Key takeaways
- Since the first Bitcoin transaction in 2010, cryptocurrency payments have expanded significantly, allowing people to purchase a wide range of products, from food to technology, using Bitcoin and other cryptocurrencies.
- The Bitcoin payment ecosystem, which includes miners, merchants and consumers, is expected to reach $1.83 trillion by 2030, driven by regulatory developments, e-commerce flexibility and increasing use of physical wallets.
- You can pay with Bitcoin using different methods, including direct payments, crypto debit cards and gift cards, with each method having its own pros and cons.
- In 2024, many global brands, such as PayPal, Microsoft, Starbucks and McDonald’s, accept Bitcoin payments, showcasing the growing acceptance of cryptocurrency in mainstream retail and services.
Back in 2010, László Hanyecz made history by using 10,000 Bitcoin (BTC) to purchase two pizzas from Papa John’s. This marked the first-ever Bitcoin transaction for a physical item. Little did anyone know then that cryptocurrencies would evolve to the point that you can buy almost anything, from movie tickets to Microsoft products, with them.
But why do global brands accept Bitcoin?
By embracing cryptocurrency, these brands can take advantage of cost and time savings. With lower transaction fees, no currency exchange rates, and faster payments, they can showcase their innovation and attract tech-savvy customers.
The Bitcoin payments ecosystem market is projected to reach $1.83 trillion by 2030, growing at a compound annual growth rate (CAGR) of 20.10% from 2024. This ecosystem would consist of miners, traders, merchants, whales and consumers.
The market is expected to expand significantly due to factors like the shaping of the regulatory environment, the increased flexibility in e-commerce transactions, the growing use of crypto wallets for payments and the convenience of Bitcoin payments.
This article explores how to pay with Bitcoin, the advantages and disadvantages of various Bitcoin payment options, major brands accepting Bitcoin payments in 2024, and why due diligence is important when making a BTC payment.
How to pay with Bitcoin
Many businesses of varying sizes accept Bitcoin as payment across the world. These include global conglomerates and small businesses like sushi restaurants, auto repair shops and convenience stores.
There are different ways you can spend Bitcoin on products and services:
- Pay BTC directly to the seller using a crypto exchange or wallet
- Use crypto debit cards powered by Visa or Mastercard
- Send Bitcoin via gift cards that function just like regular cards
Did you know? According to Cointelegraph Research, around 30,000 merchants globally are accepting Bitcoin payments, showcasing its growing adoption in everyday commerce.
Here is more insight into how you can use these methods to make Bitcoin payments:
Pay Bitcoin directly using a crypto exchange
You can make a direct Bitcoin payment to the seller by selecting the “Send” option within your crypto exchange or wallet. Before proceeding, ensure you select the correct network to avoid losing your crypto.
Then, either paste their wallet address or scan a QR code, specify the amount of BTC you want to send, review the transaction details, and tap the “Send” button.
The wallet may request confirmation for the transaction, followed by a two-factor authentication (2FA) if you’ve enabled it, before initiating the payment process. Additionally, you’ll need to pay a transaction fee to process your payment.
Using debit cards to spend Bitcoin
Bitcoin debit cards offer a simple approach to spending cryptocurrency like conventional money. First, you need to register with a provider like Coinbase that offers debit cards for Bitcoin and other cryptocurrencies.
Then, load your debit card with BTC, which is converted into the required fiat currency when you make the purchase. These cards charge a fee but offer perks like cash-back rewards. You can set up a PIN and spending limits for added security.
Once loaded, use the debit card just like a regular bank card at merchant locations, online and at Bitcoin ATMs. Merchants accept fiat currency at the point of sale because the card provider automatically converts Bitcoin into fiat during the transaction.
Did you know? On Oct. 21, 2024, Avalanche launched a Visa card, allowing users to spend cryptocurrency. Available in physical and virtual form, the card is linked to a self-custody wallet and unique address per asset.
Use gift cards to spend Bitcoin
You can use Bitcoin gift cards to express your appreciation for family and friends. You can use Bitcoin to purchase gift cards at various retailers. On a platform like Binance, you can leverage your Bitcoin holdings to buy gift cards for popular stores such as Amazon, Starbucks or Uber.
