The four ways to pay with Bitcoin online
Almost every Bitcoin payment you'll make online falls into one of four categories. The merchant tells you which one they use, and that determines which wallet you need and how long the payment takes.
- Direct BTC — on-chain payment to a BTC address. Slowest (10–60 minutes) but simplest.
- Lightning Network — instant, sub-penny-fee payments via a Lightning wallet.
- Gift card route — buy a gift card with BTC, spend the card at a retailer that doesn't take Bitcoin directly.
- Processor route — pay with BTC at checkout, the processor converts to fiat and pays the merchant.
Step 1: pick the right wallet
For on-chain and processor payments you need any standard Bitcoin wallet (Electrum, Sparrow, BlueWallet, Muun, etc.). For Lightning you need a Lightning wallet. The beginner-friendly options are Wallet of Satoshi (custodial, easiest), Phoenix (self-custodial, auto-channels), or Breez (self-custodial, full features).
Step 2: pay on-chain (Direct BTC)
At checkout, the merchant (or their processor) shows a Bitcoin address and an amount in BTC or fiat. Copy the address, open your wallet, paste the address, enter the exact amount, and send. Wait for the confirmation count the merchant requires (often 1–3). Most wallets let you choose a network fee — pay a few pounds extra for faster confirmation.
Step 3: pay via Lightning (instant)
If the merchant shows a Lightning invoice (starts with lnbc…), open your Lightning wallet, tap "Send", paste or scan the invoice, and confirm. The payment settles in under a second. Network fees are typically a few satoshis.
Step 4: gift card route
For retailers that don't take Bitcoin (Amazon, IKEA, supermarkets, etc.), buy a gift card with BTC on Bitrefill, Coinsbee, or Cryptorefills. The gift card code arrives by email within seconds. Spend it at checkout like any other gift card.
Step 5: processor route
Major processors (BitPay, Coinbase Commerce, CoinGate, NOWPayments) show their own checkout page. You pick "Pay with Bitcoin", get an invoice (often with both on-chain and Lightning options), and confirm in your wallet. The merchant receives fiat.
Common pitfalls
- Sending on-chain to a Lightning invoice (or vice versa). Funds will be lost. Always match the payment rail.
- Underpaying network fees. A 1-sat/byte fee in 2026 can mean a 12-hour wait. Use your wallet's recommended fee.
- Forgetting the payment amount. Always send the exact amount shown in the invoice — most processors tie the payment to the exact BTC figure.
- Trusting a "support agent" who DMs you. No real merchant or wallet will DM you first.
What to do next
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