As cryptocurrencies gradually enter our daily lives, cryptographic payment services are rapidly emerging as a new payment option, especially in industries such as technology, tourism, and e-commerce.
"Crypto City" will deeply explore the concept, operation methods, and practical applications of crypto payments in different industries, and further compare the differences between crypto payments and traditional payment methods to provide readers with a more comprehensive view of crypto payment trends.
What are crypto payments?
Crypto payments refer to payment methods that use cryptocurrencies such as Bitcoin and Ethereum to trade goods or services. This payment method relies on blockchain technology to provide decentralized peer-to-peer transactions without the involvement of traditional financial institutions such as banks or payment processors.
Crypto payments have been increasingly accepted by merchants, especially in the technology, travel and e-commerce sectors. Common crypto payment methods currently include scanning the store's QR Code to send the cryptocurrency in the consumer's wallet to the merchant; or some platforms provide cryptocurrency debit cards that can convert cryptocurrency into daily purchases. Fiat currency as payment method.
"Crypto City" compiles examples of accepting crypto payments in different industries
Encrypted payment in the e-commerce industry
Overstock: This is a well-known e-commerce platform in the United States that sells furniture, home furnishings, electronic products, etc., and accepts Bitcoin and multiple cryptocurrency payments.
Rakuten: The Japanese e-commerce giant accepts Bitcoin as a payment method and has its own Rakuten Wallet as a cryptocurrency wallet.
eGifter: You can use Bitcoin to purchase gift cards from various brands, such as Amazon, Walmart, and Target, allowing you to indirectly use cryptocurrencies at these large retailers.
Crypto Market: The crypto market operated by "Crypto City" can use USDT (TRC20) for payment to purchase mobile phones, home appliances and other products.
Crypto Payments for the Travel and Aviation Industry
Platforms such as CheapAir, Alternative Airlines and AirBaltic accept Bitcoin as payment for flight bookings, making it easy for cryptocurrency users to purchase tickets
Platforms such as Bitcoin.travel and TravelbyBit support a variety of cryptocurrencies as payment methods for ordering hotels, air tickets, and travel services.
Crypto payments in the gaming industry
Newegg: This electronics retailer accepts Bitcoin payments and is a popular choice for cryptocurrency enthusiasts to buy computer hardware and accessories.
Microsoft: In the Xbox Store, players can use Bitcoin to purchase games and other digital content.
Are there benefits to crypto payments?
Crypto.com, which provides VISA cryptocurrency financial card services, pointed out that the main features and advantages of encrypted payments are privacy protection, cost reduction, globalization and decentralization.
"Crypto City" explains in detail here what benefits crypto payments can bring:
1. Privacy protection and pseudo-anonymity
Cryptocurrency payments are usually made through decentralized wallets and do not require users to provide personal information, which protects traders’ privacy to a certain extent. Although transaction records are publicized on the blockchain, they can only be tracked through wallet addresses, preventing excessive personal data leakage.
2. Peer-to-peer trading
Cryptocurrencies enable peer-to-peer (P2P) transactions without the involvement of third-party institutions such as banks or payment processors. This reduces the involvement of middlemen and improves transaction efficiency, allowing funds to flow directly from sender to recipient
3. Lower transaction fees
Compared with traditional financial services (such as bank transfers or credit card payments), cryptocurrency transaction fees are usually lower, especially when making cross-border payments, which can avoid high exchange rates and fees. This is especially beneficial for users who frequently conduct international transactions.
4. You can trade with the Internet
Cryptocurrency payments can be made anywhere in the world as long as there is an internet connection. This makes cryptocurrency a very convenient global payment tool, especially suitable for situations where cross-border payments are required, eliminating the trouble of traditional currency exchange.
Comparison of the differences between crypto payments and traditional payments
In order to let everyone better understand crypto payments, we can regard bank transfers, credit cards, etc. as traditional payment methods. The differences between the two can be summarized in the following table:
Traditional payment methods
Cryptocurrency payments
The transaction speed usually takes several minutes to several days. International transactions take longer and can be completed within a few minutes. There is no need for an intermediary and international transactions are very fast. Handling fees are relatively high. Credit card handling fees are about 1.5~3%. Cross-border payments are also The handling fees involved in foreign exchange fees are usually low, and there are no foreign exchange fees for cross-border payments. Privacy and security. You need to provide personal information such as credit card number and address. If there is a risk of leakage, you only need to provide the wallet address, which has strong privacy. Supervision and compliance are subject to Strict financial supervision, providing consumer protection mechanisms. Lack of unified supervision, uncertain regulations, and some countries have restrictions on cryptocurrency. Irreversibility of transactions. Cancellation and refund mechanisms are provided. Consumers have the right to complain. Transactions are irreversible. If an error or fraud occurs, Acceptance of difficult-to-recover funds is accepted by most merchants around the world. The popularity is high and the acceptance is low, but it is gradually increasing. Especially technology and international merchants are easy to use. Most people are familiar with it and are widely used in various shopping and payment scenarios. Master basic cryptocurrency operations and wallet usage, with a certain technical threshold
Cryptocurrency payment company Crypto Wallet even believes that cryptocurrency payments are more likely to be more deeply integrated with traditional financial systems in the future. For example, if financial institutions and banks can begin to adopt blockchain technology and cryptocurrency, consumers will also be able to enjoy faster and cheaper international payment services, making cryptocurrency a mainstream payment tool in daily life.
How do I pay with cryptocurrency?
Paying in cryptocurrency has become increasingly convenient, with many options available both online and in store, but first you need a cryptocurrency wallet and make sure you have enough cryptocurrency in the wallet.
