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Ready to cut through traditional banking barriers and dive into the world of crypto payments? From buying falafels at your local cafe to luggage from a store in Japan, crypto payments are fast, cost-effective, and easier than you can imagine.
In this guide, we will walk you through exactly how to pay with crypto - from opening your account to making your first transaction. By the end, you'll have the confidence to make crypto payments anywhere, anytime.
Is paying with crypto legal?
Let's address the elephant in the room first. Paying with crypto is legal in most major markets, including the United States, the European Union, Canada, and the UK. However, some countries, like China and India, have restrictions on crypto transactions.
Here's the global snapshot:
- Fully legal: US, EU, UK, Canada, Australia, Singapore, Switzerland
- Restricted or banned: China, India (limited use), Russia (complex regulations)
- Grey areas: Some developing nations with evolving frameworks
Why does this matter? Operating within legal boundaries protects you from compliance issues and ensures your transactions won't be flagged or reversed. Rest assured, Tap only operates in jurisdictions where crypto payments are fully compliant.
How crypto payments work
Think of crypto payments like sending an email instead of traditional mail. With email, your message goes directly from your computer to the recipient's inbox through the internet.
Similarly, crypto payments travel directly from your cryptocurrency wallet to the merchant's wallet through a blockchain network - no banks or financial middlemen required.
Here's what happens behind the scenes:
- Your payment gets recorded on a decentralised ledger (blockchain)
- Multiple computers verify the transaction
- Once confirmed, the payment is permanent and irreversible
- The entire process typically takes minutes, not days
This system eliminates the need for banks, reduces fees, and works 24/7 globally.
Common payment methods
There are several ways to pay with crypto, each suited for different situations. Here are the two most popular:
On-chain wallet transfers involve scanning a QR code or copying a wallet address to send payments directly from your wallet to theirs. This method works well for peer-to-peer transactions and in-store payments. As a side note: Tap users can enjoy free transfers between users, anywhere in the world.
Tap’s crypto-backed debit card lets you spend your crypto anywhere Mastercard and Visa are accepted. The card automatically converts your crypto to fiat at the point of sale.
Setting up your Tap account
Here’s how to get started:
- Download the app and create your account.
- Complete the quick identity check.
Since Tap is licensed and regulated, we ask for some basic verification - just like any trusted fintech app. It only takes a few minutes. - Once you're approved, you're in.
You’ll be ready to explore the crypto world.
Order your Tap card
Tap the “Card” tab in the app (between Hub and Cash), and follow the steps to order your card. It’ll arrive in a few days, depending on where you are.
Now all you need is crypto.
Topping up your wallet is simple.
To load fiat (USD, EUR, GBP, AUD, CAD, CHF, JPY), tap “Cash” in the top menu and hit the black “Add Money” button. Choose your preferred method and follow the instructions.
If you already have crypto, select Cryptocurrencies from the top menu, Add Money, and then the last option (Crypto Deposit). It’ll take a few minutes to clear (depending on the network).
When your card arrives, move funds to the Card section of your wallet, and you’re all set.
Step-by-step: how to make a crypto payment with Tap
Ready to make your first crypto payment? Let’s get stuck in:
Step 1: Take your Tap card out of your wallet.
Step 2: Swipe or tap at the merchant.
That’s it. Couldn’t be simpler.
Making a crypto payment through the app
If you don’t have a card or are waiting for it to arrive, here is the alternative option:
Step 1: Go to the “Cryptocurrencies” section of the app.
Step 2: Tap on “Send”.
Step 3: Choose “Crypto Withdrawal”.
Step 4: Pick the crypto you’d like to use.
Step 5: Tap the blue + New icon in the upper right corner.
Step 6: Choose “External Beneficiary” and carefully enter the wallet address.
Step 7: To complete the transfer, select the Beneficiary you just added and initiate the transfer.
Most payments are confirmed within minutes, though some networks may take longer during high-traffic periods.
