At this day and age, digital transactions can mean many different things—online bank transfers, QR code payments, in-app purchases, mobile wallet transactions, and the list goes on.
One type that’s been gaining more attention in the past few years is crypto payments. If you don’t understand this method enough, or you're curious to know what makes crypto payments different from other digital transactions, we’ve got more info for you in this article.
What Is a Crypto Payment?
Crypto payments are transactions that happen over blockchain technology using cryptocurrencies. They’re borderless transactions, so you can send crypto payments quickly to anyone outside the country—no intermediaries, such as banks or remittance centers, involved.
Whether you're buying a cup of coffee, a movie ticket, or a car, if you're doing it with Bitcoin (BTC) or any other crypto, that's a crypto payment for you.
How Is a Crypto Payment Different From Other Digital Transactions?
Now let’s flesh out what sets crypto payments apart from other digital transactions by exploring some of their benefits.
1. Quick Completion Times
First up, crypto payments usually move faster than your regular digital transactions, especially for cross-border transfers. You can send crypto remittances in minutes, even seconds, such as how it works with Ka.app, a crypto payment platform. This allows you to avoid processing delays often associated with traditional banking, which sometimes may take several days.
2. More Affordable Fees
Here's a big deal: the cost! Crypto payments can have much lower fees compared to other digital transactions, especially when you're sending money internationally. In fact, with Ka.app, you can send crypto for free as long as the recipient accepts the payment in the same currency. For instance, if you send them KASTA tokens, they should receive the payment in KASTA tokens as well.
Otherwise, they can receive the payment in a different token using the swap crypto functionality for as low as 0.376% of the transaction amount.
3. Global Access
As mentioned, cryptocurrencies are borderless by nature. You can send and receive payments anywhere in the world without worrying about hefty exchange rates or local banking regulations.
4. Greater Security
Blockchain is distributed across an entire network of computers, making it incredibly difficult to tamper with. Each crypto transaction is recorded as a 'block' and linked to the previous transaction, forming a 'chain.' Hence, the name blockchain. These blocks are like a puzzle, filled with complex cryptographic codes. Tampering with a single block would mean recalculating all those codes, not just for that block, but for every block linked to it.
Also, if you use an online crypto wallet like Ka.app, you can ramp up the security of your funds another notch. We do regular security updates, use battle-tested technology to keep your crypto safe while in transit and storage, and comply with regulations that prevent money laundering, fraud, and other illegal activities.
5. No Intermediaries
One of the best things about doing crypto payments is you're not relying on banks or other financial institutions to process your transactions. These transactions happen on blockchain technology, so it's just you and the other party, direct and straightforward.
6. Inclusivity
Crypto is accessible to anyone with an internet connection and crypto wallet. You don't need a bank account to participate, which is highly beneficial for people in places where banking services are limited or non-existent.
Final Thoughts
Crypto payments are not just another way to move money; they're a testament to how we can redefine and further simplify financial transactions. They offer a blend of speed, cost-efficiency, security, and inclusivity that sets them apart in the digital transaction space.
That said, if you’re interested in making convenient crypto payments, you can try it out with Ka.app. It’s an easy-to-use crypto payment platform designed with beginners in mind. It’s accessible in 179 countries/locations, and if you’re in the European Economic Area (EEA), you can also use it to buy crypto with cash, convert crypto to cash, and make your own crypto IBAN account.
FAQ
How can I get started with crypto payments?
You can start by setting up a crypto wallet, and then purchasing crypto. After that, you're ready to send crypto payments.
Can I pay bills with crypto?
Yes, you can. Check out our How to Pay Bills with Crypto guide for the details.
Do crypto payments offer more privacy?
Yes, they do. While transactions are transparent and traceable on the blockchain, your identity isn’t directly linked to these transactions. It's like having a public ID number that doesn't actually reveal your personal details.
