BitPay to support the Lightning Network
Bitcoin payment service BitPay has announced immediate support for the Lightning Network through its payment processing platform, allowing merchants operating this platform to receive payments from Lightning wallets and enabling bitcoin transactions more cost effective and cheaper via Layer 2 protocol.
“BitPay merchants can now receive payments from light-enabled wallets like Cash App and Strike,” according to a press release shared with Bitcoin Magazine. “Consumers now have a low-cost alternative when paying with bitcoin at a BitPay-enabled merchant.”
Serving as a bitcoin payment processor for merchants since 2011, BitPay is one of the oldest companies in the cryptocurrency industry. With this support enabled, buyers can checkout through Lighting with a wide range of traders that accept bitcoin payments through BitPay, covering hundreds of millions of people in more than 200 countries around the world.
“PacSun is thrilled to be one of the first BitPay partners to accept bitcoin payments through the Lighting Network,” said Michael Relich, co-CEO of the retail apparel brand, according to the statement. “The Bitcoin Lightning Network offers our customers instant payments and exceptionally low network fees, and creates more opportunities for all bitcoin holders to shop online.”
The Lightning Network has significant potential to expand the use of Bitcoin for everyday payments, as Lightning nodes operate payment channels that only settle their final balance on the main Bitcoin blockchain when closed, reducing the volume of transactions that need to be confirmed at the base layer — a relatively time-consuming and expensive process. But the Lightning Network isn’t as widely used as legacy payment rails like credit cards. Adding Lightning support at BitPay could go a long way to changing that.