Cryptocurrency payment processor BitPay has launched a new payment option, dubbed HODL Pay, as part of a move to offer more Web3 payment accessibility as digital currency adoption grows.
HODL Pay will look to connect the decentralised finance (DeFi) ecosystem with everyday commerce, enabling users to borrow stablecoins from DeFi against their crypto holdings and seamlessly pay any BitPay invoice at checkout.
BitPay continues to focus on expanding Layer 2 network enhancements to enable faster, cheaper, and more expansive payment options for the Web3 community.
BitPay also says that consumers can stay invested while instantly accessing liquidity in stablecoins to meet immediate spending needs. Borrowed funds can be used for purchases like travel, retail shopping, luxury goods, vehicles, and even credit card bill payments without selling their crypto holdings. The seamless integration into BitPay’s checkout experience allows users to spend confidently.
“Crypto isn’t just about speculative investing. It’s about financial ownership, freedom, and choice,” said Bill Zielke, chief marketing officer at BitPay. “With HODL Pay, BitPay gives users an innovative way to spend confidently today without giving up their future growth. We are proud to bring the benefits of DeFi into everyday payments.”
To get started with HODL Pay, users must have a supply position on Aave, collateral for borrowing. Those with an existing supply position can begin spending immediately, while new users can easily create a supply position by supplying eligible crypto assets through the Aave platform.
Once the supply position is ready, users can generate a BitPay invoice by shopping with a BitPay merchant, signing up for Bill Pay, or purchasing a crypto-powered gift card; connect a crypto wallet using WalletConnect; and borrow stablecoins against the supplied collateral and complete payment through the BitPay checkout flow.
Supporting merchants
For merchants, HODL Pay unlocks new opportunities to reach long-term crypto holders who typically prefer holding over spending. By allowing these customers to borrow and pay without selling their assets, merchants can drive higher-value transactions that might not otherwise occur.
“Crypto customers have always been an important part of our growth story with BitPay,” commented Nick Dossa, dealer principal of Vegas Auto Gallery. “We are excited to see new options like HODL Pay that give crypto holders more flexibility in paying for luxury vehicles. It is a forward-looking solution that will help deepen our connection to the crypto community.”
HODL Pay requires no additional setup or integration for merchants and maintains the same next-day settlement that merchants expect from BitPay, in either fiat currency, cryptocurrency, or a mix of both.
