Litepay, the Litecoin-exclusive transaction processor, is on track for its February launch and is expected to be released for consumer use this week. The transaction processor was initially made public in December — announced just before Christmas by the Litecoin Foundation.
Soon, people will be able to start paying for everyday necessities with Litecoin with the help of Litepay, using the company’s Litecoin-exclusive debit card. Additionally, merchants will be able to accept the cryptocurrency for payments as well.
Just like the more well-known entity — Bitpay, a Bitcoin and Bitcoin Cash transaction processor, Litepay will allow merchants to accept Litecoin payments by instantly processing those payments for said merchant that are settled directly with their banks.
The service provides value to two fundamentally different kinds of clientele for two different reasons. Firstly, it gives merchants an added incentive to begin accepting Litecoin because the payment processor assumes the risk of accepting the crypto — protecting merchants from market volatility. Secondly, it gives Litecoin holders more liquidity in the short-term with their debit cards.
Thus, with the added perks of increased liquidity on the consumer side and protection from risk on the merchant side — Litepay hopes to increase outward adoption of the cryptocurrency.
However, Litepay is not the first crypto transaction processor — nor is it the first to provide people crypto debit cards. Many other institutions have offered some sort of crypto debit card, mainly exchanges, and Bitpay is the premier name in payment processing right now.
So, what makes Litepay different? Well, for one, Bitpay currently charges people $5 dollars per transaction to make payments in Bitcoin — which has become increasingly slower and more expensive as a payment option.
This is something that’s mentioned by Palwasha Saaim, a Research Analyst at Lombardi Financial, while calling Litepay a “game changer” for Litecoin:
“Payments would be processed by LitePay instantaneously and settled directly with their banks.
“Take note that BitPay is currently charging about $5.00 transaction fees for processing Bitcoin transactions that take ages to confirm.”
Furthermore, because of Litecoin’s quicker transaction times and significantly cheaper fees, many believe that Litepay — while not being the first to try and create mainstream cryptocurrency payment acceptance — it will be the first to successfully do so.
What do you think of Litepay’s upcoming launch? Do you think it will result in more consumers paying with Litecoin? Let us hear your thoughts.
Images via Litecoin and cypruscu.com