MakerDAO: Okay, I Was Wrong
22 Sep 2023
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.
If you are new to Binance, do check out the following guides:
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.
Before I share the process of activating your Binance Pay ID, here are a few terminologies you should know about.
Note: Binance Pay account is within your main Binance account. This is not a separate account, but you need to fulfill the minimum criteria to be able to use it.
Login to your Binance mobile app, and make sure you are using the Pro version.
When in doubt, click on the profile icon at the top left, and you will find an option to toggle between Binance Lite and Pro at the bottom. And, at the top, you will find the option to set up Binance Pay account.
Click on Binance Pay, and you will be at the Binance Pay settings page:
Click on the settings at the top right, and you will be able to configure the various settings, such as setting payment priority, Binance Pay Pin, and other settings.
There are more features like setting up payment priority which is useful when making payments to the merchants. When you explore these settings, it will be easier for you to understand and configure it. When in doubt, just send me a tweet @coinsutra and I will do my best to guide you.
If you have done all this, congratulations as you have configured your Binance pay account. Now, the next big thing is to send payment to someone.
Note: Binance pay service can be used only by KYC verified users. So the probability of being scammed is low.
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.
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”
Now, on the next page :
Here you can add the recipient’s email ID, phone number, or Binance ID/Pay ID to make the payment.
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)
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.
This is one of the simplest ways to start sending and receiving funds via Binance for free using the Binance Pay feature.
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.
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.
There are no transaction fees for sending or receiving money via Binance Pay.
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.
Binance Pay wallet is depreciated, and now you can use the Binance funding wallet, that is where you will receive funds via Binance Pay.
Unfortunately, you can’t reverse the Binance Pay transactions.