Proposal: Lightning Pay
- Billions(?) of BTC is locked up from being used for commerce due to high transaction fees. This means a new customer base for merchants.
- Micropayments serve a largely untapped market as selling products/services at < $2 ($5?) is not feasible with today’s technology (see e.g. paying for content)
- Crypto (payment) solutions provide terrible user experiences
A buyer-focused payment gateway that offers instant transacting and negligable fees on behalf of the merchant.
- Payments can be done through BTC, stablecoin, or fiat 1
- The lightning network provides a good technology standard to build on top of
Buyers fund a Lightning Pay mobile wallet with a small working amount (e.g. $100) as their hot wallet “checking account”. 2
Integration with the lightning network is an implementation detail and is opaque to the users. All they experience are low transaction fees.
Merchants will use the same payments app to recieve funds on day 1, but eventually will be transitioned to a Stripe-like payment portal.
Depending on the customer segment (e.g. merchants on ecommerce sites; creators vs tipping, etc. may be required for more seamless payments.
The table below lists use cases and customer segments we could apply this payment processing system to.
|Use Case||Segment||Distribution Channel||Incentivize Usage|
|Any eCommerce||Any Shopify/Wix/etc. Merchant||eCommerce Platform Apps||1. Share cost savings with customers
2. Exclusive deals/promos with users (marketing/communication channel a la Shop App)
|Gateway infront of “Micro” Digital Content||1. Creators creating “micro” content (e.g.) single digital image, song, etc.
2. Stock / royalty-free content (B2B that forces customers to buy credits or is bundling content; lower barrier to entry)
|B2B relationships/outreach (Any Gum Road techniques?)||More sales for merchants, lower barrier to entry for buyers|
|Tipping||Social Network Users||Social Networks (Twitter, Telegram, Slack [Remote Team Apps], Reddit, etc.)||Virtue Signalling3|
|Tipping Streamers||Twitch/YouTube Streamers||Streaming Platform Apps; Have creators promote so they can make more $$$||Lower Fees, Smaller Payments|
|PPV to replace Ads||Journalism, Bloggers||B2B to Websites using Ad-blocker tools (like Admiral)||An ethical way to support journalism|
|Send Money to Friends/Family||…||…||…|
|Sending Money Overseas to Family||…||…||…|
|Low-Price Offline Payments to replace Cash-Only||…||…||…|
|Pay Temp-Workers To Get Hourly Payouts||…||…||…|
Fiat will likely be routed through local exchanges and will incur fees until we can do this ourselves. Even today, the fees would only would be around half of a payment gateway like PayPal/Stripe. This fiat off-ramp however will almost certainly require KYC. ↩