Do you receive your salaries in stablecoins? Are you a crypto trader? Do you want to experience how convenient it is to pay with crypto? Whatever the case for you, this article will teach you how to pay with Tether (USDT)—the most popular stablecoin in the market—whether for shopping, booking trips, dining out, or other daily transactions.
What is USDT?
USDT is a stablecoin pegged to a traditional currency, the U.S. dollar. Since it’s a stablecoin, it doesn’t experience significant price fluctuations like other cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), etc.
USDT is now one of the most commonly traded cryptocurrencies in the crypto space and has the third largest market capitalization in the crypto market. This stablecoin was launched by Tether Limited in 2014, a company that originally emerged from the exchange Bitfinex.
Top 5 Benefits of Using USDT Payments
Some of the reasons people enjoy USDT payments are as follows:
1. Speed and Efficiency
USDT payments are processed quickly, making them more efficient than traditional payment methods which can take days to clear, especially for international transactions.
2. Lower Service Fees (Sometimes Even Free)
USDT service fees are generally lower than those associated with conventional banking systems, particularly for cross-border payments. On some payment platforms, it’s even free! For instance, with crypto wallet Ka.app, sending crypto and euro to other Ka.app users is completely free of charge. It only takes a few seconds also.
3. Accessibility
USDT is one of the most widely accepted cryptocurrencies across merchants, crypto exchanges, and payment platforms, making them easy to buy, sell, and use for payments.
4. Stability
Again, USDT is pegged to the US dollar. It offers a more stable medium of exchange compared to other cryptocurrencies. This makes USDT an attractive option for those looking to avoid rapid price fluctuations that are common in the crypto market.
5. Security and Transparency
All USDT transactions are recorded on a blockchain, which offers transparency and enhanced security. Blockchain’s immutable nature means that once a transaction is recorded, it cannot be altered or tampered with.
4 Common Ways of Paying with USDT
The crypto niche is rapidly evolving, introducing various innovative ways to pay someone with crypto, including USDT. Here are some of the most convenient methods available today:
1. Crypto Debit Cards
A crypto debit card provides you an effortless way to pay with USDT and other crypto, usually by converting your tokens to a traditional currency first, then using the card like how you would use a bank card.
For instance, with the Ka. Debit Card, you can easily convert USDT into euros (EUR) and use the card for both in-store purchases and online shopping. These cards are not only cost-effective, but also simple to reload, especially when using a beginner-friendly crypto wallet like Ka.app.
2. Crypto Wallet Transfers
If you don't own a crypto debit card, another efficient way to pay with USDT is through direct wallet transfers. This method involves obtaining the wallet address of the merchant or recipient to whom you want to send your payment, and then transferring USDT directly from your own wallet.
On Ka.app, crypto transfers are quick, allowing you to send funds within seconds from any supported country. As mentioned above, USDT transfers to other Ka.app users are free of charge.
3. Crypto Payment Gateways
To accommodate customers who prefer to use crypto, some merchants have teamed up with crypto payment gateways or have integrated these services into their payment systems. Typically, this involves selecting crypto or USDT as your payment method at checkout. The gateway then provides a payment or wallet address where you can send your USDT payment.
Merchants have the flexibility to retain the entire payment in USDT or convert it into a traditional currency, depending on their preference and the features offered by the payment gateway.
4. Crypto Gift Cards
Crypto gift cards can be a nice way to pay with USDT without requiring direct acceptance by merchants. You can buy them from various platforms that convert USDT holdings into gift card credits.
When you buy a gift card, your USDT will be converted into a traditional currency and loaded onto the card. You can then use these credits to shop at any online or physical store where the cards are accepted.
How to Pay with USDT Using the Ka. Debit Card
Are you leaning towards making USDT payments using a crypto debit card? Here’s how you can do it using the Ka. Debit Card:
1. Order the Card
- Sign Up or Log In: Start by signing up or logging into Ka.app.
- Activate the Cash Feature: Navigate to the Cash feature within the app and activate it.
- Order Your Card: Select ‘Order Card,’ agree to the Terms & Conditions, enter your delivery address, and confirm your order.
- Delivery: Your card will arrive within 5-10 business days.
2. Activate the Card
- Access Your Account: Log into Ka.app.
- Activate: Click or tap ‘Activate Card’.
- Set PIN: Choose a PIN code for your card.
- Enter CVC: Input the 3-digit CVC from your card.
- Completion: That’s it! Your card is now active and ready to use.
3. Top Up Your Card
Adding funds to your Ka. Debit Card can be done in several ways:
- Bank Transfer: Transfer EUR from your bank account to your crypto IBAN within the app.
- Convert USDT: Convert your USDT holdings into EUR.
- Deposit from External Wallet: You can also deposit USDT from an external wallet and then convert it to EUR.
4.1 Use the Card for Online Payments
- Shop Online: Visit your favorite merchant’s website and fill your cart.
- Checkout: At checkout, select Visa as your payment method.
- Enter Card Details: Provide your card details and confirm the transaction.
4.2 Use the Card for In-Store Transactions
- In-Person Shopping: Visit a physical store and select the items you wish to purchase.
- Payment: At the payment counter, either insert or tap your card on the POS terminal to complete the transaction.
Note: Currently, the Ka. Debit Card is only available to users within the European Economic Area (EEA).
How to Pay with USDT Using Ka.app
Meanwhile, if you prefer to transfer your payment directly to the merchant’s wallet address, here’s how you can do it with Ka.app:
1. Sign Up or Log In: Start by signing up or logging into Ka.app.
2. Buy USDT: Get USDT by depositing EUR into the app through your crypto IBAN and then converting EUR to USDT.
3. Send USDT: Go to your USDT portfolio and then tap/click ‘Withdraw.’ Enter the wallet address of the recipient, the amount you’d like to send, and confirm the transfer.
Final Thoughts
As a stablecoin, USDT offers a unique combination of crypto innovation and traditional currency stability, making it an appealing payment method for both consumers and merchants. Its adoption in various sectors, from online shopping to international remittances, underscores its growing acceptance and potential to simplify complex financial tasks.
Disclaimer: This article was written for educational purposes only and should not be taken as financial, investment, or legal advice. Buying crypto carries considerable risks due to market volatility, including the possible loss of your funds. Please conduct research, evaluate your financial circumstances, and understand your risk tolerance before making any investment decisions.
FAQs
What is a USDT Payment?
Crypto payments are generally getting more attention these days, mainly due to their speed, security, cost-effectiveness, and convenience. As its name suggests, a USDT payment is any type of transaction made using USDT as the payment method.
Can I convert USDT back into EUR on Ka.app?
Yes, you can convert USDT back to EUR on Ka.app. You can do it by opening your USDT portfolio, clicking/tapping ‘Convert,’ choosing USDT to EUR, and entering the amount of transaction.
How fast are USDT transactions?
The speed of USDT transactions can differ based on the platform you're using. Transferring USDT via Ka.app typically takes only a few seconds.
Is paying with USDT safe?
Yes, paying with USDT is generally safe because blockchain technology secures transactions and effectively protects them against fraud. However, it’s best that you also follow security measures to protect your transactions. These include using a crypto debit card or wallet with robust security measures, using strong PINs or passwords, activating two-factor authentication (2FA), and only engaging with trustworthy platforms.
