Strike is an instant payment app (similar to Venmo or Cash App).
Strike allows you to buy and sell any amount Bitcoin without fees. To make a purchase, can link a bank account, debit card or credit card.
You can then send Bitcoin instantly using the Lightning Network for a tiny fee. You can also send national currencies like the US dollar to anyone.
Strike is available in 65 countries, and plans to expand to more. Strike was developed by Zap Solutions, a Chicago-based fintech startup led by entrepreneur Jack Mallers.
Strike App Fees
Here are the main fees associated with using the Strike app:
- Spread fee for buying Bitcoin: Strike charges a small spread fee when buying Bitcoin, which is approximately 0.65% of the purchase amount. This fee is applied to the difference between the current price of Bitcoin and the price at which you are buying it.
- Routing fee for using Lightning Network: When making transactions using the Lightning Network, Strike applies a routing fee, which is typically 0.15% of the invoice amount.
- Exchange rates: When buying or selling Bitcoin through the Strike app, the applicable exchange rate is presented to you before you confirm your order. This rate is calculated based on the Bitcoin bid and ask prices offered by Strike’s third-party service providers, with a margin applied by Strike and its service providers to earn revenue.
- No transaction fees for sending money: Strike allows users to send money globally with no transaction fees. This feature sets it apart from traditional payment methods, which often involve fees for international transfers.
- Future fee reductions: Strike aims to drive down fees as its volume grows. The company expects the routing fee to drop to as low as 0.1% in the future, as its partnerships with liquidity providers evolve.
About The Lightning Network
The Lightning Network is built as a second layer above the Bitcoin base chain to facilitate fast transactions with low fees. Bitcoin is the currency used in both, but Lightning transactions are often denominated in satoshis (one hundred millionths of a single bitcoin).
