USDT Overview: How to Pay and Which Network to Choose?

The stablecoin market offers numerous options, but USDT remains the most popular. Its success is largely due to its availability on multiple blockchains, providing flexibility for investors to interact with DeFi products and use it as a store of value. This broad blockchain support also solidifies USDT’s position as a mainstream payment method.

However, the variety of networks can be confusing for those new to using USDT. Let’s examine the pros and cons of each network that supports USDT to identify the best ones for making payments.

What is USDT

USDT, also known as Tether, is a stablecoin issued by Tether, the parent company of the project. Unlike many other stablecoins on the market, USDT is centralized, meaning it is controlled by Tether. USDT is called a stablecoin because its value is pegged to the U.S. dollar. In other words, 1 USDT is roughly equivalent to $1.

According to Tether, USDT is always backed by reserves to maintain the ability for users to exchange their assets at any time without losing value. USDT does not have its own blockchain, but uses the infrastructure of several other networks, making it one of the most versatile assets in the industry.

The obvious advantage of using USDT for payment purposes is the stability of its value. Thus, whenever a person needs to make a purchase using USDT, they do not run the risk of losing their funds due to market fluctuations. Basically, USDT is much more convenient than traditional cryptocurrencies such as BTC or ETH.

What is the USDT payment gateway?

A crypto payment gateway is a solution that processes payments made in cryptocurrencies. Such tools offer businesses the convenience of accepting digital assets in exchange for goods and services. They also give consumers the ability to use a payment method that is more secure and easier to use.

As a result, a USDT payment gateway is a system that allows you to accept USDT or pay with it, depending on whether you are a business owner or a customer. NOWPayments is one of the USDT payment gateways available on the market today. The key features of NOWPayments are non-custodial services and low fees. NOWPayments does not store its clients’ funds and instead automatically makes payouts to the clients’ addresses.

NOWPayments also charges only 0.5% per transaction, allowing customers to purchase their products with USDT without paying any extra fees.

What Kind of Blockchains for USDT Are There?

When paying with USDT, selecting the correct network is crucial. Since USDT operates on multiple blockchains, using the wrong one can result in lost funds, as the payment won’t reach the merchant.

To avoid this, always confirm the blockchain the merchant uses by asking them directly. Alternatively, you can check the blockchain type by examining the payment address, but asking the merchant is safer, as some networks use similar address formats.

1. Tron

Tron is an open source blockchain that is widely used by merchants to accept USDT. Tron is the epitome of speed, capable of processing 2000 transactions per second. The Tron network is powered by a Proof of Stake consensus, which is the secret to its unparalleled efficiency.

What’s more, USDT transactions on Tron are among the cheapest of all available networks. A single USDT transaction will cost you no more than $1. You are unlikely to find such low fees when using traditional payment systems. This is why, if you have a choice of which network to use to send your payment in USDT, Tron seems to be the most reasonable option.

2. BNB Smart Chain

BNB Smart Chain (BSC) is the network that belongs to Binance, the world’s leading crypto exchange. BSC has gained popularity thanks to its compatibility with Ethereum, but this does not mean that you can send the ETH version of USDT to BSC without using a special bridge. So, once again, pay attention to the network you are using when sending payments in USDT.

The main advantage of BSC is the speed of transactions. The throughput of BSC currently stands at 2k transactions per second. As a result, you can send USDT payments fairly quickly using this network.

3. Ethereum

Ethereum is the biggest smart contract blockchain in the industry. Yet, it is perhaps the least favorable when it comes to USDT payments.

Ethereum is too popular for its own good. This means that transactions can occasionally cost you an arm and a leg due to high traffic on the network. Moreover, the speed of USDT transactions on Ethereum leaves a lot to be desired.

For this reason, using USDT on Ethereum is mostly preferred when you want to interact with certain DeFi protocols. Still, if the merchant you are buying your goods from only accepts the Ethereum version of USDT, you are unlikely to encounter any significant difficulties.

4. Bitcoin (Omni Layer)

Although Bitcoin now allows users to create their own tokens on top of its network, there are solutions that ensure smooth interoperability between the Bitcoin blockchain and various altcoins and smart contracts.

Omni Layer is one such platform. In fact, it was the first network to host USDT. Today, the Omni version of USDT does not get much use. However, there are still many people who have Omni USDT in their wallets. NOWPayments allows merchants to accept this type of USDT and then allows users to pay for products with it.

5. Solana

Solana is one of Ethereum’s main competitors. It is often referred to as Ethereum on steroids. It is designed to serve as an efficient platform for Web3 applications and other projects. Solana can achieve an incredible throughput of 50k transactions per second, making it simply the fastest network in the entire industry.

This ensures that USDT transactions on Solana are processed in seconds. In addition, the cost of transactions on Solana is typically less than one cent.

Overall, Solana is another excellent choice when it comes to making payments with USDT. When choosing between Ethereum and Solana, the latter is preferable.

How to Pay with USDT to a Merchant

How to Create and Fund a USDT Wallet

If you are new to USDT and would like to purchase a specific product with it, you will need to start by creating a crypto wallet. You simply need to create a wallet, fund it with USDT, and make your first purchase.

Those who already have a cryptocurrency wallet with USDT in it can skip the steps below.

1. Download and install a crypto wallet app. For instance, you can use a secure and convenient iOS and Android wallet Guarda, which supports USDT on Solana, Tron, and several other networks.
2. Click Create a new wallet, come up with a secure password, and download your backup key. You will need it to recover your wallet in case you lose access to it. Make sure to save it and do not show it to anyone.
3. Once you sign in to your account, find your preferred USDT (Tether) version on the left-side menu and select it. You will now be shown your wallet address, which you will be able to top up with tokens.
4. In order to fund your Tether wallet, you can go to the Buy&Sell page of the Guarda website and exchange your preferred currency for USDT.
5. Alternatively, you can use any other service that sells USDT. Just enter your wallet address and make a payment. The sum will be transferred to your wallet.

NOTE: Always choose trusted providers and remember to use the right network. If you want to fund your Tron USDT wallet address, you will need to make sure that you buy exactly the Tron version of the token.

How to Pay for Products With USDT via NOWPayments

NOWPayments lets merchants create custom payment links and utilize a host of other payment tools that enable them to accept USDT payments. As a customer, you will be easily able to pay for your products using our tools.

Here is an example of how you can utilize the payment link:

1. Ask the merchant about the available payment options and choose the USDT version, which is required (see the green tag near the name of the token).
2. Next, the merchant will create a payment link, which you will need to settle by transferring the payment sum to the address specified in the invoice.
3. Once the transaction is processed, the payment will be deposited into the merchant’s wallet address and you will receive your product.

Conclusion

USDT is one of the most versatile and convenient payment methods in crypto. Thanks to NOWPayments’ tools, you can shop with USDT at many businesses around the world.