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Binance Silently Launches Binance Pay, Its Answer to Paypal

The crypto exchange has recently launched a beta version of Binance Pay. The event quietly took place at Binance Blockchain Week last Friday.

Binance is the largest crypto exchange by trading volume in the world, and, according to the latest events, the exchange doesn’t want to limit its activities only to having people purchase Bitcoin and other crypto coins. 

It wants people to actually use their cryptocurrency since, as Binance CEO Changpeng Zhao said, “payments is one of the most obvious use cases for crypto.”

That’s why the exchange took one step further and created Binance Pay. Although the system is currently in a beta version, it allows users to “ to pay and get paid in crypto” from their friends and family worldwide since it is “a contactless, borderless and secure cryptocurrency payment technology.”

Getting Here Wasn’t Easy 

However, reaching this point wasn’t a smooth road. One of the greatest challenges is for merchants to have the required systems to accept currencies that most customers don’t use. While accepting credit and cash is not an issue since people use them on a regular basis, things change when it comes to crypto-based transactions.

The Binance Pay system was designed to allow users to pay using cryptocurrency. The novelty is that merchants receive fiat-backed stablecoins that can then be converted into fiat, namely in euro, as this is the only fiat type supported at the moment. According to Changpeng Zhao, the system was built this way in order to prevent the merchants’ business from fluctuating with crypto.

Considered Binance’s answer to PayPal, Binance Pay currently supports five cryptocurrencies, including Bitcoin, Ethereum, Binance Coin (BNB), and BUSD stablecoin. SXP tokens from Swipe can also be used to pay. 

Ease of use was also a significant factor when designing this system as funds can be transferred using the in-app QR code scanner, so there is no actual card. 

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