2D Character in 3D Environment

I am making a 3D game where the player character has to be a 2D sprite. Now, my question is: what is the best way to implement a 2D object in a 3D environment?

The character will face the camera and stay centered to the camera. I tried using a mere 2D sprite, but since 2D object have their own Rigidbody class and similar, it simply didn't work out very well with the rest of the game world.

Should I maybe use a plane facing the camera, with the sprite rendered as a material on it? Let me know your thoughts and suggestions.

Thank you.