Strike, a digital payments platform leveraging Bitcoin's Lightning Network, has unveiled a new feature called 'Send Globally' that enables its United States-based users to transfer funds instantly and at minimal cost to Kenya, Ghana, and Nigeria. The feature automatically converts the transferred amount into the recipient's local currency and deposits it directly into their bank or mobile money account.
The High Cost of Sending Funds to Africa
According to the World Bank's Migration and Development Brief, Sub-Saharan Africa currently faces the highest remittance costs globally. Traditional cross-border payment methods are plagued by exorbitant fees and slow settlement times, placing a heavy burden on families reliant on overseas remittances. Jack Mallers, founder and CEO of Strike, commented: 'High fees, slow settlement, and lack of innovation in cross-border payments have negatively impacted the developing world. With exorbitant fees to transfer funds in and out of Africa and incumbent providers halting services, payments companies are struggling to operate in Africa and people cannot send money home to their family members.'
Lightning Network Enables Low-Cost Transfers
By utilizing the Lightning Network's infrastructure, Strike makes cross-border transfers nearly costless. The new feature is supported by a partnership with African payments platform Bitnob, ensuring near-instant settlement. Mallers emphasized that through Strike, users now have the opportunity 'to transfer their US dollars easily and instantly across borders.' When using 'Send Globally,' the payment is instantly converted into the respective country’s currency and deposited into the recipient’s bank or mobile money account. Strike has stated it will continue to expand its African payment services through integrations and partnerships with cross-border providers like Chipper Cash.
This move could disrupt the dominance of traditional money transfer operators, offering millions of African families a more affordable and efficient way to receive remittances. Currently available only to US-based users, Strike plans to gradually extend the service to more regions.