To get started, create an account, log in, and select the gift card for the retailer or service you want. At checkout, choose Bitcoin as your payment method and transfer the required amount from your wallet to complete the transaction.
Once the payment is processed, you’ll receive a gift card code via email, which you can use to make your purchases. This method offers a convenient way to spend your Bitcoin while enjoying the benefits of gift cards from your favorite retailers.
Alternatively, there are platforms that don’t require you to create an account. You simply select the vendor for the gift card you want, choose your region, and specify the value. After processing your order, you’ll receive an email with instructions on how to access and redeem your gift card.
Some businesses that accept crypto gift cards are listed below:
- Style: Old Navy, Adidas
- Entertainment: Twitch, AMC Theaters
- Food and drink: Panera Bread, Dunkin’ Donuts
- Food: Instacart, Whole Foods
- Hotels: Airbnb, Regal
- Other retailers: Home Depot, eBay, Amazon, Walmart
Advantages and disadvantages of various Bitcoin payment options
Various Bitcoin payment options have their own pros and cons:
Paying in Bitcoin directly
Advantages
- Companies that accept Bitcoin can reduce credit card transaction fees, allowing them to potentially pass these savings on to customers.
- Supporting crypto payments facilitates wider acceptance.
- Customers benefit from secure, encrypted transactions.
Disadvantages
- Only a limited number of businesses accept direct crypto payments.
- Each business may have different transaction procedures to follow.
Did you know? Cryptocurrency ownership in the US has increased to 40% of adults, up from 30% in 2023. This means approximately 93 million Americans now own cryptocurrency.
Using crypto debit cards
Advantages:
- Crypto debit cards offer flexibility.
- These cards often include free ATM withdrawals and rewards.
Disadvantages:
- Crypto debit cards from different providers vary significantly; terms vary, so you need to review the details of each card.
Crypto gift cards
Advantages:
- Gift cards are a thoughtful gift for friends, family or colleagues.
- They offer an easy way to convert crypto into products or services.
Disadvantages:
- Gift cards are limited to specific retailers and may have expiration dates.
- Charge fees for converting cryptocurrency to gift cards.
- There is a risk of scams or phishing attacks, especially when purchasing or redeeming gift cards online.
- Users may face technical difficulties that could delay or complicate the transaction process.
Major brands accepting Bitcoin payments in 2024
Here are some well-known brands taking Bitcoin payments in 2024. While this isn’t an exhaustive list, it does give you some insight into the acceptability of Bitcoin.
Microsoft
Since 2014, Microsoft has enabled users of its online Xbox Store to pay with Bitcoin. Although the company temporarily halted this option due to Bitcoin’s volatility, it has since resumed accepting Bitcoin for Xbox Store credits.
Starbucks
Starbucks lovers can pay for their coffee in cryptocurrency via the Bakkt crypto payment app, which converts Bitcoin, frequent flyer miles and gift cards into US dollars.
Wikipedia
The Wikimedia Foundation, the parent organization of Wikipedia, takes Bitcoin donations via BitPay. This allows supporters to contribute using cryptocurrency, expanding the funding options for the nonprofit organization.
PayPal
PayPal has integrated cryptocurrencies into its platform, enabling you to purchase and sell with Bitcoin and other digital currencies. During the checkout, you can spend your Bitcoin at more than 26 million merchants worldwide to buy apparel, electronics and more.
McDonald’s
McDonald’s started accepting Bitcoin in El Salvador in 2021, when the country adopted it as legal tender. In 2022, McDonald’s locations in Lugano, Switzerland also began accepting Bitcoin as part of the city’s initiative to become a European crypto hub. As cryptocurrencies gain popularity, other branches of McDonald’s may also begin accepting Bitcoin.
AT&T
With the launch of BitPay, AT&T became the first significant US mobile carrier to accept Bitcoin payments for bill payments.
Whole Foods
Thanks to a partnership with the SPEDN app, Whole Foods Market now accepts Bitcoin payments. You can purchase fresh produce, meat, fish, cosmetics and basic groceries.
