After the size of the transaction fees of bitcoin has reached record highs, began to grow the popularity of Litecoin as an alternative to make payments and P2P transactions. And the community did not fail to respond to the growing demand. A new service called Litepay is set to launch this month. It will allow companies to receive payments in lidoine and plans to release its own maps based on Litecoin.
According to the official website, the purpose of Litepay is to offer a much lower payment fees than existing credit cards. The company also will allow the sellers to transfer the funds to Fiat currency, without incurring the risks associated with volatility. Company representatives say that the Commission for the sellers will be only 1%, unlike companies that produce credit cards and charging up to three percent fees for transactions.
The site also details how the company plans to provide work and payment card issuance on the basis of litecoin. First, a potential customer orders a card and pays for her release, then verify your identity and get a card. After its activation, the owner can transfer litecoin to your account linked to the card, and then spend cryptocurrency in any place where «a debit card, or withdraw cash from any compatible ATM card».
The site even assuming that users could arrange the transfer of their wages on the card for its conversion into litecoin. It is not indicated the fees to users, as the size of the transaction fees for start-UPS and individual transactions. In addition, the website does not say which payment network will be used to issue cards. There is no specific information on the use Visa, MasterCard or any other provider, and no information about possible restrictions of the operations in connection with the place of residence of the owner. The site says that the exchange rate data will be used for the exchange of currencies, which correspond to the «regulatory, operational and market requirements.»
The impetus for litecoin?
Some trade media have argued that the upcoming release of Litepay will lead to a significant increase in the current value of litecoin. However, no one knows for sure how the market will react to such an event if it does happen. In this case, apparently, the founder of Litecoin supports the initiative or at least interested in her – Charlie Lee is one of the subscribers account Litepay on Twitter.
Litepay is likely to face tough competition. Already, some other companies offer payment cards on the basis of cryptocurrency. In addition, many of these cards to support multiple cryptocurrencies. So Litepay will have to offer something much more interesting than its competitors to gain its market share. The only thing Litepay can do is to offer lower rates or no fees for cardholders, but instead to charge only sellers.
On the website Litepay still missing a lot of information. In particular, unknown to the founders and developers of the project. Despite the similarity in name, it is obvious that Litepay has nothing to do with Bitpay, another American processor of cryptocurrency payments. It seems that the market remains only to wait for the official launch of the project, which is scheduled for February of this year to get more information about the service.