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In the letter
- Binance Exchange launched Binance Pay.
- Users can use their crypto wallets to make purchases.
- Sellers can convert Binance stablecoin to euro.
Binance, the world’s largest cryptocurrency exchange in terms of trading volume, doesn’t just ask people to buy Bitcoin and other coins. He wants to revive demand by making people use crypto.
The global exchange announced early today at its virtual event, Binance Blockchain Week, that last Friday it had stealthily launched a beta version of Binance Pay, its response to PayPal.
“Binance Pay is a contactless, borderless, and secure cryptocurrency payment technology designed by Binance,” its website read. “Binance Pay (beta) allows you to pay and get paid in crypto by friends and family around the world.”
Binance CEO Changpeng “CZ” Zhao told the Binance Blockchain Week virtual audience, “We believe that payments are one of the most obvious use cases for crypto.”
But he encountered challenges, he shared. The biggest challenge for traders is having systems in place to accept currencies that the overwhelming majority of customers do not use. It is simply easier to accept cash and credit because people use them regularly.
Binance’s system allows users to pay in crypto, while the trader receives stablecoins backed by fiat which can be converted into fiat. (At this point, the product only supports one type of fiat: the euro.) CZ said, “This way their activity should not fluctuate with crypto.”
The exchange charges Binance Pay as “a basket of goods,” which will include the previously unveiled Binance card – a debit card that converts users’ crypto to fiat every time they make a purchase.
Like Binance Card, Binance Pay supports five currencies. Bitcoin and Ethereum are both represented, just like the BUSD of the exchange stable currency and Binance Coin (BNB), an exchange-specific utility token used to pay trading fees and participate in the sales of tokens hosted by Binance. Users can also pay with SXP tokens from the Swipe credit card company; Binance bought the company last year.
Unlike the debit card, there is no real card with Binance Pay – users can transfer funds from their wallet using a QR scanner in the app.
Although CZ has big plans for Binance Pay, he joked that the beta launch was silent. “If you can find the product, you can try it,” he says.
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