Bitcoin (BTC) first emerged as a peer-to-peer electronic cash system according to its whitepaper. Through this document, it became clear that bitcoin will facilitate online payments directly between two parties in a decentralized way, i.e., without needing a bank. Paying bills with crypto has now become a reality.

The fact that bitcoin can still be used to pay for goods and services holds true even nowadays. Not only bitcoin, but even Dogecoin, Shiba Inu, and Ethereum can pay your bills these days. Keep reading this article to learn how to pay your bill with cryptocurrency.

Paying Your Bills With Crypto: Is It Possible?

Crypto enthusiasts realized the possibility of paying for goods and services using bitcoin and most other altcoins when Satoshi Nakamoto published Bitcoin’s whitepaper. Given the high demand and popularity of bitcoin and other crypto assets, it is definitely possible to use them for payments. Various merchants that provide utilities like electricity, gas, and phone services accept crypto payments nowadays.

But to test the theory in reality by paying your bills with crypto, one must go through the following steps:

• You must have a crypto asset in the first place before making crypto payments. One of the most common ways of acquiring crypto is by exchanging fiat currency to cryptocurrency on a crypto exchange platform.
• Make sure you select renowned crypto exchange platforms like Coinbase, Kraken, Binance to ensure that your funds and personal information are secure and sound.
• After you have the desired amount in cryptocurrency, you would need a compatible wallet to put it in. One can select any type of wallet, either hot wallets or cold wallets, and install it on their preferred device to serve as a secure interface for storing private keys.
• A thorough research and understanding of how to use crypto wallets is essential to use them in proper ways. Storing private keys and seed phrases goes without saying to keep your crypto wallet secure.
• Once all of this is done, you need to seek an appropriate service provider to be able to pay your bills with crypto.
• As time progresses, many global merchants, service providers, and even travel sites have started to accept payments in crypto. The list already includes big names like Amazon and WHO, where you can easily pay using Bitcoin, Ethereum, Cardano, etc.

3 Ways To Paying Bills With Bitcoin

Making peer-to-peer transactions and paying bills is the primary function of Bitcoin. So, you can easily pay your bills with Bitcoin in multiple ways. There are a number of well-known companies and online retailers that accept payments in bitcoin, and the best part of it is that the list keeps growing. Visa, Square, PayPal, and MasterCard are just a few of the many major players that have shifted to accepting crypto as payments.

Here are 3 methods to pay your bills using Bitcoin.

Direct Payment

This method of payment is often seen while shopping online or even offline. When you see a clear indication that a merchant accepts BTC payments, you can proceed to make a direct payment to that merchant. Paying a merchant with bitcoin directly is preferred because it does not involve any conversion fee. If a utility provider accepts BTC payments, then transactions would be faster and more convenient.

Bill Pay Services

Bill payment services are a type of platform where users can make a payment using their Bitcoin, but it instantly converts it into USD. There are several bill payment services available online, but the trick is finding a reliable one that allows you to make payments safely. Some of these platforms have advanced features for the added convenience of their users. A person may choose to set up a recurring payment schedule to have their bills paid on time, automatically.

Bitcoin Cards

Just like a bank-issued debit card, a bitcoin debit card works by loading crypto into it to be able to pay your bills. But to use bitcoin cards, one must be at the merchant’s location and should make Point-of-Sale (PoS) transactions. As you make the transaction, the BTC or any other crypto stored on the debit card converts into supported fiat currency. 

Additionally, you can also withdraw any fiat currency at Bitcoin ATMs using Bitcoin debit cards. Even in situations where the merchant doesn’t accept Bitcoin payments, and all you have is Bitcoin, you can withdraw your BTC in fiat currency and use it to make payments. Luckily, there are thousands of bitcoin ATMs and kiosks situated all over the globe.

What Types of Bills Can You Pay With Crypto?

From the aforementioned, we have surmised that it is possible to pay your bills using crypto, especially bitcoin. Many services and utilities can be paid with crypto, for using direct payments or various bill payment services. The following list includes some types of the bills you can pay with cryptocurrencies.

• Credit card bills
• Rent and mortgage
• The cost of auto insurance
• Electricity and gas
• Internet and phone
• Gym membership
• Home and health insurance premiums
• Taxes, fines, etc.

Whether the process of paying bills with crypto is safe or not, depends on the service and the platform you choose. The reason there are so many options out there is to indicate that people need to select one method carefully.

Due to the nature of cryptocurrencies, many utility providers and online retailers consider them better than credit or debit card payments. In countries like Australia and the United States, people are preferring to use crypto to pay their bills because it requires no third-party involvement.

Companies That Accept Bill Payments in Crypto

Starting off with a lot of skepticism, the current condition reflects that many online businesses have grown to trust cryptographic payments. By giving consumers their preferred checkout options, several companies have seen their profits jump. A few companies that have opened doors for crypto payments are:

• AT&T
• Microsoft
• Virgin Airlines
• Whole Foods
• Overstock
• Save the Children
• Twitch
• Home Depot
• Wikipedia
• Gyft
• Benfica

Furthermore, a few countries, such as Switzerland, have recognized bitcoin as a legal class asset. The state of Colorado has allowed taxpayers to pay with BTC and other cryptocurrencies.

Conclusion

The anonymous and decentralized aspects of cryptocurrencies make them trustworthy and manageable without needing central jurisdiction. It is refreshing to see many global companies open up crypto bill payment options. But there is a long way ahead of Bitcoin before it would be considered legal tender in not just El Salvador but many other nations as well.

Frequently Asked Questions (FAQs)