Converting crypto to fiat & using crypto cards
Not every merchant accepts crypto directly, but that doesn't limit your spending power. Tap offers seamless conversion options that bridge the gap between crypto and traditional payments.
Our instant conversion feature lets you convert crypto to fiat currencies within your Tap account. Simply select the amount you want to convert, choose your target currency, and confirm the transaction. The converted funds appear in your fiat balance immediately.
The Tap Card takes this further by allowing you to spend crypto anywhere Mastercard and Visa are accepted. When you make a purchase, the card automatically converts the required amount from your crypto balance to fiat at competitive exchange rates. You can use it for online shopping, in-store purchases, or ATM withdrawals globally. Simply load the money onto your card through the app, and we’ll handle the rest.
Conversion happens in real-time, so you always get current market rates. *For real-time FX rates, click on your profile picture on the homepage and scroll down to “FX Calculator".
Fees, speeds & network choices
Understanding fees helps you make cost-effective payment decisions. There are two types of fees to consider:
Network fees go to blockchain validators who process your transaction. These vary by network and have nothing to do with Tap.
Bitcoin during peak times might cost $10-50, while networks like Polygon often cost under $0.01. Lightning Network Bitcoin payments typically cost less than a penny.
Tap fees are transparent and competitive. We charge a small percentage for conversions and premium features, but basic payments between Tap users are free.
Confirmation times depend on your chosen network:
- Lightning Network: Instant
- Ethereum: 1-5 minutes
- Bitcoin: 10-60 minutes
- Polygon: Under 1 minute
Best practice: For small, everyday purchases, use fast, low-cost networks like Lightning or Polygon. For larger transactions where security is important, Bitcoin's main network offers maximum security despite higher fees.
Security & common pitfalls
Crypto payments are irreversible, making security crucial. Here are the main risks and how to avoid them:
Wrong addresses are the top cause of lost payments. Always double-check recipient addresses and use QR codes when possible. Try to avoid typing wallet addresses manually unless necessary.
Phishing attacks trick users into entering wallet details on fake websites. Always bookmark legitimate sites and verify URLs carefully. Do not follow links from emails or text messages.
Rug pulls and scam projects promise unrealistic returns. Stick to established cryptocurrencies and verified merchants when making payments.
Tap's built-in safeguards include two-factor authentication and automated AML checks that flag suspicious transactions.
Tax & reporting considerations
Here's something many users overlook: spending crypto is a taxable event in most jurisdictions. When you use crypto to buy goods or services, you're technically selling that crypto, which may trigger capital gains tax.
How it works: If you bought Bitcoin at $30,000 and spent it when Bitcoin was $40,000, you owe tax on the $10,000 gain, even though you used it for a purchase rather than selling for cash.
Record-keeping is essential. To stay on the safe side, keep records of your transactions that include purchase dates, sale dates, amounts, and calculated gains or losses.
Regional differences matter:
- United States: IRS treats crypto spending as taxable events with capital gains implications
- European Union: VAT applies to crypto purchases, but capital gains treatment varies by country
- Other regions: Consult local tax advisors as regulations continue evolving
We recommend consulting with a crypto-savvy accountant to ensure you’re on the right side of your local tax obligations.
Why choose Tap to pay with crypto
We've built Tap specifically to solve the pain points of crypto payments. Here's what sets us apart:
Instant settlement means merchants receive payments immediately, not after blockchain confirmations. This solves the biggest barrier to crypto adoption for businesses.
Multi-chain support lets you use Bitcoin, Ethereum, stablecoins, and 60+ other cryptocurrencies through a single platform. No need to manage multiple wallets or apps.
Built-in compliance handles KYC/AML requirements automatically, so you can focus on payments rather than paperwork. We operate within regulatory frameworks.
Global reach without the complexity of international banking. Accept payments from anywhere, settle in your preferred currency, and expand your market instantly.
Ready to start paying with crypto? Download the Tap app and join the future of digital payments.
This article is for general information purposes only and is not intended to constitute legal, financial 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.
