Cryptocurrency Litecoin is due to release its new payment processor LitePay within the next week or so. It’s an important development for the altcoin, as it will enable retailers to accept payments in Litecoin from anywhere in the world, instantaneously.
Users will be given a Litecoin from where they will be able to load all or a portion of their Litecoins on to a LitePay card. These cards are completely Visa-compatible and are expected to be accepted worldwide as a result.
The launch of the LitePay system is expected to cause a massive surge in the value of LiteCoin when it happens on 26th February.
In effect, the LitePay card is a pre-paid credit card, with funds being loaded on to it in advance of use. With the value of the coins determined by the value of the market, what is on your card can fluctuate according to current trends. Linked to the blockchain, it will enable instant payments, something which is not currently possible with other cryptocurrencies. Even Bitpay – Bitcoin’s equivalent to LitePay – can take quite some time to process payments, which has been a sticking point to potential partners getting on board.
By comparison, LitePay will instantly settle payments directly with the vendor’s bank, dealing with rate conversion and transfers immediately at the point of sale. Its uses are not just for retail outlets, either. Functioning, to all intents and purposes, as a regular Visa debit card, the LitePay card can be used to make business-to-business (B2B) transactions too.
It’s a win-win situation for both vendors and customers, allowing an alternate revenue stream secured by the blockchain and the payment processing software for the former, and greater opportunity of choice in terms of cryptocoin liquidity for the latter.
With transaction fees of 1% for each transaction made through LitePay, the new system will compare favourably with standard fees for credit card payments which tend to be around 3%, and BitPay’s flat rate of $5.00 per transaction.
All in all, the next few weeks promise to be an exciting time for LiteCoin users and investors.