Where Can You Spend Cryptocurrency: A 2023 Guide

Where can you spend cryptocurrency

Using the phrase "where can you spend cryptocurrency" in the title reflects the central question this guide answers: how, where and under what conditions you can use digital crypto assets to buy goods, pay for services, donate, settle bills, or convert into fiat. This article explains the practical payment methods (direct merchant acceptance, payment processors, prepaid and debit cards, gift cards, custodial checkout providers), the typical merchant categories (travel, retail, gaming, charities, luxury goods, real estate), and the technical, legal and tax considerations you should know before you spend crypto.

As of 2025-12-23, according to BitPay, thousands of merchants worldwide accept crypto payments through payment processors and directories. As of 2025-12-23, according to Coinbase Help and PayPal public guidance, custodial checkout and wallet integrations make it possible to pay with crypto even when merchants don't accept it natively. These trends shape answers to the question: where can you spend cryptocurrency and how to do it safely and efficiently.

Overview of acceptance and adoption

Merchant acceptance of crypto varies by geography and sector. Broadly, acceptance follows four main paths:

• Direct on-chain or off-chain merchant acceptance (merchant runs a wallet or asks for a wallet address).
• Payment-processor enabled acceptance (merchant integrates a processor that handles conversion and settlement).
• Card- or voucher-based solutions (crypto debit/prepaid cards that convert at point-of-sale, or gift cards bought with crypto).
• Custodial checkout services (providers let customers pay in crypto while merchants receive fiat).

Adoption is strongest in sectors with cross-border needs (travel, digital goods), niche communities (gaming, NFTs, collectors), and charities where donors value crypto transparency. Geographic and regulatory variability matter: some countries welcome crypto payments, others limit or ban them, affecting local merchant acceptance and available services.

Primary ways to spend cryptocurrency

Below are the main routes people use when asking "where can you spend cryptocurrency" and how each works.

Direct merchant acceptance (on-chain & off-chain)

Merchants that accept crypto directly either present a wallet address or a payment invoice. Online stores often display a QR code and a payable invoice amount denominated in crypto. In-store shops can show a QR code on a tablet or printed receipt, and customers scan from their wallet app to send payment.

Typical checkout flow:

1. Merchant displays crypto option and a payment invoice (amount + expiry).
2. Customer scans QR code or copies the address/URI into their wallet.
3. Wallet creates a transaction; user confirms and broadcasts it.
4. Merchant waits for required confirmations (policy-dependent) and fulfills the order.

Examples of direct acceptance include specialty online retailers, some subscription services, and selected physical stores. Direct acceptance can offer lower fees and no card rails, but requires merchants to manage volatility, settlement, and security.

Payment processors and merchant directories

Payment processors (merchant processors) let merchants accept multiple cryptocurrencies without dealing with the on-chain complexity, often offering automatic fiat settlement to reduce volatility exposure. Processors also provide invoices, payment buttons and integrations for popular e-commerce platforms.

Well-known processor features include:

• Multi-coin acceptance and invoice generation.
• Merchant dashboards and refunds handling.
• Automatic conversion to a merchant-preferred currency.
• Merchant directories that list businesses accepting crypto via the processor.

Directories and search tools (processor directories, searchable maps) are handy when asking "where can you spend cryptocurrency" because they aggregate merchants by category and region.

Crypto payment via custodial checkout services (PayPal-style)

Custodial checkout services let users pay with crypto while a custodian converts crypto to fiat behind the scenes so the merchant receives the usual payment. The user typically selects "pay with crypto" in-app or at checkout, confirms the transaction, and the provider settles with the merchant in fiat or via card networks.

This method is convenient because it integrates into existing merchant checkout flows and often requires no merchant-side technical changes. The trade-off is custodial control of assets during conversion and possible fees and KYC requirements.

As of 2025-12-23, according to PayPal’s public documentation, custodial checkout options continue to be offered in several markets, and they remain a common way consumers answer "where can you spend cryptocurrency" without needing merchant adoption.

