Why and how to pay with USDC- a quick guide!
Technological developments bring advanced tools to the business industry in every aspect. Currently, the most agile domain is payment and transactions. With the dawn of cryptocurrency, the payment methods of people and businesses are changing. Blockchain payments are taking the world by storm because of their high efficiency and minimum time of transaction. One of the most famous among all is the USDC payment. Small businesses accept payments in USDC forms as they are backed by dollars and offer higher stability. USDC has also become quite popular among everyday users as a payment method. However, several people are still new to this stablecoin and have little information about its functioning. This recent change in the transactional function of the business industry compiles us to understand more about USDC payment. So in this blog, we will talk about USDC and its blockchain payment operations. We will also answer one of the most common questions- how to pay with USDC?
Understanding USD Coin
USDC or USD coins is a type of cryptocurrency that gets complete back up from the U.S. dollars and the assets denominated by dollar. Such backing assets for the USD can be U.S. Treasury security. The reserve assets of USDC are stored in different accounts of U.S. financial institutions. These accounts are also regularly attested and monitored to ensure their proper currency flow. The Grant Thornton firm executes this responsibility.
Now, how can USDC balance the 1:1 peg with U.S. Dollar? The functioning of the USDC generation is done per the user's paid fiat currency. When a user buys a USDC and pays the required fiat currency, a USDC is generated, and the paid amount gets in the form of one U.S. dollar. Similarly, when the user exchanges or sells the USDC in return for fiat currency, the USDC is burnt equal to the value of dollars, and the fiat currency is deposited in the user's bank account again.
USDC proffers a wide range of compatibility with different blockchains. It is also one of the reasons that USDC is finding extensive utilization in different aspects of the industry. For example, USDC can work with Ethereum, the world's second-largest cryptocurrency. It is also a compatible blockchain payment compatible with Solana, TRON, and Stellar.
Why should you pay with USDC?
Now the question arises why USDC? You can find several other blockchain payment mediums, then why choose only USDC. The answer is far more than just fast and efficient payments. USDC is a stablecoin that helps combat the fluctuating volatility in the crypto world. Here, we are discussing the reasons why you should pay with USDC.
Allows multi-border payments
Globalization has reduced the gap between different businesses in faraway locations of the world. However, the payment domain hasn't developed much. Even today, fiat currency takes several days to process a cross-border payment. Moreover, it charges a high transaction fee as several exchange barriers come into play. This not only slows down the process of payment but decreases the overall efficiency of the businesses. However, with USDC, these payments can be made in second with very few transaction fees. Such payments with USDC are called remittances and can be done anywhere to anyone with a crypto wallet.
VISA
One of the most crucial reasons to pay with USDC is its wide acceptability. Recently, VISA has announced that they are providing a card that will also support USDC stablecoin payments. Such measures increase faith in this blockchain payment medium.
High Transaction Speed
High transaction speed is one of the most valuable advantages of paying with USDC. You can execute any transaction to a person with a crypto wallet in just a few seconds. This reduces the time-consuming processing of transactions and enhances resource optimization for businesses.
Combat Volatility
When you make payments with USDC, you can also defy the frequently fluctuating volatility of the crypto world. This offers a hedge against cryptocurrency's volatile nature and safeguards money's value by offering a much more stable form of payment.
Staking of USDC
USDC also offers a stake to offer good APY, which comes with a 2 to 2.5% ballpark. Users can also trade it on DeFi platforms, giving network fees in high proportion.
Wide compatibility
USDC comes with high compatibility with different crypto ecosystems. It can be used for transactions in Ethereum, Solana, TRON, etc. In addition, you can use it to buy different types of cryptocurrencies.
How to pay with USDC?
The process of payment with USDC or making transactions is relatively easy. It is one of the easiest ways of executing cryptocurrency payments. The process is comprised of three easy steps;
- Register your account or wallet
When you have decided to pay through USDC blockchain payment, then now it's your turn to register your wallet account in an affiliated platform. First, you need to open your crypto wallet, which works similarly to your fiat accounts. This wallet will help you accept and send your USDC crypto payments.
- Invest in some USDC
Now the next step is to deposit some USDC in your account. After that, you can directly buy some USDC, which will show in your wallet after integration. This deposit will work similarly to the bank balance you use to pay for fiat transactions.
- Scan or enter the payment address of receiving wallet
At last, when you want to pay through USDC, scan the code or enter the address of the respective crypto wallet in your account. Now in the next window, you need to enter the amount to be transacted, followed by your security pin. The transaction will be done in no time.
USDC is one of the best ways of executing crypto payments for your business. However, many people are still stuck with the question of how to pay with USDC? The above blog helps in understanding the outline of executing USDC blockchain payments.