Strike and payments giant Fiserv has introduced Lightning Network integration to enable crypto payments on Fiserv’s Clover point of sale solution.
Clover Pilot will test lightning speed and settlement costs
According to Strike CEO Jack Mallers, the integration will allow business owners using Clover Commerce’s point-of-sale solutions to accept Bitcoin payments using the Lightning Network.
Mallers added that the service will initially be released for a 90-day trial period to test settlement speed, costs and whether the integration drives new business for merchants.If the pilot succeeds, the goal is to enable Lightning payments for all Clover merchants.
According to Mallers, any Lightning-enabled app, from CashApp to a node on the Tor network for anonymity, could send money to a merchant’s Clover terminal.
The Lightning Network is a second-layer Bitcoin solution that enables fast transfers of funds between two nodes via a ‘payment channel’.These micropayments have very low fees without being published in the first layer Bitcoin network.
Bitcoin maximalist Michael Saylor said MicroStrategy, the enterprise software company he founded in 1989, will develop an enterprise architecture to enable e-commerce companies to receive payments denominated in satoshis, or hundred millionths of Bitcoin, using the Lightning Network.
Strike’s history with the Lightning Network
Initially a private entrepreneur based in El Salvador working to fix the country’s costly remittance system with Bitcoin, Mallers rose to prominence after President Nayib Bukele asked him for advice on making Bitcoin legal tender in the country.He soon became a keynote speaker at major Bitcoin conferences.
Through Mallers’ payment app Strike, citizens of El Salvador could receive remittances from the US without having to directly handle Bitcoin.The app could convert fiat deposits into Bitcoin and send them to a Strike partner in the destination country.Strike would then convert the Bitcoin into the recipient’s fiat currency and credit the recipient’s Strike account.Lightning’s low fees meant that remittances could be free instead of costing up to half the amount transferred.
Strike has also integrated its API into Twitter to allow content creators to receive tips.
Twitter has since discontinued the service after low user interest.
Fintechs can improve customer experience with the Lightning Network
The ability of Clover merchants to receive payments through the Lightning Network can improve the customer experience for customers of so-called fintech firms that have boomed in recent years.
Nearly $140 billion was invested in the fintech sector between 2012 and 2022.One source predicts that the digital wallet user base will reach 125 million by 2025.
Fintechs charge a fee for aggregating a customer’s transactions and forwarding them to a payment processor or bank.
More user-focused, these companies create sleek apps that appeal to a younger clientele that demands fast and affordable payments.Lightning Network’s speed and low fees can finally free fintechs from the shackles of legacy banking.Fintechs can then power Bitcoin payments in 2023.
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