Lightspark, a company specializing in Bitcoin Lightning Network (LN) payments, has introduced a groundbreaking new solution called Lightspark Extend.
This new feature allows businesses across the United States to send instant Bitcoin payments directly to bank accounts through the Lightning Network, making digital payments faster and more accessible than ever before.
Lightspark Extend is designed to bridge the gap between the world of digital currencies and the traditional banking system in the U.S.
It connects Universal Money Addresses (UMA) and Lightning-enabled wallets, exchanges, or bank accounts, providing businesses with a seamless, low-cost, and compliant way to make instant payments.
David Marcus, founder and CEO of Lightspark, demonstrated the solution on his social media, showcasing how each payment is sent and settled almost in real time.
He highlighted the potential for Lightspark Extend to increase the adoption of the Lightning Network by making it more accessible to businesses and individuals alike.
Lightspark is also a partner of Coinbase, which has enabled the giant digital asset exchange to execute Lightning Network transactions.
Through their partnership, Coinbase customers can now use the Lightning Network to send Bitcoin transactions instantly, with a limit of up to $10,000.
Digital asset exchanges such as Coinbase, Bitso, and Nubank utilize Lightspark’s services to enable Lightning Network support for deposits and withdrawals.
Lightspark Extend allows businesses to sign up for a UMA address, which functions like an email address for money transfers. Instead of dealing with lengthy codes or complex passwords, users can make payments using an easy-to-remember address, similar to sending an email.
This approach simplifies the process and reduces the friction often associated with digital payments.
Once registered with a UMA address, businesses can link eligible bank accounts through a process facilitated by Zero Hash, a regulated U.S. financial institution.
This integration enables businesses to send payments 24/7, without the need to wait for traditional banking hours. Payments are transferred directly to recipients’ bank accounts instantly, providing a faster and more efficient way to handle transactions.
One of the key advantages of Lightspark Extend is its compatibility with the vast majority of U.S. banks. “Extend is compatible with over 99% of U.S. banks that accept real-time payments,” said Lightspark in their announcement.
This broad compatibility means that almost any business in the U.S. can use this new solution to offer lightning-fast payments to their customers.
The introduction of Lightspark Extend is particularly beneficial for businesses that operate across multiple time zones or require urgent payments outside of regular banking hours. Its 24/7 availability ensures that transactions can be processed at any time, day or night, without delays.
The launch of Lightspark Extend marks a significant milestone for the company as it expands its services to the U.S. market.
UMA, the Universal Money Address protocol, is already available in 120 countries worldwide, with companies like Coins.ph in Asia, Ripio in Latin America, and Youhodler in Europe offering UMAs to their customers.
Now, with Lightspark Extend, U.S. businesses and consumers can also benefit from this instant payment solution.
Marcus has a bold vision for the future of the Lightning Network. In a statement earlier this year, he stated his belief that Lightning Network would evolve into the global settlement system for various currencies. He stated:
“Any corporation that needs to move money will end up using, directly or indirectly, LN and Bitcoin.”
Lightspark Extend also represents a step toward greater financial inclusion by democratizing access to fast, low-cost payments.
From small e-commerce stores to large enterprises, businesses of all sizes can leverage this new feature to provide a better payment experience for their customers.
For sending institutions, Lightspark requires that they have Lightning payment integration and implement the UMA protocol.
For recipients, the company offers a seamless onboarding portal, allowing them to receive UMA-powered payments with a real-time payments-enabled account linked to their UMA address.
The announcement also emphasized the importance of compliance and security. All transactions are handled through Zero Hash, a regulated U.S. financial institution.
However, it’s important to note that digital assets managed through Zero Hash are not covered by Federal Deposit Insurance Corporation (FDIC) or Securities Investor Protection Corporation (SIPC) protections.
As Lightspark states, “Zero Hash accounts are not subject to FDIC or SIPC protections, or any such equivalent protections that may exist outside of the U.S.”
The launch of Lightspark Extend is a major step in the evolution of digital payments, enabling businesses and consumers to make instant Bitcoin payments with ease.
By linking the Lightning Network to U.S. bank accounts, Lightspark is helping to bring Bitcoin into the mainstream, offering a fast, low-cost, and efficient way to transfer funds.
