The crypto exchange has big hopes for Binance Pay, which now runs in beta.
The world’s biggest cryptocurrency exchange by trading volume, Binance, isn’t content with just having people buy Bitcoin and other coins.
It wants to jump-start demand by having people use cryptocurrencies. It has been announced by the global exchange earlier today at its virtual event, Binance Blockchain Week, claiming that last Friday it had discreetly launched a beta version of Binance Pay, the rival of PayPal.
“Binance Pay is a contactless, borderless and secure cryptocurrency payment technology designed by Binance,” reads on its website.
“Binance Pay (beta) allows you to pay and get paid in crypto from your friends and family worldwide.”
Changpeng “CZ” Zhao, the CEO of Binance told the Binance Blockchain Week virtual audience, “We think that payments are one of the most obvious use cases for crypto.”
However, it has encountered many challenges, he shared. The largest difficulty is for merchants to have systems in place to accept currencies that the overwhelming majority of customers don’s use. It is easier to accept cash and credit for people who use them regularly.
The system of Binance allows users to pay in crypto, while the merchant receives fiat-backed stablecoins that can be converted into fiat. CZ stated that “This way their business doesn’t have to fluctuate with crypto.”
The exchange bills Binance Pay as “a basket of products,” which will involve the previously unveiled Binance Card – a debit card that converts users’ crypto to fiat whenever they made a purchase.
Similar to Binance Card, Binance Pay supports five currencies. Bitcoin and Ethereum are both represented, as it is the exchange’s BUSD stablecoin and Binance Coin (BNB), an exchange-specific utility token used to pay trading fees and have taken part in Binance-hosted token sales. Users can now pay with SXP tokens from credit card company Swipe; Binance purchased the firm last year.
However, not like the debit card, there is no actual card with Binance Pay – users can transfer funds from their wallet with the use of a QR scanner in the app.
Although CZ has big plans for Binance Pay, he then joked that the Beta launch has been quiet.
“If you can find the product, you can try it,” he stated.
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