Cryptocurrency exchanges are now offering different ways to purchase Bitcoin (BTC) using Apple Pay, a move that could boost Bitcoin adoption. Apple Pay is a popular digital wallet with over 507 million mobile wallet downloads and a dominant market share of 43.5% in the US mobile payments market.
This integration of Apple Pay with Bitcoin opens up new opportunities for iPhone users. This article provides a guide on how to buy Bitcoin and other cryptocurrencies using Apple Pay.
What is Apple Pay?
Apple Pay is a mobile payment service introduced in 2014 that allows users to make web payments using iOS. It is primarily used as an application on iPhones and Apple Watches, enabling users to easily pay for music, movies, and apps with a single touch.
With the introduction of Near Field Communication (NFC) technology, offline stores now accept Apple Pay, leading to an increase in contactless payments. NFC is a wireless connectivity technology that uses magnetic fields to enable communication between devices when they are brought close to each other. Apple Pay is supported by thousands of apps and offline stores worldwide, allowing users to purchase goods and services, as well as buy Bitcoin, with their iPhone and Apple Watch using NFC.
Various Ways to Buy Bitcoin with Apple Pay
While Apple itself does not have direct integration with Bitcoin or cryptocurrencies on its devices, there are several popular applications and platforms that facilitate transactions and transmissions of cryptocurrency. Here are the various ways to buy Bitcoin using Apple Pay.
Buy Bitcoin with Apple Pay through Coinbase
Coinbase is a US-based cryptocurrency trading and investment platform that offers a range of services, including buying, selling, exchanging, and storing cryptocurrencies. Coinbase has been expanding its presence in the cryptocurrency space through partnerships with major companies like Visa and Mastercard, allowing users to make instant purchases with credit and debit cards.
To provide a more convenient option for iOS users, Coinbase introduced the ability to purchase Bitcoin using Apple Pay linked to a debit card. However, selling crypto and cashing out options are not available with this method yet.
Steps to Buy Bitcoin using Apple Pay on Coinbase:
1. Log in to your Coinbase account on the website or app using a device that supports Apple Pay.
2. Select Bitcoin from the list of available cryptocurrencies.
3. Enter the desired amount of Bitcoin to be purchased in the “Buy BTC” option.
4. Choose Apple Pay as the payment method.
5. Confirm the Bitcoin purchase using Apple Pay.
It is important to note that Apple Pay will automatically appear as a payment option if a Visa or Mastercard debit card is linked to the Apple Pay digital wallet. If not, users must link their debit card to Apple Pay before following the above steps. The limit to purchase BTC using Apple Pay on Coinbase depends on the debit card’s transaction limit and Coinbase’s limits, which may vary based on policy, geographical region, and location. Users can check these limits in the Coinbase app settings. Other cryptocurrencies like Ethereum (ETH), Litecoin (LTC), and Ripple’s XRP (XRP) can also be purchased using Apple Pay on Coinbase.
Buy Bitcoin with Apple Pay on Binance
Binance initially introduced Apple Pay integration for buying cryptocurrencies using credit and debit cards for citizens of the United Kingdom and the European Economic Area (EEA). In December 2022, Binance announced Apple Pay (for debit cards only) to deposit USD and purchase crypto for US account holders.
This allows not only the purchase of Bitcoin but also crypto investments using Apple Pay on Binance.
Steps to Buy Bitcoin using Apple Pay on Binance:
1. Log in to the Binance app on your iOS device.
2. Click on “Wallet,” select US dollar, and deposit USD.
3. Click “Add Payment Method” and add Apple Pay.
4. Enter the amount of USD and tap “Deposit.” Select Apple Pay as the chosen payment method.
5. Proceed to purchase BTC or other cryptocurrencies with this deposit.
It is important to note that Apple Pay for the US only works for debit card integrations, while for the UK and EEA, a credit card is an additional option. There is a 3.75% fee applied to the deposit amount when using Apple Pay in the US and approximately a 2% fee per transaction in the UK, subject to change based on policy. Users must check fee changes on the exchange they transact with.
Buy Bitcoin with Apple Pay on BitPay
BitPay is the largest Bitcoin and cryptocurrency payment service provider based in Atlanta, Georgia. It allows businesses, merchants, and institutions to accept cryptocurrency payments and convert them to fiat currencies. BitPay gained popularity for charging merchants a flat 1% transaction fee, compared to credit cards that often charge higher fees.
BitPay added Apple Pay as a payment option in 2021, allowing users to buy, exchange, and shop with BTC and other cryptocurrencies using the Apple Pay digital wallet. While in-app crypto purchases are not yet available, contactless crypto purchases using NFC are possible in-store and online using Apple Pay on supported devices.
In addition to Bitcoin, BitPay also supports popular stablecoins like USD Coin (USDC) and BinanceUSD (BUSD) for Apple Pay purchases. Users need to add their BitPay crypto debit card to Apple Pay and can then use Bitcoin to make purchases wherever Apple Pay is accepted globally. BitPay partnered with Simplex and Wyre to enable these Apple Pay payments.
Steps to Buy Bitcoin using Apple Pay on BitPay:
1. Log in to the BitPay app.
2. Load BTC onto your BitPay debit card.
3. Add the BitPay Card to Apple Pay in the BitPay App.
4. Use the BitPay card BTC funds to make purchases using Apple Pay.
Buy Bitcoin with Apple Pay using MetaMask
MetaMask, the Ethereum cryptocurrency wallet provider, now allows users to purchase cryptocurrencies via Apple Pay. MetaMask announced its Apple Pay support in April 2022. Since this is not a direct integration with Apple, MetaMask users are redirected to Wyre to make payments via credit/debit card or through Apple Pay. Wyre is a cryptocurrency exchange that offers crypto to fiat conversion via API and integrates with Apple Pay.
MetaMask allows its Apple Pay users a maximum daily deposit limit of $400 into their wallet and charges a gas fee and its own transaction fees (0.875% of the transaction amount). Purchasing crypto through MetaMask allows users to use it across different decentralized applications (DApps) and Web3 services where MetaMask is available. However, in-store contactless purchases are still not available using this method.
Steps to Buy Bitcoin using Apple Pay through MetaMask:
1. Log in to your MetaMask account on a browser or app.
2. Set up Apple Pay via the app.
3. Ensure Know Your Customer verification on the card connected to Apple Pay.
4. Tap “Add Funds,” click “Buy BTC,” and enter the desired amount.
5. Select Apple Pay as the payment method.
6. Authenticate and complete the transaction.
While the above four methods are well-known, there are many other wallets, exchanges, and platforms where users can buy Bitcoin with Apple Pay, including Exodus, Paxful, CEX.io, Lumi Wallet, Crypto.com, and more. Users should familiarize themselves with the terms, conditions, fees, and other details before selecting their preferred method.
Should You Buy Crypto with Apple Pay?
There is no definitive answer as to whether users should choose to buy Bitcoin and other cryptocurrencies using Apple Pay. However, there are pros and cons to consider.
The advantages include quick, easy, and straightforward transactions. Apple Pay’s contactless payment method technology makes it a popular choice among millennials and Gen Z users in the US. Apple Pay is accepted by 85% of US retailers for fiat payments. This user preference is reflected in the numerous crypto platforms, exchanges, and wallets that offer contactless Apple Pay integrations.
On the other hand, users should be cautious of the risks of scams, hacks, malware, and crypto volatility. Prices can fluctuate frequently, which may affect the value of purchases. Therefore, users should make informed decisions and conduct thorough research before using various crypto payment methods available in the market.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making any decisions.