Strike, the digital payments platform built on Bitcoin's Lightning Network, has launched a new feature called 'Send Globally' that allows users in the United States to send instant, near-zero-cost payments to Kenya, Ghana, and Nigeria. The feature automatically converts the transferred funds into the recipient's local currency and deposits them directly into their bank or mobile money accounts, significantly reducing the friction associated with traditional cross-border remittances.
The High Cost of Sending Money to Africa
According to the World Bank's Migration and Development Brief, Sub-Saharan Africa remains the most expensive region in the world to send money to, with average fees exceeding 8% of the transaction value. High fees, slow settlement times, and a lack of innovation in cross-border payment infrastructure have long plagued the millions of African diaspora who rely on remittances to support their families. By leveraging the Lightning Network's ability to process micropayments almost instantly and at negligible cost, Strike aims to disrupt this outdated system.
How the Lightning Network Enables Low-Cost Transfers
Jack Mallers, founder and CEO of Strike, stated: '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.' To make this possible, Strike partnered with Bitnob, an African payments platform that connects Lightning Network rails to local banks and mobile money providers. When a user selects 'Send Globally' in the Strike app, they enter the recipient's name, country (currently Kenya, Ghana, or Nigeria), and the amount in U.S. dollars. The system instantly settles the transaction via the Lightning Network, converts to the local currency at a competitive exchange rate, and deposits the funds into the recipient's bank or mobile money account—all within seconds. For the recipient, the experience is identical to a regular mobile money transfer; no Bitcoin or blockchain knowledge is required.
Future Expansion Plans
Strike has indicated it will continue to expand its payment services to Africa through integrations and partnerships with cross-border payment providers like Chipper Cash. The 'Send Globally' feature is currently limited to U.S.-based users, but the company may open it to other regions in the future. While Strike is not the first company to attempt using Bitcoin for remittances, its direct integration of the Lightning Network gives it a distinct advantage in terms of speed and cost—transactions can cost as little as a fraction of a cent and settle instantly, bypassing the delays of traditional banking systems and the high fees charged by money transfer operators.