How to Spend USDC

Among the various digital assets available today, USDC, a regulated digital dollar stablecoin issued by Circle, has quickly become a favorite for those seeking the speed, reliability, and efficiency of blockchain-based payments.

While many people are familiar with buying, trading, holding, or sending cryptocurrencies, spending USDC is becoming an increasingly practical use case. Whether you're shopping online, dining out, or booking a vacation, USDC offers a practical and flexible alternative to traditional payment methods.

Here's everything you need to know about spending USDC, including the benefits, real-world use cases, and step-by-step instructions for getting started.

What is USDC?

USDC is a type of digital currency known as a stablecoin, designed to maintain 1:1 value with the US dollar. Issued by Circle, a regulated¹ global financial technology company, every USDC in circulation is fully backed by US dollars in the form of cash (and highly liquid cash equivalents) held in reserve. This stability makes USDC a reliable digital dollar that combines the benefits of cryptocurrencies—like fast, low-cost transactions and global accessibility—with the confidence of traditional fiat currency.

New to digital dollars? Check out our complete guide to understanding USDC.

Why spend USDC?

Unlike other cryptocurrencies that can be highly volatile, USDC's value remains steady, making it a practical financial tool throughout the full lifecycle of your spending needs — from longer-term planning for important events and large purchases, to shorter-term budgeting for consistently recurring expenses and everyday spending.

But more generally, why might you choose to spend your money with USDC over a fiat currency like USD? There are several good reasons which, in short, boil down to speed, low fees, security, and accessibility.

Fast and low-cost transactions

One of the primary advantages of spending USDC is the speed of transactions. Traditional banking systems can take days to settle payments, especially for international transfers, and transactions only process during banking hours (i.e., excluding nights, weekends, and holidays). USDC transactions, settled on blockchain networks, can occur within minutes or seconds, any time of the day, any day of the year, almost anywhere in the world. This immediacy is beneficial for both consumers that spend USDC and merchants that receive USDC payments in exchange for goods and services around the world.

Blockchain-based transactions also come with lower fees, as they bypass many of the intermediaries involved in traditional payment systems. These intermediaries often impose expensive fees (e.g., credit card interchange fees), which are typically passed on to consumers.

Security and privacy

When you spend USDC, you don't need to share sensitive financial information like bank account numbers or credit card details. This reduces the risk of your personal data being compromised in a breach, and adds an extra layer of security for online and in-person transactions. Blockchain transactions are secured through cryptographic methods, and sending cryptocurrency like USDC to another wallet address (whether it be a peer or a merchant) doesn’t entail exposing sensitive or private information the same way, for example, entering your credit card information on a website does.

Moreover, blockchain technology ensures that transactions are immutable and tamper-proof, meaning once a transaction is confirmed, it cannot be altered or reversed by unauthorized parties. This enhances the security of the transaction itself, reducing the risk of fraud and ensuring your funds reach their intended destination safely.

Global accessibility

USDC is the world’s largest regulated¹ digital dollar, natively operating on more than 15 of the world’s most popular blockchain networks — making it widely accessible to individuals with an internet connection and a digital wallet in over 180 countries. This inclusiveness is especially beneficial for individuals looking to spend stable digital dollars in regions with limited access to traditional banking services.

Where can you spend USDC?

One of USDC’s most exciting use cases is its growing acceptance in mainstream commerce. From retail to travel, a variety of industries are embracing crypto payments, including stablecoins like USDC. Here are just a few ways how you can use USDC across various sectors:

• Retail: Purchase products at retail stores like Home Depot, GameStop, and Chipotle through payment platforms like BitPay, Flexa, or Solana Pay.
• Travel: Book flights, hotels, and activities with vendors like Travala, which integrates crypto payment gateways.
• Entertainment: Pay for movies, sporting events, or even Twitch donations. Streaming services, online gaming platforms, and ticket vendors (like XP) are increasingly accepting crypto, including USDC.
• Technology: Pay for goods and services at tech vendors like Microsoft, Newegg, Dish TV, and ExpressVPN via USDC integrations with BitPay.
• Auto Industry: Companies such as Tesla and other luxury brands periodically explore crypto payments, and platforms like Crypto Autos make vehicle purchases possible using stablecoins.
• E-commerce: Numerous online stores now allow crypto transactions, making USDC a great choice for global shopping without worrying about currency exchange fees.
• Charity: Many non-profit organizations, including Save the Children and The Water Project, accept cryptocurrency donations in the form of USDC and other digital assets.

Global adoption of cryptocurrency payment methods seems poised to increase. A 2022 survey conducted by PYMNTS and BitPay indicated that 46% of merchants have integrated crypto into their mix of accepted payment methods (mostly via integrations with PayPal, Venmo, or BitPay which enable users to pay with crypto). 85% of merchants indicated that they view crypto payments as an avenue for reaching new customers, while 77% cited lower transaction fees as the primary driver for adopting crypto payment methods. With these stats about crypto payment adoption in mind, the utility of a stable digital dollar like USDC is evident and poised for greater global adoption.

How to spend USDC: a step-by-step guide

Spending USDC is a straightforward process that combines the convenience of digital payments with the speed and security of blockchain technology. Here’s how to get started:

1. Set up a crypto wallet

To spend USDC, you’ll first need a crypto wallet to store and manage your funds, either on your own (i.e., a non-custodial wallet) or with the help of a third-party (i.e., a custodial wallet). Your decision to use a custodial or non-custodial wallet should depend on your personal needs and the way in which you want to spend USDC (more on that shortly).

