Xapo has partnered with Lightspark to allow its users to instantly transfer bitcoin to any merchant that accepts BTC through Lightning.
Xapo Bank, a private bank regulated in Gibraltar, has teamed with Lightspark, a company founded by former Facebook crypto chief David Marcus, to integrate the Lightning Network and allow near-instant bitcoin payments for its clients.
Members of Xapo Bank may now make minor purchases of up to $100 at any merchant who supports Lightning payments without paying hefty transaction fees or waiting for lengthy blockchain confirmations. This connection will make Xapo Bank the first private bank to enable Lightning payments with an exclusive license.
The Lightning Network allows scalable payments at millions of transactions per second throughout the network, lowering the time-consuming and expensive experiences often seen by bitcoin users who perform smaller transactions.
Seamus Rocca, CEO of Xapo Bank, said of the agreement, “By integrating with the hyper-efficient Lightning Network, we are the first bank in the world to optimize this process and enable our users to make minor Bitcoin purchases without converting to USD first.” Rocca noted that Xapo Bank gives 4.1% yearly interest on U.S. dollars and will soon offer up to 1% daily interest on Bitcoin.
“We’re happy to allow the first bank on the Lightning Network to give its clients rapid, low-cost Bitcoin payments,” said Lightspark co-founder and CEO David Marcus.
Members of Xapo Bank may make Lightning Network payments by storing bitcoin in the Xapo Bank app and scanning and paying an invoice at any business that supports Lightning payments.
Xapo Bank has imposed a fixed payment cost of 15 sats to prevent members from conducting transactions with excessive fees.
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