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Following Bitcoin transaction costs reaching dizzying heights, Litecoin has emerged as an alternative for peer-to-peer transactions. A new service called Litepay is ready to launch this month. The service will allow businesses to receive payments in Litecoin, and can even provide Litecoin cards.
The idea behind Litepay
According to the official website, Litepay's goal is to offer much lower transaction fees than credit cards. They will also allow traders to withdraw without risk of volatility. In comparison to credit cards, representatives say they will charge a one-cent fee to merchants. Conventional credit cards charge up to three percent in processing fees.
The site also details how they will provide their payment cards that will use a Litecoin balance.
First, a potential customer orders the card and pays a fee for it, then they check his ID, and finally he receives the card. After activating the card, he can transfer the Litecoin to his designated account, then spend it at any place where "debit cards are accepted, or withdraw money in any compatible ATM. "
The site even suggests that users could have their salary deposited directly in the card to convert it to Litecoin. However, the website does not indicate any charges that users may have.
For example, start up costs and individual transaction costs are not listed. In addition, it does not specify which payment network the cards will use. It does not specify whether it will use Visa, MasterCard or any other provider and does not specify if there are residence-based usage limits.
To determine the exchange rate, the site indicates that it will use a published exchange rate that will meet its "regulatory, operational and market depth requirements".
A boost for Litecoin?
Already, some new crypto sites claim that the imminent release of Litepay will result in significant increases in the current valuation of Litecoin. But no one knows how the market will respond to the launch of Litepay.
Litepay received Twitter attention from the Litecoin Foundation. Naturally, Litecoin's creator, Charlie Lee, is a follower of the account.
Litepay will likely face fierce competition. Already, some competitors offer payment cards financed by cryptocurrencies. In addition, many of these options support multiple crypto-currencies.
Therefore, Litepay will have to offer something significantly different or superior to the competition to stand out. One thing they could do would be to provide lower or no fees for cardholders, and instead charge only merchants.
The Litepay website still lacks a lot of information, and currently all of its "Start" buttons seem to be doing nothing. The market will just have to wait for the official launch when he can learn more about how the service can work. If he succeeds, he could at least make the Litecoin known to the general public.
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