BitPay Increases Focus on Crypto Disbursements — Including Payroll Payouts

PYMNTS eBook, BitPay

In the new PYMNTS eBook, “What’s Your Plan? Payments Strategies for a Strong 2022 Finish,” BitPay CEO Stephen Pair explains why payroll is a sweet spot in the crypto realm now.

 

 With the third quarter of 2022 bringing a long-expected drop in consumer spending and along with inflation that’s still rampaging, Q4 is a time for tight focus.

At BitPay, we’re going to be hyper-focused on BitPay Send, which allows companies to do disbursements on our platform.

Payroll is a sweet spot, as the weakness in the price of bitcoin and other cryptocurrencies during the crypto winter makes this a good time to buy and hold through a dollar-cost averaging strategy.

Dollar-cost averaging is a popular way to build crypto holdings slowly while taking the stress out of investing in an asset with a volatile price. It means automating the purchase of a set amount of bitcoin on a regular schedule — say every two weeks via a BitPay Send payroll direct deposit strategy — so that day-to-day price fluctuations average out over time.

Employees can opt-in to receive a certain portion of their salary this way. It can be a percentage or an absolute dollar amount of your after-tax paycheck. We’re seeing much interest in this strategy because it’s a good buying opportunity. It’s really about providing an easy on-ramp for people into the world of cryptocurrency.

Your employees can allocate a portion of their earnings to whatever digital asset they like, and it shows up weekly in their wallets. So, it’s also right there and ready to be spent if they wish. It’s a service we provide that complements our payments processing service.

It could be bitcoin or a stablecoin like USD Coin, which lets them be a little more price conscious about when they buy bitcoin or other digital assets. So, you can get your paycheck in stablecoin and then you could convert that into bitcoin if you wish.

In addition, stablecoins are a lot simpler to spend, as you can eliminate the complication of tracking capital gains for every purchase.

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