Crypto-Payment Platform Designed for Easier Payments
LitePay, Litecoin’s much-anticipated crypto-payment platform, is scheduled to be launched this week. The Litecoin Foundation announced that it had been working on its new payment tool back in December 2017. According to several reports, the payment system intends to make Litecoin as usable as fiat currencies. If it works as planned, then retailers will be able to instantly process LTC payments from anywhere.
With LitePay, it should become easier for businesses to directly settle payments with financial institutions, and process payments in general. Additionally, the crypto-payment system will feature an open source LitePay wallet, which will be available for desktops and smartphones. The wallet will allow users to easily manage all their Litecoin transactions. Perhaps one of the best offerings of Litecoin’s payment processor will be the LitePay Card. Cardholders will be able to load fiat money (USD, EUR, etc) onto their cards without any additional charges. These cards should then be usable wherever VISA cards are accepted.
An E-Commerce Payment System
LTC payments through Litecoin’s crypto-payment system will have the option to be instantly converted to fiat currency. According to LitePay’s official website:
“Use LitePay’s retail, e-commerce, billing, and donation tools to accept payments from customers anywhere on earth. Receive settlement from Litecoin payments directly to your bank account in your own currency, with zero price volatility or risk.”
One of the primary concerns people have when they receive payment in cryptocurrencies is that their prices are extremely volatile. For example, let’s say you sell your used smartphone for $100 worth of bitcoin. Then, let’s say you want to convert your bitcoin payment into dollars. So, when you do that, you end up only getting $70 for your phone because bitcoin prices go down. Clearly, you would have been much better off just accepting the much more stable USD. Apparently, this problem will be solved with LitePay since you’ll be able to immediately convert to a fiat currency.
Significantly Lower Fees
Already, LTC transactions have been reported to be faster than similar BTC transactions. They’re also generally more cost-effective. Now, Litecoin’s new crypto-payment platform will only charge a 1% transaction fee. If you compare this to the average 3% transaction fee charged by most credit cards, then LitePay seems to be the better payment option. Also, if you consider that BitPay, Bitcoin’s equivalent to LitePay, charges a whopping $5 for transactions then LTC transactions appear to be more preferable. Notably, transactions with BTC are a lot slower compared to most transactions with other major cryptos.
Although this new crypto-payment system from Litecoin seems to be a step in the right direction, as it attempts to solve some of the problems that have plagued crypto for a long time, there are quite a few drawbacks. For instance, credit cards offered by major banks have begun to decline crypto-related purchases. One of the main reasons that have been cited for this is that the financial institutions want to make sure that they are in compliance with regulations. Given that regulators have been scrutinizing the use of cryptocurrencies worldwide, there’s no guarantee that Litecoin’s crypto-payment platform will be considered a safe and legal payment option. Therefore, we’ll just have to wait and see how authorities respond to LitePay, and whether it’s even an effective transaction system.