What is it and how it works

What is Strike and what role should it play in the world of payment apps?

The remittance industry is currently dominated by giants such as Western Union, Euronet and MoneyGram, led by PayPal, which have a market share of just over 50%. While the Big Four continue to dominate, blockchain-based money transfer startups may begin to overtake smaller players in the industry, thanks to cheaper fees and faster transactions.

What is the Strike application?

Strike is a blockchain-based mobile payment application. It's the brainchild of Chicago-based fintech company Zap Solutions. Strike launched in 2020, with operations starting in the US but expansion ambitions to focus on emerging markets such as Latin America.

Strike uses Bitcoin's Lightning Network, a secondary layer on the Bitcoin network created to enable faster transaction speeds outside of the leading network. Thanks to its use of decentralized blockchain systems, it provides customers with a peer-to-peer (P2P) transaction system.

In simpler terms, there are no intermediaries handling their financial affairs; Money is transferred directly from the sender to the recipient.

How does the Strike app work?

As with most mainstream payment apps, the first step involves opening an account.

The Strike payment app is available for both Android and iPhone users, as well as on the Chrome Web Store software for desktop users.

Registration involves providing your full name, email address, and phone number. You will receive an email and a message asking you to verify your email address and phone number, respectively.

The app is currently available in over 95 countries, with plans to expand its reach.

How to use the Strike application

After opening a Strike account, users are required to transfer some money to it before making any transaction. The platform's on-ramp feature makes this a fairly straightforward process.

Users can then link their Strike account to their preferred bank account on the platform as required. A credit card number will also work.

After availing the bank account or credit card details, Strike uses the services Man'ousheh, a company well versed in linking applications with financial services to link accounts. From there, it's as easy as entering the financial number you intend to upload and pressing submit to populate the strike account.

Sending via account

Once the account is set up and funds are loaded, users have several options to choose from, one of which is to send money. To achieve this, they need a cryptocurrency wallet linked to Strike. Since the platform is based on the Bitcoin project, the wallet must be backed by Bitcoin.

After connecting the wallet address to the Strike app, the sender just needs to add the recipient's wallet address. This should be sufficient for small value transactions, but there are some additional requirements for high value transactions.

Topping up $1,000 BTC or more requires more know-your-customer (KYC) steps. Senders will have to provide their address and Social Security number. This is in order to combat money laundering activities, which can be common in cryptocurrency-based transfers due to their high levels of anonymity.

Other specialized transactions on offer

While simple money transfers are the main service, other options also exist within the platform.

First, there is the option to pay in Bitcoin. To cash in on Bitcoin price gains, users have the option of receiving paychecks in Bitcoin. This involves going to Profile at the bottom right, selecting “Direct Deposits,” and choosing your preferred USD/BTC percentage configuration.

There is also a recurring purchase feature that can be useful for transferring pocket money or rent on a regular basis. Known as dollar cost averaging, it can be accessed through the BTC tab and by clicking on the “Buy” button. After that, users can enter the USD number and repeat the purchase. The options increase over time, whether that is hourly, daily, weekly or monthly. However, the feature is only available in the US for customers who have verified KYC policy compliance.

Transfer expenses

Strike charges fees using the Bitcoin blockchain for any transaction made on the platform. The on-chain cost is a payment to miners for verifying the transaction. Price 1 Satoshithe smallest widely accepted denomination of Bitcoin, is equivalent to $0.00059.

Rewards

Strike offers cashback when you use the platform as a payment method. It is outlet and product specific, with a range of 5% to 15% without transaction fees. However, the number of outlets served is very limited compared to credit card acceptance rates among merchants.

Is Strike safe?

No payment app is completely immune from risks; However, Strike implements the same security measures as most Bitcoin exchanges, including two-factor authentication. The app also works in partnership with Prime Trust, LLC, a government-regulated trust company, which helps ensure the safety of users' funds. In a review of Strike, CryptoVantage rated the app four out of five stars, praising its “near-instant transactions.”

Conclusion

Blockchain-based payment apps are likely to be the next global evolution of money transfer and payment platforms thanks to two main factors: minimal transaction fees and high speed.

Payment app Strike is well positioned to reap benefits thanks to its use of Bitcoin, the world's largest blockchain. Its adoption of the Lightning Network layer solves the problem of high transaction costs and speed jams synonymous with the main chain.

However, as with any platform, it is up to individual users to decide if it is right for them. Before transferring any money using Strike or any other app, users should make sure to conduct thorough research, taking into account their financial requirements, user reviews, and customer support options.

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