer in the US, accept Bitcoin in addition to Bitcoin debit cards. Buyers must send links to the goods they wish to buy with cryptocurrency, and Coinsfer will then give them the total cost of the order, including shipping costs. Once customers have paid with Bitcoin, Coinsfer pays for the order they can track.

Bitcoin Payments can be Made Directly.

As suggested by Platincoin, inquire with merchants if they accept Bitcoin in-store or online, or visit their website for more information. Microsoft, Whole Foods, Overstock, Virgin Airlines, and Save the Children are a few examples of companies that accept Bitcoin payments. Direct payments made to businesses that accept Bitcoin eliminate conversion and service fees.

Additionally, some states—including Colorado in the US—have begun accepting Bitcoin through PayPal for tax payments, enabling citizens to pay their taxes directly in cryptocurrency.

Using cryptocurrency as a payment method.

How do I use cryptocurrency to make a Payment?

To start using cryptocurrency as payment, one must first buy a crypto asset like Bitcoin. Users can trade fiat for money (or vice versa) and store their private keys securely on exchanges like Coinbase and Binance. However, self-custody may be an option if you don’t trust outside parties with your private keys.

The next step is to register a wallet to pay bills directly from your cryptocurrency wallet. There are numerous ways to send cryptocurrency payments, including hardware, software, web, and paper wallets. As Platincoin notes, cryptocurrency exchanges also provide wallets for their users to store their private keys. As previously mentioned, bitcoin exchanges provide users with wallets to store their private keys. Ensure that the wallet you choose is compatible with your desired coins.

What bills can I pay with crypto?

Users can use cryptocurrencies to pay for various expenses, including phone, electricity, and internet bills and rent or mortgage payments. 

Similarly, some municipalities have started accepting payments in ETH, BTC, and other currencies. Additionally, one can use their cryptocurrency wallet or a crypto debit card to pay for gym memberships, student loans, electricity bills, and credit card bills.

Companies can open a business account and begin receiving ETH through its application using a payment processor (i.e., an online cryptocurrency payment gateway) like BitPay.

Verdict

Determine from your utility provider if you can pay your bills with cryptocurrencies. Due to the increasing use of blockchain technology by merchants, a growing number of businesses have begun to accept cryptocurrencies as payment. 

In the opinion of Platincoin, checking whether cryptocurrencies are legal in your country of residence is crucial before choosing to pay with them. For example, Switzerland recognizes cryptocurrencies as a type of asset, which means that Swiss citizens can buy and sell cryptocurrencies.