Crypto debit/prepaid cards

Crypto cards are debit or prepaid cards funded by cryptocurrency balances. When used at point-of-sale or online, the card provider converts crypto to fiat in real time and charges the merchant like a regular card transaction.

How they work:

• Card is issued in partnership with card networks and a fiat-issuing partner.
• User funds the card by locking crypto in an account or wallet with the card provider.
• At checkout, crypto is converted to fiat and the merchant receives the fiat settlement.

Pros: Works at millions of merchants that accept card payments; easy UX. Cons: Conversion fees, possible KYC, regional availability, and occasional issuance pauses or limits for compliance reasons.

Note: Card program availability varies by jurisdiction; check the provider’s terms and regulatory status in your country.

Gift cards & vouchers purchased with crypto

If a merchant does not accept crypto directly, buying gift cards with crypto is a universal workaround. Several services let you purchase gift cards to major retailers, restaurants, and stores using crypto, which can then be redeemed like cash.

Benefits:

• Broader reach — spend at retailers that do not accept crypto.
• Often available for popular national and international brands.

Considerations:

• Some services charge a fee or include markup.
• Gift cards may have expiry or restrictions.

Peer-to-peer (P2P) and person-to-person payments

P2P crypto transactions let you pay other individuals directly. This is common for freelancers, private sellers, tipping, and local trades. Tools and marketplaces facilitate escrow or reputation systems to reduce counterparty risk.

Use cases include:

• Paying independent contractors, consultants, or freelancers.
• Buying items on local marketplaces where buyer and seller agree on crypto settlement.
• Tipping content creators and service personnel within communities that accept crypto.

Bill pay and large purchases (cars, real estate, mortgages)

Some vendors accept crypto for large purchases such as cars, real estate or high-value goods. Specialized services and brokerages can handle settlement, title transfer and tax reporting. For recurring bills, certain bill-pay providers accept crypto to pay utilities or credit card statements, though these services usually involve conversion and fees.

Because of regulatory and tax complexity, high-value transactions often use intermediaries that perform fiat settlement and provide documentation for both buyer and seller.

Technical details of payments

Understanding the technical plumbing helps when deciding where and how to spend crypto.

On-chain vs Lightning Network vs layer-2 solutions

On-chain (base-layer) transactions are recorded directly on the blockchain. They are secure and widely supported but can be slower and more expensive during network congestion.

Layer-2 solutions and payment networks (for example, payment channels or rollups) offer faster, cheaper transfers at the cost of some architectural complexity. For small, frequent payments (micro-payments, tipping, in-game purchases), layer-2 networks like Lightning (for certain blockchains) dramatically improve UX by reducing latency and fees.

Trade-offs:

• On-chain: universally accepted, higher fees, slower confirmations.
• Layer-2: fast and low-fee, but requires both payer and payee to support the network or use a compatible service.

Wallets, QR codes, and checkout flows

Most crypto payments use URI schemes and QR codes. Common elements include:

• Address or URI (may include amount and memo/tag for some coins).
• Invoice expiry (many merchant invoices expire after a short window to reduce risk).
• Wallet apps that detect URI parameters and pre-fill amount.

Good checkout practice: verify the amount, currency and address before confirming. If a memo/tag is required (e.g., for some coins), include it or the payment may not credit correctly.

Payment confirmations and merchant risk management

Merchants set confirmation policies depending on the coin and transaction size. Cryptocurrency transactions are irreversible once included in a block; merchants often require multiple confirmations for larger orders to mitigate risk from chain reorganizations or double-spend attempts. Payment processors frequently assume confirmation policies on behalf of merchants and can offer instant or near-instant risk assessment.

