Zap, a Lightning Network payments startup backed by Visa through its Fintech Fast Track program, announced on Jan. 6 the rollout of Strike Global, a payments and remittances app using the Bitcoin (BTC) 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 multi-billion 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 by themselves. Strike will automatically withdraw money from the user’s bank account, exchange it into BTC and then exchange it