Bitcoin-based Lightning Network enables cross-border payments in Mexico, boosting crypto adoption.

A company that facilitates Bitcoin payments, called Strike, has expanded its cross-border payments service to Mexico. The company hopes to take advantage of Mexico’s large remittances market.

Starting from June 14, 2023, the company has made its ‘Send Globally’ service available in Mexico, the third largest country in Latin America. This service allows users to send money across borders, providing a convenient solution for international transactions.

According to data from BBVA Research, Mexico is the largest payments market in the United States.

Strike’s digital payments service processes approximately 95% of remittances sent from overseas to Mexico.

With this expansion, U.S. dollars sent to Mexico via Send Globally will be converted to Mexican Pesos in the recipient’s bank account, further establishing Strike’s presence in Latin America.

The announcement follows the recent decision by Strike CEO and co-founder Jack Mallers to bring the company’s custody operations in-house, eliminating the need for intermediaries.

Notably, the company has set up a headquarters in El Salvador for its global arm in an effort to expand its app to more than 65 countries. However, the primary headquarters remains in Chicago.

The Send Globally service runs on the Lightning Network, a Layer-2 payment protocol built on top of Bitcoin, which enables cheap and fast transactions, making it an attractive solution for the remittance industry.

This service comes at a time when network congestion is a big concern, as witnessed recently when Binance exchange complained of Bitcoin network backlog.

This move by Strike will provide a better alternative for 12 million Mexican Americans who often suffer from high fees, slow settlement, and lack of innovation in incumbent cross-border payments services.

It also indicates the increasing acceptance of cryptocurrencies, as countries and companies actively work on developing the necessary infrastructure to foster innovation.

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