Zap, a Lightning Network payments startup backed by Visa through its Fintech Fast Track program, announced on Wednesday the rollout of Strike Global, a payments and remittances app using the Bitcoin layer-two technology.
An announcement by CEO Jack Mallers goes in-depth into the differences between standard fiat transfer mechanisms and the Lightning-powered mechanism in Strike Global. Mallers focused on remittances, a multibillion-dollar business that is still largely passed through expensive middlemen.
Strike Global is not too unlike traditional fintech apps, but it uses the Lightning Network for settlement. This means that payments can be essentially instantaneous and at a fraction of the cost of traditional payment rails.
Strike Global has two types of transfers, depending on the recipient’s location. For countries with a developed banking system, Strike allows users to send payments without going through Bitcoin (BTC) themselves. Strike will automatically withdraw money from the user’s bank account, exchange it into BTC, and then exchange it back into the recipient’s fiat currency and banking system.
The system largely piggybacks off the existing Bitcoin exchange infrastructure, which already allows for much cheaper, simplerTitle: Visa-backed Bitcoin startup to launch Lightning-based global payments app
Sourced From: cointelegraph.com/news/visa-backed-bitcoin-startup-to-launch-lightning-based-global-payments-app
Published Date: Thu, 07 Jan 2021 13:04:17 +0000