If you’re new to cryptocurrency, you’ll likely make your initial crypto purchases using a centralized crypto exchange, also known as a CEX. These platforms often offer fiat-to-crypto on-ramps for newcomers to purchase crypto with fiat currency like USD, and friendly user interfaces that simplify the crypto trading experience. When you purchase an asset like USDC using a CEX, it will be automatically stored in an exchange-based custodial wallet.

From there, you can choose to move your funds to a non-custodial wallet that gives you sole control over your funds (and sole responsibility for keeping them safe) — in which case you’ll need to take extra steps to set up your non-custodial wallet by following the platform-specific instructions provided by your chosen non-custodial wallet.

Learn more about the different types of crypto wallets and how to decide which is right for you.

2. Acquire USDC

Once you’ve chosen which type of crypto wallet you wish to use, the next step is to purchase USDC.

CEX platforms like Binance, Coinbase, Crypto.com, Kraken, OKX, Robinhood, and more allow you to buy USDC using fiat currency or other cryptocurrencies. If you’ve chosen a non-custodial wallet, you may notice that it supports fiat-to-crypto purchases via an integrated on-ramping service. If your non-custodial wallet does not support fiat purchases, you’ll need to acquire USDC from a CEX or trade an existing cryptocurrency that you hold in your wallet for USDC.

In general, the steps to acquire USDC on any given platform are:

1. Select a platform that operates in your region and sign up to create an account. This typically involves providing some personal information and completing any required identity verification processes.
2. Fund your centralized exchange account with fiat currency (like US dollars) via bank transfer, debit/credit card, or other supported payment methods. Once your account is funded, navigate to the “market” or “trading” section, select USDC, and execute a buy order for the amount you wish to purchase, either with US dollars or with any other cryptocurrencies you hold in your exchange account that have a trading pair with USDC.

3. Identify merchants or platforms that accept USDC

Explore crypto-friendly businesses and platforms with tools like this directory. Look for payment processors like BitPay, Flexa, or Solana Pay that enable seamless USDC transactions at supported merchants.

4. Make your purchase with USDC

For online shopping with a merchant that accepts some form of crypto payment method, there should be an option to select “crypto” (or a similarly worded option) at checkout. Typically you’ll then be able to scan the QR code with a camera-enabled mobile device, and then be prompted to confirm the transaction in your crypto wallet.

For in-person purchases, retailers, restaurants, and entertainment venues may accept USDC either through direct wallet-to-wallet transfers or crypto-compatible point-of-sale systems. You’ll typically use a mobile crypto wallet or crypto-powered debit card to pay.

Whether shopping online or in person, you’ll then confirm the transaction in your crypto wallet. Once you approve the payment, it will be processed on the blockchain. Depending on the merchant’s setup, confirmation may take seconds to a few minutes. You’ll typically receive a confirmation notification once the payment is successful.

By following these steps, you can enjoy the flexibility and convenience of spending USDC for a wide range of goods and services, both online and in-store.

Different methods to spend USDC

As mentioned, merchants may have different crypto payment setups. Here are some of the most common ways to pay with USDC:

Direct blockchain transactions

Direct blockchain transactions with USDC are fast and incur minimal transaction fees. For peer-to-peer transactions or purchases from vendors who accept USDC directly, follow these steps:

• Obtain the recipient's wallet address
• Specify the amount of USDC to send
• Confirm the transaction in your wallet

Blockchain payment apps

Some merchants integrate cryptocurrency payment gateways like BitPay or Flexa, enabling you to pay with USDC through your wallet.

When you initiate a payment with a BitPay-enabled merchant, for example, an invoice window will pop up at checkout. You’ll then have the option of scanning a QR code with your mobile wallet app, or connecting to over 100 other supported wallets (like MetaMask, Phantom, and more) to complete the payment. On the next screen, you'll see the transaction details. Clicking the "Pay in Wallet" button will open your chosen crypto wallet with a pre-filled wallet address and payment amount. Then review the payment info and complete the transaction.

Crypto debit cards

Several financial platforms offer credit and debit cards linked to your cryptocurrency holdings, allowing you to spend USDC anywhere traditional cards are accepted. A few popular examples include:

• Coinbase Card: Allows you to spend USDC directly from your Coinbase account.
• Crypto.com Visa Card: Lets you spend USDC and earn rewards on your purchases.
• Nexo Crypto Card: Supports USDC spending and enables users to switch between credit and debit.

These cards automatically convert your USDC into the local fiat currency at the point of sale, making transactions seamless.

Other considerations when spending USDC

While spending USDC offers several advantages, it's important to be mindful of a few important concerns:

• Security: Be mindful of security considerations to protect your assets. Always verify the legitimacy of any merchant or service before making a payment to ensure they are reputable and trustworthy. This diligence helps prevent fraudulent transactions and loss of funds. Take care to keep your crypto wallet safe. Use strong, unique passwords, and enable security features like two-factor authentication where applicable to provide an extra layer of security. If using a non-custodial wallet, be sure to protect your private keys and recovery phrases as they are essential to your wallet's security.
• Merchant adoption: While the number of businesses accepting USDC is growing, it's not yet universal. Always check if USDC is accepted before assuming you can use it for payment.
• Regulatory considerations: Cryptocurrency regulations vary by country and can affect how and where you can spend USDC. Stay informed about the laws in your jurisdiction.

The future of spending USDC

As blockchain technology continues to mature, and as more businesses integrate crypto-friendly payment solutions, the adoption of stablecoins like USDC is expected to increase. With growing trust and usability, more businesses across various industries are likely to accept USDC, enhancing its utility as a digital currency for everyday transactions.

Whether you're shopping online, booking a trip, or dining out, USDC provides a flexible and forward-thinking way to manage your finances. With benefits like reduced costs, increased speed, and global accessibility, USDC is paving the way for a more inclusive and efficient financial ecosystem.