Strike app explained: What is it and how it works

What is the Strike app and what role does it have to play in the world of payment apps?

The remittance industry is currently dominated by giants like Western Union, Euronet, Moneygram, and chiefly PayPal, which has a market share of just over 50%. While the big four continue to reign supreme, emerging blockchain-based money transfer firms may start eclipsing smaller players in the industry, thanks to cheaper charges and faster transactions. 

What is the Strike app?

Strike is a blockchain-based mobile payments app. It is the brainchild of the Chicago-based fintech firm Zap Solutions. Strike was launched in 2020, with operations beginning in the US but ambitions of expanding to focus on emerging markets like Latin America​.

Strike utilizes Bitcoin’s Lightning network, a secondary layer on the Bitcoin network created to enable faster transaction speeds outside the leading network. Thanks to its utilization of blockchain’s decentralized systems, it offers customers a peer-to-peer (P2P) transaction system. 

In simpler terms, there are no intermediaries handling one’s finances; money is transferred directly from sender to 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 to both Android and iPhone users, as well as on the Chrome web store software for desktop users. 

Registration involves submitting your full name, email address, and phone number. You will receive an email and a message prompt to verify the 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 app

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

Users can then link their Strike account to their preferred bank account with the platform as prompted. A credit card number will also do.

After availing a bank account or credit card details, Strike utilizes the services of Plaid, a firm well-versed in connecting apps with financial services to link accounts. From there, it’s as easy as keying in the money figure you intend to load and pressing send to top up the strike account.

Sending via the account

Once the account is set up and funds loaded, users have several options to select from, one of them being to send funds. For that, they need a crypto wallet linked with Strike. Since the platform is based on the Bitcoin project, the wallet needs to be Bitcoin supported. 

After the wallet address is connected to the Strike app, the sender just needs to add the recipient’s wallet address. That should be sufficient for small-value transactions, but there are a few more requirements for high-value transactions. 

A top-up worth $1,000 worth of BTC or more needs more know-your-client (KYC) steps to be fulfilled. 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 crypto-based transfers due to their high anonymity levels.

Other specialized transactions on offer

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

First, there is the Bitcoin payment option. To tap into the gains made from the price gains of BTC, users have the option of receiving paychecks in Bitcoin. This involves navigating to the profile at the bottom right, selecting ‘direct deposits, and opting for the USD/BTC percentage configuration of choice.

There’s also a recurrent purchase feature that could be useful for regular pocket money transfers or rent. Known as dollar-cost-averaging, it’s accessible on the BTC tab and by clicking on the ‘buy’ button. After that, users may enter a USD figure and the purchase frequency. Options increase over time, be it hourly, daily, weekly or monthly. However, the feature is only available in the US to clients who have KYC compliance verification.

Transaction costs

The Strike app charges a fee with the Bitcoin blockchain on any transaction done on the platform. The on-chain cost is a payment to miners for transaction verification. The price is 1 Satoshi, Bitcoin’s smallest widely accepted denomination, equivalent to $0.00059. 

Rewards

Strike offers cash back when using the platform as a means of payment. It is outlet and product specific, with a range of between 5% up to 15% with no transaction fees. However, the number of outlets served is quite limited compared to credit card acceptance rates among merchants.

Is the Strike app safe?

No payment app is entirely immune from risk; however, the Strike app implements the same security measures as most Bitcoin exchanges, including two-factor authentication. The app also works in partnership with Prime Trust, LLC, a state-regulated trust company, which helps guarantee the safety of users’ funds. In a Strike app review, CryptoVantage rated the app four out of five stars, praising its “nearly instantaneous transactions”

Conclusion

Blockchain-based payment apps may likely be the next global evolution of money transfer and payment platforms thanks to two key factors: meager transaction fees and fast speed. 

The Strike payment app is positioned well to reap the benefits thanks to its utilization of Bitcoin, the world’s largest blockchain. Its adoption of the Lightning network layer solves the issue of high transaction costs and jammed speed synonymous with the main chain.

However, as with any platform, it is up to individual users to decide whether it’s suitable for them. Before transferring any funds using Strike or any other app users should ensure they do thorough research, taking into account their financial requirements, user reviews, and customer support options.

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