The beta version of Binance Pay was announced a few days ago.
This is a contactless cryptocurrency payment technology designed by Binance.
From the presentation, it appears that it has several things in common with PayPal, so much so that it can be said that Binance was probably inspired by the latter to design it.
Binance Pay will allow users to pay and receive payments in cryptocurrencies from friends and family around the world.
In order to use it, it will be necessary to have a account on Binance.com, download and install the App. This will allow the user to create a unique nickname that will allow other users to easily send cryptocurrencies.
The Binance Pay wallet will initially support six currencies, namely Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Swipe (SXP), BUSD, and EUR.
The fact that it is also compatible with the euro and the BUSD stablecoin, which is pegged to the US dollar, suggests that it could also be used in place of PayPal.
After all, these six cryptocurrencies are the same ones that are already supported by the Binance Card, the exchange's debit card launched last year, which allows cryptocurrencies to be spent in fiat currency on the Visa circuit.
In fact, Binance Pay can also be recharged from the exchange's cash wallet. Furthermore, the Binance Pay wallet is essentially the same as that of the Binance card.
The application will also be equipped with a QR code which allows funds to be sent directly between two Binance Pay accounts.
The differences between Binance Pay and PayPal
The similarities to PayPal are many, but there is a substantial difference.
In fact, although PayPal now allows buying and selling cryptocurrencies, does not yet allow the receipt or sending of tokens, which can only be bought, stored and sold. By the end of March, the crypto-fueled fiat currency payments feature will also be enabled, but in that case, the recipient's receipt will be in fiat currency.
On the contrary, Binance also allows to receive and send cryptocurrencies directly.
The ultimate goal would be provide a dedicated service in particular to merchants and those who want to get paid in cryptocurrency payments, but it is still too early to understand if this will really happen. Especially since challenging PayPal from this point of view seems like an impossible task, unless direct payments in cryptocurrencies become very widespread.