The biggest challenge with cryptocurrencies is their adoption; for mass adoption, it has to be able to change hands. Thanks to stable coins like USDT and USDC, crypto adoption is increasing quickly.
However, one of the biggest challenges with crypto payments is the withdrawal fees. When you send crypto from one wallet or exchange to another, you have to pay blockchain fees ranging from $0.2-$10.
This makes crypto transactions impractical for small payments and hurts the overall adoption.
This is where Binance, the world’s largest crypto exchange by volume, has introduced a feature called Binance Pay.
This complete guide will teach you everything you need to know to get started with Binance Pay.
Binance Pay is a free service that lets you spend crypto on real-world goods and services without paying any fees. You can also send cryptocurrencies to your friends and family for free.
If you frequently send crypto to another Binance user, you can use Binance Pay to transfer and save money in the transaction fees cost.
Binance Pay is available for users like me and you and businesses who wish to accept payments in crypto. Once a merchant enables Binance Pay for their e-commerce store, they can accept payments from other Binance users.
Features of Binance Pay
Pay to anyone for free who is on Binance – You can transfer funds from your Binance account to other Binance users for free.
Pay to your friend who is not even on Binance – If you wish to send money to a friend or family who doesn’t have a Binance account, you can add their email or phone number and send crypto. The recipient will be notified to create the Binance account and claim the funds.
Pay to merchants online – Thousands of merchants accept payment via Binance Pay. Now, you can spend your crypto on stuff like recharging your mobile phone, booking flight tickets, ordering groceries, and much more.
Crypto box – If you wish to gift crypto to your friend or group, the Binance crypto box enables you to do that. Think of Christmas when you have to gift money to your friends and family, the Crypto box makes it a covenant and fun experience for all.
Instant payments – Payments made via Binance Pay are instant—so there is no waiting time when sending or receiving cryptocurrencies.
Spend to Earn – Binance mobile app let you directly buy gift cards, and coupon, or spend your crypto on various merchants. When you shop at these merchants, you will be rewarded in BUSD or similar cryptocurrencies.
Getting Started with Binance Pay: How to Activate Binance Pay ID?
Before I share the process of activating your Binance Pay ID, here are a few terminologies you should know about.
Pay ID – This is the random numeric ID that Binance will assign once your Binance pay account is activated. You can always send or receive funds using your Binance pay ID.
Nickname – When setting up your Binance pay ID or Binance P2P account, you need to set up an alias. I suggest you keep the nickname pseudo-anonymous. For example, instead of using something like “Robert,” you can use “CryptoDreams.” This way, if you use Binance P2P in the future, your real name is not revealed.
Binance Pay pin – While setting up a Binance Pay account, you will be asked to set up a pin code. This pin will be required whenever you are making a payment via Binance Pay.
Open a Binance account (5-10 minutes)
Complete the Binance KYC (Account verification) (5 minutes)
Follow the below-mentioned steps to activate your Binance pay account
Adding funds to Binance Pay for payment
Before you send funds to anyone, you need to add funds to your Binance account.
For Binance pay payments, the funds are managed under “Binance funding account wallet”.
If it’s your first time using Binance, you can add funds using your bank account, credit card, debit card, or by simply depositing crypto.
A few things to note –
If you are sending funds to other Binance Pay users using Pay ID, Email, or Phone number then you can simply click on withdraw on any screen, and select the option to withdraw to Binance Pay user.
1) Click on withdraw, and on the next page select the Crypto that you want to send, and select the option “Send via Email/Phone/ID”
2) Now, on the next page
3) Here you can add the recipient’s email ID, phone number, or Binance ID/Pay ID to make the payment.
Scan To Pay – Faster Way to Make Free Crypto Transfers
Well, the above process is good in many situations, and there is another method that is often faster to send Binance Pay payments.
On your Binance app homepage, you will find an option to scan the QR code (See screenshot below)
1) On the next page, if you are sending money, simply scan the QR code of the recipient. Or you can ask the recipient to do the same thing, but click on “Receive”, which will reveal the QR code, and you can send the payment by scanning the QR code.
2) This is one of the simplest ways to start sending and receiving funds via Binance for free using the Binance Pay feature.
How Do I access my Binance pay wallet?
There was a separate wallet for Binance pay, but now everything is clubbed within the Binance funding wallet.
When you receive funds, they will land in your Binance funding wallet. You need to transfer funds to your spot or margin wallet for trading, or you can withdraw it using the standard method.
The funds within the Binance funding wallet can also be used to spend money via Binance card or spend crypto at various merchants.
Conclusion – Binance Pay is Faster, Cheaper & Better
If you are a Binance user but if you haven’t used the Binance Pay feature, you are missing out on a lot. Binance Pay makes the financial transaction really fast, and free. The transfer is instant, so there is no waiting for settlement time.
Overall, I do feel Binance Pay might become a big deal in the days to come, and people might prefer using Binance Pay over PayPal, Payoneer, and others as users will save money on the transfer fees.
Do let me know your thoughts after testing Binance Pay. If you know of a similar service, do let me know in the comment section below.
Here are a few important FAQ’s that you should check out, and then walk through our extensive library of Binance tutorials.
What are the transaction fees for Binance Pay?
There are no transaction fees for sending or receiving money via Binance Pay.
Should I use Binance Pay or Binance P2P?
When dealing with someone to buy/sell crypto using P2P, who is outside your friends and family, it is better to use Binance P2P. The reason is, Binance P2P is an escrow service, and in case of any ambiguity, Binance customer support will help you. Use Binance Pay for paying merchants, sending money to friends and family mostly.
I can’t find Pay Wallet. What happened?
Binance Pay wallet is depreciated, and now you can use the Binance funding wallet, that is where you will receive funds via Binance Pay.
Can you reverse Binance pay transactions?
Unfortunately, you can’t reverse the Binance Pay transactions.
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