💵 What Is BUSD?
BUSD (Binance USD) is a fiat-backed stablecoin issued by Paxos Trust Company in partnership with Binance. BUSD is pegged 1:1 to the US Dollar and is regulated by the New York State Department of Financial Services (NYDFS).
While BUSD is available on multiple networks, it is most commonly used on BNB Chain (BEP20), where it serves as the primary stablecoin for the Binance ecosystem. BUSD is also available on Ethereum (ERC20) and other networks.
Note: Binance has announced plans to gradually phase out BUSD support. As of 2026, new issuance has been paused, and existing BUSD can still be used but may eventually be converted to other stablecoins. Check the latest updates from Binance and Paxos.
- Market Cap: ~$2B (declining)
- Issuer: Paxos Trust Company (NYDFS-regulated)
- Reserves: US Dollars in FDIC-insured accounts
- Status: Phasing out new issuance
⛓️ BUSD Networks
BUSD is available on several networks, with BNB Chain (BEP20) being the most popular.
| Network | Fee (Avg) | Speed | Adoption |
|---|---|---|---|
| BNB Chain (BEP20) | ~$0.05 | ~3 sec | Primary |
| Ethereum (ERC20) | $1–$10 | ~15 sec | Available |
| Polygon | ~$0.01 | ~2 sec | Limited |
| Avalanche | ~$0.05 | ~2 sec | Limited |
For BUSD payments, BNB Chain (BEP20) is the most common and cost-effective network, with fees ~$0.05 and 3-second settlement. BUSD is deeply integrated into the Binance ecosystem.
📤 How to Send BUSD
Sending BUSD is simple. Follow these steps.
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1
Get a BUSD Wallet
Download a wallet that supports BUSD on BEP20. MetaMask (with BNB Chain added), Trust Wallet, Binance wallet, or Ledger all support BUSD.
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2
Fund Your Wallet
Buy BUSD on Binance or other supported exchanges and transfer it to your wallet.
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3
Get the Recipient's Address
Ask the recipient for their BNB Chain wallet address (starts with "0x"). Make sure it's on the same network (BEP20).
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4
Enter the Amount
In your wallet, enter the amount of BUSD you want to send. Double-check the address and amount.
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5
Confirm and Send
Confirm the transaction. The BUSD will be sent in ~3 seconds on BNB Chain.
If you send BUSD on one network (e.g., BEP20) to an address on a different network (e.g., ERC20), your funds will be permanently lost. Always verify the network before sending.
📥 How to Receive BUSD
Receiving BUSD is easy — share your BNB Chain wallet address.
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1
Get Your BNB Chain Wallet Address
Open your wallet and copy your BNB Chain address (starts with "0x").
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2
Share Your Address
Share your wallet address with the sender. You can also generate a QR code for easy scanning.
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3
Confirm the Sender Uses the Same Network
Remind the sender to use the BNB Chain (BEP20) network to send BUSD.
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4
Check Your Balance
Once the transaction is confirmed on the blockchain, the BUSD will appear in your wallet.
🏪 How to Accept BUSD as a Merchant
Accepting BUSD is a great way to tap into the Binance ecosystem.
Generate a unique payment link for each invoice or product. Share it via email, SMS, or social media. No website required.
Integrate BUSD payments into Shopify, WooCommerce, or other platforms using payment gateway plugins.
For advanced merchants, integrate the gateway API directly into your checkout flow.
Step-by-Step: Accept BUSD with a Payment Gateway
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1
Sign up for a Payment Gateway
Choose a gateway that supports BUSD (e.g., NOWPayments, CoinPayments, or other crypto processors).
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2
Complete KYC
Most gateways require identity verification. This typically takes 1–3 business days.
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3
Set Up BUSD as a Payment Method
Configure BUSD (BEP20 recommended) as an accepted payment method in your gateway dashboard.
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4
Create Payment Links or Integrate
Generate payment links, add a "Pay with BUSD" button, or use API integration.
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5
Start Accepting Payments
Once a customer pays, the gateway confirms the transaction and settles funds to your account.
💰 BUSD Payment Fees Explained
Understanding BUSD fees helps you optimize costs.
| Fee Type | Description | Typical Cost | Who Pays |
|---|---|---|---|
| Network Fee | Paid to BNB Chain validators for processing | ~$0.05 (BEP20) | Sender |
| Gateway Service Fee | Paid to the payment gateway for processing | 0.5% – 2% of transaction amount | Merchant |
| Exchange Withdrawal Fee | Charged when withdrawing BUSD from Binance | Free – $0.01 (BEP20) | User |
| Conversion Fee | When converting BUSD to fiat or other crypto | 0.1% – 0.5% | User |
BUSD on BEP20 has very low fees compared to Ethereum. Withdrawals from Binance are often free or nearly free. This makes BUSD a cost-effective option for Binance users.
⚖️ BUSD vs USDT vs USDC
Here's how BUSD compares to the two largest stablecoins.
| Feature | BUSD | USDT | USDC |
|---|---|---|---|
| Issuer | Paxos (NYDFS-regulated) | Tether Ltd. | Circle |
| Market Cap | ~$2B (declining) | ~$120B | ~$35B |
| Best Network | BNB Chain (BEP20) | TRON (TRC20) | Solana, Polygon |
| Typical Fee | ~$0.05 (BEP20) | ~$0.01 (TRC20) | ~$0.001 (Solana) |
| Status | Phasing out | Active | Active |
| Best For | Binance ecosystem users | Global payments | DeFi, enterprise |
Binance has announced plans to gradually phase out BUSD. New issuance has been paused. While existing BUSD can still be used for payments and transfers, it's recommended to consider transitioning to USDT or USDC for long-term payment solutions.
Choose BUSD if you are actively using the Binance ecosystem. Choose USDT for the lowest fees on TRC20 and global payments. Choose USDC for DeFi and enterprise use.
🏆 Best Practices for BUSD Payments
- Use BEP20 for BUSD — It's the most widely accepted and cost-effective network for BUSD.
- Double-check the network — Sending to the wrong network will permanently lose funds.
- Start with small amounts — When sending to a new address, send a small test transaction first.
- Keep your wallet secure — Use hardware wallets for large holdings and enable 2FA on exchange accounts.
- Consider transitioning — With BUSD phasing out, consider using USDT or USDC for long-term payment solutions.