Payment processor Strike has doubled down on the Lightning Network payment system. The new system will enable users to send value to the Philippines over the second layer protocol from the UK and the US. News of the expansion has been welcomed as the Philippines depend largely on remittance payments as part of its GDP.
Remittance payments are international money transfers made from migrant workers back to their families in their countries of origin. These funds provide valuable resources to areas of the globe where earning opportunities are not prevalent. As such, they’re a vital part of the day-to-day lives of millions of people.
Notably, the Philippine remittance market is one of the largest in the world. Reports place the market at $35B and analysts predict this value to grow significantly as more migrant workers take up careers around the globe. Interestingly, cryptocurrencies have always found a home catering to this market.
The Philippines is a Remittance Hub – Strike
Bitcoin received early adopted in the Philippines for these exact reasons. At that time, the network was so new that it was practically the same cost as using the Lightning Network today. However, due to congestion and other factors, it's been much more expensive to send Bitcoin on the mainnet versus the Lighting Network for years.
As reported earlier, Strike is pioneering a way to lower remittance costs for the millions of families that rely on these live-giving payments in the Philippines. They announced last month that they would provide a Lightning Network solution that would cut costs and improve efficiency dramatically. The system leverages the Lighting Network and an onramp that enables the user to convert fiat to crypto directly.
Strike Started in the UK
The first stage of the rollout included the UK. There are billions sent between the UK and the Philippines yearly. Now, Stripe has expanded the service to include the United States. This maneuver will open the door for all international workers to secure a living in the country. They can now send funding instantly to their loved ones from the US and UK for a fraction of the cost of fiat options,
The Strike's system enables a person to convert their fiat directly into Bitcoin on the Lightning Network. From there, the funds get sent to a recipient in the Philippines. They can then convert Bitcoin into fiat currency using the same portal. Notably, the portal supports +14 fiat currency conversions which makes it ideal for an international clientele.
Strike into the Future
This flexibility will surely help the platform expand into other nations and markets. Notably, the Philippines ranks third in the world in terms of remittance payments. The first two nations on the list are India and China.
Lightning Strikes Again
Strike remains a top-performing payment processor in the crypto market. Their embrace of the Lighting Network has helped them to differentiate from the competition and provide lower rates and higher performance. You can expect to see their latest venture continue to expand in the coming weeks to support the demand in the market for low-cost international money transfers.