CheapAir
Online travel company CheapAir started accepting Bitcoin through Coinbase and then switched to BTCPay Server to continue processing Bitcoin payments.
Home Depot
The biggest home improvement store in the United States, Home Depot accepts Bitcoin as payment for equipment, supplies and services. The store integrates Bitcoin payments via the SPEDN app on the Flexa Network to streamline crypto transactions, enabling you to purchase home appliances, garden tools, smart home products, building supplies and more.
Shopify
In 2020, Shopify partnered with BitPay, Coinbase and CoinPayments, providing Shopify vendors with new digital payment options.
Twitch
Game broadcasting website Twitch, owned by Amazon, takes Bitcoin in exchange for services. Twitch temporarily disabled its crypto payments option before reenabling it a few months later.
Virgin Airlines
Bitcoin can be used by clients of Virgin Galactic, owned by Richard Branson, to pay for space flights. It is one of the few businesses that take Bitcoin for such expensive products.
Namecheap
A provider of domain name registration services, Namecheap, began accepting Bitcoin in 2013. Its tech-savvy clientele advocated for a crypto payment feature, which ultimately led to the decision.
Dallas Mavericks
The Dallas Mavericks NBA franchise accepts Bitcoin as payment for club products and game tickets through BitPay. You could pay directly from your crypto wallet, making it a seamless experience like any other method of payment.
Travala
Travala allows you to pay for your stay in Bitcoin using its blockchain-based platform. You need to choose “Cryptocurrency” as your chosen payment method at the checkout stage to complete the transaction.
There are many more prominent companies in various domains that accept BTC payments. These include Gyft (buy and sell gift cards online), NewEgg (electronics and computer technology), The Archive of the Internet (nonprofit digital library internet archive), The Pirate Bay (online index of digital content), 4Chan (imageboards), ExpressVPN (virtual private network providers), AMC (movie theater chain) and more.
Did You Know? The Central African Republic became the second country, after El Salvador, to adopt Bitcoin as legal tender in April 2022.
Regional adoption of Bitcoin payments
The adoption of Bitcoin varies greatly in various regions of the globe. Each region has its own pace of regulatory evolution and economic conditions, influencing the adoption of Bitcoin.
North America
The United States is the leader in the region when it comes to the acceptance of Bitcoin, thanks to tech-savvy users and big businesses such as Whole Foods, AT&T and AMC Theaters accepting crypto payment through third-party apps. As the regulatory ecosystem for crypto evolves, this trend is likely to gain strength.
The outlook for cryptocurrency regulations is increasingly positive in the US, with many expecting a softening of regulations after the US presidential elections in 2024. Republican candidate Donald Trump is known for his pro-crypto stance, while Democratic candidate Kamala Harris has promised to establish a clear regulatory framework for the crypto market. This indicates a change from the more stringent stance adopted during the Biden administration.
Europe
Germany recognizes Bitcoin as legal tender, while Switzerland’s Crypto Valley is a hub for blockchain innovations, making these countries ahead in BTC payments. With the Markets in Crypto-Assets (MiCA), the regulatory environment in Europe is taking a definite shape, which should boost BTC payments in other countries as well.
Latin America
Economic instability in Venezuela and Argentina has fueled Bitcoin adoption, offering a hedge against inflation and currency devaluation. For cross-border transactions and everyday payments, businesses and regular people in Latin American countries are increasingly using Bitcoin.
Asia
Japan and South Korea are frontrunners in Bitcoin adoption, supported by regulatory frameworks that encourage its use, particularly in retail and gaming. Crypto payments in Singapore surged in 2024, reaching nearly $1 billion in the second quarter.
Why is due diligence important in BTC payments?
When making a Bitcoin payment, be cautious to maintain security and prevent fraud. As Bitcoin transactions are irreversible, sending money to the wrong address or to a fraudulent company may result in a permanent loss. You need to ensure the recipient is legitimate and the wallet address is correct before confirming the transaction information.
Because Bitcoin payments may not be as stringently regulated as the fiat payments in the jurisdiction you’re transacting, it’s important that you do adequate research before spending Bitcoin. Above all, due diligence protects your funds by highlighting potential issues like scams, frauds, dubious suppliers or wrong wallet addresses.