What can you buy with Bitcoin?

"What can you buy with Bitcoin?" is an interesting question given the increase in popularity of Bitcoin payments. But first, it's important to understand the different ways you can pay with Bitcoin.

1. Bitcoin debit cards

There are several ways you can buy with Bitcoin. First, one of the easiest is to use a Bitcoin debit card, which lets you buy goods and services using Bitcoin or any other supported cryptocurrencies. In exchange, the merchant receives fiat currency, like US Dollars or Euros. Various providers offer crypto debit cards, offering you enhanced flexibility for your spending.

But, if you are looking for an even more flexible debit card that lets you use USD or Bitcoin, you should consider the Xapo Bank debit card. You can use it to pay in USD or Bitcoin worldwide and it also offers up to 1% cashback** on all card transactions.

How does it work? You want to make a card payment with your Xapo Bank debit card but don’t have enough USD? No worries, we automatically convert the amount of the payment into USD from your Bitcoin wallet balance. So you will be able to cover the payment with Bitcoin, even if the merchant does not directly accept it.

What can you buy with Bitcoin using the Xapo Bank debit card? Pretty much anything. Since we automatically convert Bitcoin to USD when making a card payment, this means that you can use BTC to pay for all of your card payments if you want to–from restaurant dinners to your Netflix subscription.

Discover more about the Xapo Bank debit card.

2. Lightning Network payments

Second, you can make Bitcoin payments using the Lightning Network. In fact, Bitcoin payments have become more and more adopted, mainly thanks to the democratisation of the Lightning Network. The Bitcoin Lightning network allows you to make cost-effective and fast Bitcoin payments for your everyday spending.

What is the Lightning network?

The Lightning Network is a layer 2 protocol that sits on top of the Bitcoin blockchain. As such, it enables fast, low-cost transactions and allows users to transact directly without the need for each transaction to be recorded on the blockchain. Thus it makes the transactions significantly faster and cheaper.

Did you know that Xapo Bank was the first bank to ever integrate the Lightning Network? We allow our members to make Lightning Network payments of up to $100 per transaction for a fixed cost of 0.00000015 BTC (around $0,01)*** right from the Xapo Bank app.

What can you buy with Bitcoin using the Lightning Network? At Xapo Bank, you can use the Lightning Network to pay for your daily transactions of up to $100 at any merchant who accepts it. You would usually be able to use it to pay both online and in-store by scanning a QR code.

3. Bitcoin wallet

Then, you can also pay in Bitcoin using your Bitcoin wallet. Today, more and more merchants accept Bitcoin as a payment method online, such as Paypal, Starbucks, Microsoft and many more. To pay with Bitcoin online directly, you would first need to send BitcoinTC from your wallet to the merchant’s wallet.

How can you pay with Bitcoin using your Xapo Bank wallet?

• Tap Send on your Wallet tab
• Tap Bitcoin Address
• Scan the QR code or enter the wallet address from the merchant
• Review and confirm the transaction

Once you confirm the transaction, it usually takes 10 minutes for the Bitcoin to arrive at the destination wallet.

Yes, you can pay your bills with Bitcoin if the merchant accepts Bitcoin.

The Xapo Bank debit card gives you even more flexibility to pay with Bitcoin, as your US Dollar and Bitcoin accounts are linked to your card. This means if you don’t have enough USD to make a card payment, the amount of the payment will be automatically converted from your Bitcoin wallet balance, and the payment will be made, even if the merchant does not directly accept it.

Open a Xapo Bank account and start making more of your Bitcoin.

This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.

* The Annual Interest Rate offered on both USD and Bitcoin deposits is variable and may change at any time. Please see our Interest FAQs for more information. Interest on Bitcoin deposits will only be paid on balances of 5 BTC or less. For more information, visit our Help Centre. Interest on both USD and BTC is currently paid in Satoshis. We may instead choose to pay it in any other supported currency or currencies (fiat and/or crypto) from time to time.

** Please note that some merchant categories are excluded from earning cashback. Please see our Xapo Bank card FAQs for more information.

*** US $0.01 at the time of writing. Subject to change.