Xapo, the cryptocurrency bank, has joined forces with Lightspark to bring Bitcoin payments to its platform using the Lightning Network.
According to the CEO of Xapo, Seamus Rocca, this partnership will enable the bank to be the very first licensed private bank to provide payments using the Lightning Network.
The bank’s customers will now be able to pay for any products and services up to $100 with Bitcoin, provided that the provider accepts payments through the Lightning Network.
With this integration, Xapo aims to solve the issue of high transaction fees and reduce the time it takes to complete transactions.
As Rocca stated, in the face of hyperinflation, economic instability, and political unrest, there has been a growing demand for Bitcoin payments.
Hence, the bank is open to collaborating with other companies that provide access to cryptocurrency payments.
For this purpose, Xapo has chosen to work with Lightspark, headed by former Facebook executive David Marcus.
According to Rocca, Bitcoin transactions can take up to an hour to confirm on average, with high fees during peak usage periods, making it unsuitable for small, everyday payments.
However, by integrating with the Lightning Network, the process will be simplified, allowing Xapo’s customers to pay for small purchases using Bitcoin without the need to convert to US dollars first.
It is worth noting that in 2021, Xapo applied for a banking license in Gibraltar, and in 2020, the service was accused of storing stolen bitcoins.