Subway Trials Lightning Network Payments
The world-famous sandwich franchise Subway has decided to venture back into the Bitcoin game once again. For those who are not in the know, Subway was one of the first chains to start accepting Bitcoin in its early days. At the time, the network required users to wait around for the transactions to complete. As such, it wasn’t feasible.
However, the introduction of the Lightning Network changes everything. Now hungry patrons can spend their Bitcoin in near real-time and enjoy all of their favorite subway treats. The network enables anyone to enjoy frictionless, low-cost, direct p2p payments without all of the hassles.
Germany is the Testing Ground
The Lighting Network testing phase has already begun with three stores located in Berlin, Germany as the first part of the trial. As a component of the strategy, the three subways strategically partnered with Bitcoin payment processor, Lipa. This swiss-based merchant processor is an expert in Lightning Network PoS integration.
According to company documents, Lipa provides the stores with the latest Lighting Network PoS software. The system enables users to simply scan the 3d barcode to pull up the address and make their payment. The hands-free solution is simplistic and requires no touching which is ideal for the post-Covid era.
Lipa charges a low 1% fee for this service. This rate is much lower than credit cards or PayPal. These systems can charge as high as 4%. There are also additional credit card fees that can add up and death away at profits. These fees are part of the reason most places now have minimum credit card payment signs everywhere.
Already, the Subways are seeing the benefits of the integration. Crypto users are flocking to these locations and doing their part to drive adoptions. In a recent interview with Cointelegraph, one of the owners, Daniel Hinze, explained why they wanted to be the first to trial the system.
A Better Monetary System
He spoke on their belief in Bitcoin as a “better monetary system.” He also explained some of the marketing strategies he used to help make the project a success. At the start of the campaign, he offered 50% discounts to anyone paying with Bitcoin. This approach caused a rush of hungry crypto users seeking a good deal.
Strong Bitcoin Supporters
Hinze then decided to lower the discount to 10% after the first week although it's not half off, this discount has helped the network secure more crypto users. Notably, Hinze has registered +120 Lighting Network transactions since the start of the campaign.
It’s a Big Deal
For those who are not fast food experts, Subway is the largest fast food franchise in the world currently. The company used a combination of easy systems, strong support, and relatable marketing to achieve this title. The integration of the Lighting Network into Subways could be a major milestone for both communities. For now, if you are in Berlin, stop into Subway and save 10% on a delicious meatball sub, just be sure to post it with #usingBitcoin to help drive awareness.