Typical merchant categories and examples

When thinking about "where can you spend cryptocurrency," common categories include:

• Online retail and digital goods (software, subscriptions, VPNs).
• Travel and hospitality (flights, hotels, vacation rentals).
• Gaming and entertainment (in-game items, platforms, streaming donations).
• Charities and nonprofits (many accept crypto donations for transparency).
• Restaurants and cafes (select locations and chains).
• Electronics and luxury goods (niche merchants and collectors).
• Real estate and automotive sellers (special arrangements and brokers).

Representative examples vary by region and change over time; consult merchant directories for up-to-date lists. As of 2025-12-23, according to a compilation of merchant directories and curated lists, travel bookings and digital services remain among the most consistently supporting crypto payments.

Regional, legal, and tax considerations

Where you can spend cryptocurrency depends heavily on local laws and regulations.

• Some countries restrict or ban crypto payments; in those locations, merchant acceptance will be limited.
• KYC/AML: Many custodial providers and card issuers require identity verification to issue cards or enable checkout.
• Taxes: In many jurisdictions, spending cryptocurrency is a taxable event because converting crypto to fiat or transferring crypto for goods/services can trigger capital gains or income recognition. Keep records of transaction amounts, timestamps, and fiat-equivalent values.

As of 2025-12-23, tax authorities in multiple jurisdictions have published guidance that treating crypto payments as disposals (potentially taxable capital events) requires users to report gains or losses on tax returns.

Costs, limits, and UX trade-offs

When deciding where to spend cryptocurrency, consider:

• Volatility risk: The fiat equivalent of crypto can change between invoice generation and confirmation.
• Conversion fees: Custodial checkout and card providers may charge spreads or flat fees.
• Network fees: On-chain fees vary with network congestion.
• Invoice expiration and UX: Short invoice windows may fail if network confirmations are slow.

Balancing convenience and cost will determine which method to use. For micro-payments or tipping, layer-2 or custodial solutions often offer the best UX; for large purchases, processors offering immediate fiat settlement are common.

Security and fraud considerations

Best practices when spending crypto:

• Verify recipient addresses via trustworthy channels; don’t copy addresses from unverified sources.
• Confirm the amount, currency and memo/tag (if required) before sending.
• Use hardware wallets or secure wallet apps and enable two-factor authentication on custodial accounts.
• Beware of social engineering scams that swap clipboard contents or present fake QR codes.
• For P2P trades, use escrow or reputable marketplaces to reduce counterparty risk.

Common scams include fake merchant sites, phishing invoices, and impersonation of customer support requesting payment to a new address.

How to find places that accept cryptocurrency

Practical tools and search methods:

• Payment processor directories and merchant listings: many processors maintain searchable directories of merchants using their services.
• Bitcoin.org and curated lists: maintained resources can point to commonly accepted merchants and use cases.
• Search maps and local listings: interactive maps and search engines that filter by payment method.
• Editorial lists and roundups: industry articles and curated roundups often list large or notable merchants by category.

When searching locally, check merchant websites or call ahead to confirm acceptance and any special payment instructions.

Step-by-step: How to spend crypto (consumer guide)

A quick procedural workflow to spend crypto safely:

1. Decide where to spend: confirm the merchant accepts your chosen coin or payment method.
2. Choose the payment route: direct on-chain, processor checkout, card, gift card, or P2P.
3. Prepare your wallet: ensure you have the required coin, a secure wallet (consider Bitget Wallet for Web3 integrations), and sufficient funds to cover fees.
4. At checkout: select crypto payment and confirm invoice details (currency, amount, invoice expiry).
5. Initiate payment: scan QR code or use the wallet’s checkout option; confirm transaction details before sending.
6. Monitor confirmations: wait the required number of confirmations or processor acknowledgment.
7. Save receipts and records for tax and dispute resolution.

This workflow addresses the practical steps for anyone wondering "where can you spend cryptocurrency" and ensures tax and security hygiene.

Alternatives and fallback options

If direct acceptance is unavailable, consider these alternatives:

• Convert crypto to fiat via a trusted exchange and use traditional payment methods (promote Bitget as a primary exchange choice for conversion needs).
• Buy gift cards or vouchers using crypto to spend at retailers that do not accept crypto.
• Use peer-to-peer exchanges or local trades with escrow to obtain fiat.

