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BitPay integrates Lightning Network to enable low-cost Bitcoin transactions BitPay integrates Lightning Network to enable low-cost Bitcoin transactions

BitPay integrates Lightning Network to enable low-cost Bitcoin transactions

The crypto payments processor now allows its customers to use โ€œa low-cost alternative when paying with Bitcoin at BitPay-enabled merchants.โ€

BitPay integrates Lightning Network to enable low-cost Bitcoin transactions

Cover art/illustration via CryptoSlate

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Major cryptocurrency payment service provider BitPay has added support for the Lightning Network (LN), Bitcoinโ€™s (BTC) Layer-2 scalability solution, granting users access to a faster and cheaper method of transacting their BTC.

In an announcement shared with CryptoSlate today, BitPay co-founder Tony Gallippi noted:

โ€œBitPayโ€™s integration with the Lightning Network offers customers more choice and merchants more ways to be paid leveraging blockchain technology.โ€

Lightning, what is it good for?

The Lightning Network is a so-called Layer-2 payment and communication protocol built on top of the Bitcoin blockchain. The solution allows transactions to be processed off-chain, taking the load off the mainnet and improving the networkโ€™s scalability. As a result, payments made via the LN can be processed not only faster but also cheaper thanks to lower fees.

Following the integration with BitPayโ€™s Payment Processing Platform, merchants can now receive transactions from crypto wallets that support the LN, including CashApp and Strike. In their turn, consumers now have a โ€œlow-cost alternativeโ€ when they make payments at BitPay-enabled dealers.

Notably, BitPay merchants wonโ€™t need to make any changes to their existing setups to start accepting Lightning payments However, BitPayโ€™s wallet app does not currently support the LNโ€”at least โ€œyet.โ€

Another step toward mass adoption

Meanwhile, American retail clothing brand Pacific Sunwear of California (PacSun) has become one of the first BitPay partners to accept BTC payments via the Lightning Network, the companyโ€™s CEO Michael Relich noted, adding:

โ€œThe Bitcoin Lightning Network provides our customers with instant payments and exceptionally low network fees, and creates more opportunity for all holders of Bitcoin to shop online at [our store].โ€

As CryptoSlate reported, the total value of BTC locked on the Lightning Network exceeded $130 million in late Februaryโ€”and that figure has already grown to just over $162 million since then.ย 

However, despite significant growth in 2021, the solution arguably still remains a niche product. But with giants such as BitPay adding support for it, perhaps this is about to change.