5 myths about paying bills with crypto debunked

Because a lot of banks and businesses have yet to recognize crypto as a form of payment, most people assume that they can’t pay bills with crypto or use it in the real world. The truth is that you can, and using your crypto in the real world is much easier than you might think. 

Spritz lets you pay your bills with crypto directly from your preferred wallet. There is no need to off-ramp to a bank, and streamlining your crypto earnings straight into the real world is easier than ever. And no, you don’t need to worry about whether your bill providers accept crypto. 

We hear a lot of myths about paying bills with crypto in the real world and wanted to clear some of those things up. Here are five myths about paying bills with crypto, debunked:

Myth 1: You have to off-ramp to a bank

One of the top myths associated with paying bills with crypto is that you must off-ramp to a bank in order to pay your bills. This is something that was definitely true in the past, but thanks to services like Spritz you can now do it directly with your crypto wallet. 

Spritz lets you pay bills with crypto by accepting payments in your preferred crypto through your preferred Web3 wallet, such as MetaMask or Ledger. It then sends a fiat payment to your bill-pay provider through its own account, meaning that you don’t have to worry about exchanging crypto for fiat or off-ramping into a bank in order to pay your bills with your crypto earnings.

Myth 2: Your bill pay provider has to accept crypto

Another common myth about paying bills with crypto is that providers have to accept crypto in order for users to be allowed to pay their bills with it. However, this is not the case. With Spritz, your payments are sent to your bill-pay provider in fiat currency—meaning they don’t need to accept crypto in order for you to pay with it. In fact, they won’t be handling any crypto at all. 

Spritz lets you pay for real-world items like your new car, vacations, clothes, gifts, groceries, and even your Netflix subscription with crypto straight from your wallet.

Myth 3: Paying bills with crypto will make your tax bill higher

A lot of people associate crypto payments with higher taxes. While it’s certainly true that you may be taxed higher for your crypto earnings than you would on your annual income (depending on how much you make), paying bills with crypto is no different than paying bills with the income you would make from a business. We’re not tax experts, so we can’t give any tax advice, but what we can say is that you could end up saving on your crypto taxes by paying bills with crypto on Spritz if you were going to off-ramp that crypto anyway. 

Most people off-ramp large sums into a bank to save on gas fees and save time making transactions or sending crypto from one account to another. With Spritz you don’t need to send lump sums—instead you pay only your bill total and save on gas fees because Spritz is on the Polygon network. 

If you were off-ramping large amounts of crypto into a fiat bank account before, using Spritz may actually be what could save you more money next tax season. We do recommend checking with a tax accountant, though.

Myth 4: High gas fees

For those who are yet unfamiliar, a gas fee is a term used to describe the transaction fees associated with trading and paying with crypto. In other words, these fees are used to enable the crypto network to remain in operation. In some instances, these fees may be excessive and may deter people from wanting to use the network at all. 

Spritz uses the Polygon network, which has meager gas fees that can enable users to pay bills for less than a penny. This makes it an ideal app to use to pay bills of all kinds, and cost less to use than many centralized banks.

Myth 5: Your bank will have access to your wallet

We often get asked if using Spritz will give your bill providers or bank access to your crypto wallet. The truth is that the only person who has access to your crypto wallet is you! When you pay a bill with crypto using Spritz, you’re only sending crypto from your wallet to ours. We then use your payment to issue a fiat payment to your bill-provider, including mortgage, credit cards, student loan, car payment, utilities, and more!

Ready to pay bills with your crypto wallet?

Overall, there are plenty of myths associated with the crypto realm. The danger in not taking the time to research these myths is that many are missing out on opportunities to utilize your on-chain earnings when paying bills and other monthly expenses. 

If you’re ready to create real-world value with your crypto, Spritz is the app that will let you do it. Sign up for the Spritz beta right here.

Cheers!