Each option has trade-offs in speed, fees, KYC requirements and tax reporting.

Business perspective: accepting crypto as a merchant

Why merchants accept crypto:

• Access to new customers and cross-border demand.
• Lower chargeback risk compared to cards (crypto payments are irreversible once confirmed).
• Marketing and PR benefits for tech-forward brands.

Tools for merchants:

• Payment processors and plugins for e-commerce platforms to accept crypto with minimal development effort.
• Invoicing solutions for contractors and B2B payments.
• Immediate fiat settlement to avoid volatility risk.

Accounting and tax:

• Merchants must record the fiat-equivalent value at the time of sale and handle VAT/sales tax reporting appropriately.
• Volatility management is commonly handled by converting to fiat immediately upon receipt.

Trends and future developments

Where can you spend cryptocurrency is evolving. Key trends include:

• Improved UX: Wallet integrations, one-click payments and instant settlement will reduce friction.
• Increased adoption of layer-2 solutions for micro-payments and gaming.
• Growth of custodial and non-custodial checkout options enabling more merchants to technically accept crypto without holding it.
• Regulatory developments will shape regional availability and KYC/AML practices.

These trends indicate a gradual expansion of places and ways you can spend cryptocurrency, particularly in sectors with cross-border or digital-native demand.

Frequently asked questions (FAQ)

Q: Is spending crypto taxable? A: In many jurisdictions, spending crypto is treated as a disposition and may trigger capital gains or losses. Keep records of cost basis, sale value and date. Check local tax guidance.

Q: Can I reverse a crypto payment? A: Typically not. Most crypto payments are irreversible once confirmed on-chain. Custodial providers may offer limited reversals as part of their service terms.

Q: Are there hidden fees when spending crypto? A: Fees can include network fees, processor spreads, conversion fees for cards, and gift-card markups. Review fee schedules before transacting.

Q: How do crypto cards work? A: Crypto cards convert your crypto to fiat at the point-of-sale. You fund the card with crypto in your account. Card terms vary by provider and jurisdiction.

Q: What’s the safest way to pay someone with crypto? A: Use reputable wallets, verify addresses, prefer escrow for large P2P trades, and consider processors or custodial services for merchant purchases to reduce counterparty risk.

References and further reading

Sources referenced in this guide include processor directories and public help pages. Key sources used to aggregate merchant acceptance and payment flow guidance were processor documentation, industry help pages, and curated lists of merchants that accept crypto.

As of 2025-12-23, according to BitPay’s merchant directory and public materials, payment processors remain a major channel for merchant acceptance. As of 2025-12-23, Coinbase Help and PayPal materials describe custodial checkout flows that expand where customers can spend crypto without merchant-side changes. Bitcoin.org and editorial roundups provide practical examples and community guidance on spending crypto.

Further reading and resources to explore:

• BitPay materials and merchant directory for up-to-date lists of businesses accepting crypto.
• Official wallet documentation (for Bitget Wallet and other wallet providers) to learn about supported coin formats, invoice handling and security practices.
• Bitcoin.org guide on spending Bitcoin for technical and UX considerations.
• Industry articles and curated lists that periodically publish merchants accepting crypto in consumer-facing categories.

Practical next steps

If you want to try spending crypto today:

• Check merchant acceptance in your region using a processor directory.
• Set up a secure wallet — consider Bitget Wallet for reliable Web3 integration and payment UX.
• Start with small purchases to learn invoice handling, address formats and confirmation timing.
• Keep transaction records for tax and support purposes.

Explore Bitget’s platform and the Bitget Wallet to convert, manage and spend crypto with consolidated tools designed for both beginners and active users.

Explore more: where can you spend cryptocurrency and how to choose the right payment path for your needs. For merchant lists and directories, consult payment processor directories and community-maintained resources to find the most up-to-date places to spend.