How to set up Strike Bitcoin Lightning payroll

Strike overtakes BitPay in onboarding

Strike reached a 500,000 user milestone in September, overtaking BitPay’s merchant onboarding. Strike is a Bitcoin-native neobank. It uses the Lightning Network to convert fiat currency to bitcoin. This method prevents taxable events for users because the user does not contact the bitcoin asset directly. Users connect a conventional bank account, wire transfer, or debit card to the Strike app. For payroll, users direct deposit their salary to Strike. This feature allows users to convert up to 100% of their paycheck to bitcoin. Fees for this conversion are waived for up to $20,000 per month. Strike permits transactions from $1 to $2,500,000 and provides target orders for users to buy during market dips. While BitPay remains a major player with 2011 origins, its Lightning Network usage grew 238% since April 2022. BitPay targets cryptocurrency investors and developers. BitPay requires a $20 minimum for USD settlement to US banks via ACH. BitPay also limits USD settlements outside the US to a $10,000 minimum via wire. Strike is a Series B company with $98.40M in total funding and 64 employees. A few users report a need to remove and re-add payment methods through Plaid to use bank transfers.

Managing the payroll process

The payroll process involves several direct steps. First, the employee links a bank account, wire transfer, or debit card. The system debits the sender’s bank account and converts the funds to bitcoin on the Lightning Network. This process sends the bitcoin instantly to the recipient. A recipient’s account on Strike receives the funds in the chosen currency. For example, a $10 transfer from the US to Europe results in €8.2 for the recipient. Because bitcoin markets operate 24/7/365 and possess sufficient liquidity across dozens of currency pairs, the resulting rate for a conversion does not deviate from the standard Forex rate and ensures that users receive value close to the expected market price. You should prepare to submit a photo of your ID for identity verification. What happens to users who cannot verify their identity quickly? The sender and recipient never touch the bitcoin asset during the transaction. This prevents the tax consequences found in traditional crypto trades. A $10 payment within the Lightning Network costs three satoshis, which equals $0.0015 or 0.015%. Strike sends remittances directly to mobile money wallets or international bank accounts in 14 supported countries, including Mexico, the Philippines, and Nigeria. Bitwage has already processed the first Lightning payrolls for a CEO and a professional soccer player. They partnered with ACINQ, a French startup, to help secure inbound liquidity for these transactions, where ACINQ leverages its large Lightning node.

Comparing Lightning payment processors

Strike’s fee structure differs from BitPay. BitPay, founded in 2011, charges 2% plus $0.25 per transaction. BitPay also limits USD settlements outside the US to a $10,000 minimum via wire. BitPay requires a $20 minimum for USD settlement to US banks via ACH. Strike, founded in 2020, provides transparent fees as low as 0.49%. Strike is a Series B company with $98.40M in total funding. Strike provides the most competitive fees for small-scale payroll users. Other options like NOWPayments support 350+ assets with a 0.5% fee for same-coin payments. NOWPayments provides Mass Payouts via API, CSV, or email. CoinGate, a MiCA-licensed provider founded in 2014 in Vilnius, charges a 1% fee and supports 70+ cryptocurrencies. CoinGate provides fiat settlement through SEPA/SWIFT. Bitwage, headquartered in San Francisco, California, has already processed the first Lightning payrolls for a CEO and a professional soccer player. 0xProcessing uses a Volatility Risk Control System to auto-convert incoming crypto into USDT or USDC. 0xProcessing has no mandatory checkout branding. Coinbase Commerce charges a 1% fee and is a custodial service. Triple-A is Singapore-based with MAS licensing and handles 30+ local currency payouts. BVNK is ISO 27001 certified and settles stablecoins into bank accounts via SEPA or SWIFT.