The so-called wallet does not directly store your cryptocurrency, but rather stores the private keys that allow access to your crypto assets. Common wallets include exchange wallets such as Coinbase and Binance, as well as standalone wallet apps such as Exodus or Electrum.
If you’re not yet familiar with the concept of crypto wallets, read our guide to cryptocurrency wallets.
Next, we introduce two common crypto payment methods during transactions:
1. Direct cryptocurrency payments
Users complete transactions by scanning a QR code provided by the merchant during checkout, or by manually entering their wallet address. This method does not require an intermediary, and transactions are conducted point-to-point, which results in lower handling fees and is particularly suitable for cross-border transactions.
However, this payment method requires the merchant to be able to accept cryptocurrency payments, and once the transaction is completed, it cannot be reversed or refunded, so users need to be particularly cautious when operating.
2. Cryptocurrency financial cards or prepaid cards
Cards like Crypto.com, BitPay, and Binance Visa automatically convert cryptocurrencies into fiat, allowing users to spend anywhere Visa or Mastercard is accepted. The main advantage of this type of card is that it is widely used and is used all over the world just like a traditional financial card.
These cards may involve fees when performing cryptocurrency conversions and are affected by the exchange rate of fiat currency, which may affect the user's final consumption amount.
In addition to the above methods, if some merchants do not directly accept cryptocurrency, you can also pay bills (such as bills, mortgages, etc.) through services such as BitPay, which is equivalent to being able to use the currency in your cryptocurrency wallet. Payment instruments.
This eliminates the need for users to transfer funds through the traditional banking system, simplifying the payment process. However, it should be noted that when paying the bill, the cryptocurrency will be converted into legal currency, and a certain handling fee may also be required.
In addition, recently there have been many crypto payment cards that use "crypto credit card" as a promotional inducement, but in essence they are still "debit cards" and "prepaid cards". What is the difference? "CryptoCity" has also been compiled below for everyone.
Credit card and debit card prepaid card are defined as cards that can be consumed first and paid later, so that you do not need to pay cash immediately and repay at the end of the month. Use the money in your bank account directly to pay for consumption, unlike a credit card where you can "borrow" money for consumption. A prepaid card is a card that you deposit money into first and then use it to spend money, just like a stored value card on a mobile phone. Application Case Use Cathay Pacific's credit card to settle the bill at Quanlian. You will enjoy the discount in the first month, but the actual payment will be made after the bill comes out next month. When you use a Taishin Bank debit card to buy coffee at a FamilyMart convenience store, the money will be deducted from your bank account immediately. You purchased a gift card at 7-Eleven with a stored value of NT$1,000, which can be used to pay for items in the supermarket. (EasyCard, All-in-One Card)
Cryptocurrency Payments In Taiwan, what channels are available for crypto payments?
Although Taiwan’s attitude toward cryptocurrency is relatively open, and the government only has clear requirements for anti-money laundering and KYC; the overall development of crypto payments is still in its early stages, and merchant acceptance is relatively limited.
The following is a list of several cryptocurrency payment services that can be used in Taiwan:
Taiwan crypto payment
feature
Supported merchants/platforms
Crypto Market The crypto market operated by "Crypto City" uses $USDT (TRC20) for payment, and is mainly aimed at e-commerce platforms for electronic goods and daily necessities. Consumers can purchase mobile phones, home appliances and other products in the crypto market. Crypto.com Card provides a charge card service that can be paid with cryptocurrency and provides different rewards based on the card level, calculated in $CRO coins.
Supports all merchants around the world that accept VISA, especially suitable for cryptocurrency holders who travel frequently.
Binance Pay is one of the world's largest cryptocurrency exchanges and supports multiple cryptocurrencies. Users on both sides can conduct cryptocurrency transfers for free. Although there is no clear list of merchants in Taiwan yet, many places around the world support Binance Pay and facilitate cryptocurrency transfers. MaiCoin Pay is Taiwan’s local cryptocurrency trading platform that supports merchants to accept cryptocurrency payments. List of merchants that provide MaiCoin support, most of which are local companies in Taiwan. BitoPay was launched in cooperation with Lanxin Financial and supports a small amount of cryptocurrency payments. No specific merchant list has been announced yet. There is no specific merchant information yet, but it is expected to be integrated into more payment platforms.
Are crypto payments really a good deal? Risks when paying with crypto
Although cryptocurrency payments have the advantages of convenient and decentralized transactions, they are also accompanied by some significant risks.
First, cryptocurrency prices are extremely volatile. For merchants and consumers, this kind of volatility will lead to a gap between the expected value of the transaction and the actual value, increasing the uncertainty of payment; and encrypted payment transactions are different from traditional bank or credit card payment systems. Once the transaction is Once confirmed, it cannot be reversed or refunded. If the user sends the wrong address or encounters fraud, the funds will not be recovered.
From a security perspective, although cryptocurrency is based on blockchain technology, users still face the risk of private key management. Once the private key is lost or hacked, the funds may be permanently lost.
Another issue that cannot be ignored is regulatory uncertainty. Although Taiwan has relatively loose regulations on cryptocurrencies, other countries around the world have different attitudes towards cryptocurrencies. Some countries even restrict or ban cryptocurrency transactions. If some countries suddenly tighten their control over cryptocurrencies, it may affect cryptocurrencies. circulation and use
In the future, as the cryptocurrency market matures and blockchain technology develops, we have reason to expect that crypto payments can be further integrated into the traditional financial system to provide users with more flexible and diverse payment options. Whether you are an individual or a business, understanding and mastering this emerging technology in advance will help you seize more opportunities in the digital economy era.
