For years, Visa has been the unchallenged king of the credit card world. Now the Bitcoin-based Strike is making a play on the throne.

The Decentralized finance (Defi) ecosystem has completely revolutionized how people view money. At the same time, most people have their eyes fixed on NFT and Cryptocurrency. The more adventurous investors are highly engaged in the metaverse. Ironically, the newest addition to the financial world is hardly considered a viable replacement for the existing money giants. It is strange that in a world of constant change, people still expect the credit kings of the Old to stick around. The question remains, can Bitcoin-based Strike compete or potentially displace Visa?

What is Strike

Strike is the new kid on the blockchain and is nothing but possibilities. It is a digital wallet, like MetaMask and Coinbase, but in some ways, it has evolved passed these other crypto wallets. Strike operates on the fastest version of the Bitcoin network, which has unlocked the credit kingdom’s key. The speed of this Bitcoin version allows users to enjoy unprecedentedly low transaction fees. This enabled Strike to become the first ever digital wallet to compete with the existing credit and debit cards, Visa and Mastercard, for daily transactions.

Strike uses Lightning network technology which employs a 2-layer solution in crypto parlance. This validation mechanism enables the Bitcoin blockchain to collect clusters of transactions and rapidly validate them as a group. This saves on transaction speed and costs. It is miles ahead of the base version of the Bitcoin network.

There is no wonder why the tech world has hopped on board. This is probably why Twitter’s payment and tipping services are already utilizing Strike’s payment platform. Merchants who use Strike are not enslaved to the blockchain and have the opportunity to opt out of Bitcoin. They are allowed immediate conversion to the U.S. dollar. According to Strike’s founder, over half of all America’s businesses will switch to Strike as their payment method of choice by 2023. Jack Mallers is one ambitious businessman as he posits that after Strike overtakes Visa, it will rise to challenge the Western Union as a remittance service.

As of 2022, Strike has secured over $80 million in investments. In an interview with Fortune, Mallers said that the money would be used to develop retail partnerships with Wendy’s and Starbucks; the latter already accepts Bitcoin as an online payment method. These partnerships will increase the popularity of Strike’s usage across the country and ultimately improve the retail experience for sellers and buyers alike.

The Man behind Strike

“Money can not be created out of thin air. Creating money can not be free. I like money that is bound to the physical world with energy. Call me crazy, but I prefer something like that.”

— @jackmallers

Jack Mallers, the ingenious founder of Strike, is a Chicago native. His father built and sold his impressive futures brokerage. This set the Mallers family up for life, but that was not enough for the Fin-tech mogul, Jack. He wanted to make a name for himself. His father’s business inspired him to enquire about the future of the finance world. This led the 28-year-old to the logical path to the future of finance, Cryptocurrency.

His journey into the decentralized finance (DeFi) world inspired him to investigate the future use cases of the DeFi space and its overlaying blockchain technology. One cryptocurrency blockchain network caught his attention. Bitcoin. He posited that Bitcoin (BTC) could be used to replace the current debit and credit companies. He accused Visa’s tenure of being “monopolistic, anti-American.” This inspired Jack Mallers to delve headfirst into the selected cryptocurrency, and a wave of investments followed him.

He is known as a “Bitcoin Maxi,” a slang term for people devoted to the original cryptocurrency and suspicious of new blockchain projects like Ethereum and Litecoin. Strike’s found is adamant that Bitcoin is the only coin that Strike needs to operate at its total capacity.

When asked about the future of crypto in Strike, Jack’s reply was decisive, “It’s purely for Bitcoin. It’s all we need.”

Why has Visa dominated for so long?

Much like in blockchain, the traditional finance world also has its favorites. While the brick-and-mortar banks used to rule the finance world, Visa and Mastercard came up with the rise in technological innovation. This led to the two companies quickly securing a monopoly over the market. In 2022, Visa will be the global credit card leader and boasts over 2.5 billion issued cards. This ensures that the company is the uncontested ruler of the credit game.

Visa is not a full-service bank. It serves as an intermediary between customers and banks. It facilitates expedient transactions at physical merchants and online. This was unheard over only 50 years ago. This alone was enough to allow Visa to reign for as long as it has. But we have entered the era of Web 3, and everyone is not only buying products online but also buying digital assets. In this world, Visa doesn’t have a leg to stand on.

However, this behemoth is still optimized for processing payments and facilitating e-commerce transactions. Despite lacking a blockchain foundation, it can still compete if it develops the essential framework to accommodate blockchain transactions.

Strike versus Visa?

Strike	Visa
Innovative – powered by Lightning Network and Bitcoin.	Leader of the credit card game
Appeals to crypto investors	It has a strong foundation in the finance industry.
Is protected against cybercrime-related theft	It is already in use in over 190 countries.
Fast transactions	Fast transaction
Cheap to zero transaction fees	Standard bank transaction fees

 

Can Strike overthrow Visa?

Visa has ensured that it keeps up with changing trends and demands in the financial industry, but we are in a new digital era. Web 3.0 has allowed technology like DeFi and blockchain networks to facilitate transactions between non-fiat currencies. Visa is not prepared for this kind the transaction native to this new era of the internet. That does not mean that Visa will easily be displaced as it has firm roots in the financial industry, physical and online.

Strike is the answer to this gap in the market. The US-based Bitcoin banking company has plans to roll out a physical debit card in the United States, United Kingdom, and Europe this year. Strike has also announced plans to incorporate alternative FIAT currencies, USDT, USDC, EUR, GBP, and CHF, onto their platform once the original card is released to the public.

Jack Mallers has also involved his other company, Zap, in the payroll process of the Strike debit card. Zap is a US-based startup that Lightning Startup. The integration of Zap into Strike’s payment structure will allow Strike to act as a vertical banking service that fully absorbs Visa’s Direct network. The Strike app will enable the platform users to send lightning payments using their bank account or debit card.

Strike’s superb performance has even won the support of Morgan Stanley. Morgan Stanley notes that with the help of its Lightning Network-based payment platform, Strike is a viable rival to the credit giant Visa.

A problem persists when it comes to engaging in cryptocurrency transactions. Due to its online nature, it faces a slew of cyber threats. On top of that, cryptocurrency, especially Bitcoin, is vulnerable to high volatility due to its digital nature that is untethered to a physical hold of value. There are, however, ways for Strike to overcome these downfalls. This is by supporting the wide adoption of Bitcoin, which will stimulate international governments to actively engage in the legislature surrounding Bitcoin and other blockchain technologies to secure them, like physical assets.

However, anyone who has ever glanced at the FIAT currency market knows that the slight shift in international events can trigger the US dollar or British pound to go haywire. So, what is some volatility between friends if those friends are both getting value out of the transaction?

The future of Strike

The road ahead of Strike is not going to be a smooth one. Not only is the company inventing the path it needs to walk, but it must also educate its users at every step. Mallers knows that using the existing infrastructure is the best plan forward. Therefore, Strike is absorbing part of Visa’s direct network. This is fused with traditional FIAT currencies and the familiar debit and credit cards. By combining facets of the existing financial process, Strike decreases the learning curve for their new customers who might not be as familiar with cryptocurrency.

While many still turn their nose to the idea of Bitcoin taking on credit card tycoons, Strike already has some traction in e-commerce and retail. With the likes of NCR, Starbucks, and Shopify utilizing its payment mechanism, Strike has secured its footing in digital finance.

The Morgan Stanley report has even gone to Twitter to say, “we are at the beginning of an era where more and more consumers may over time choose to pay for goods using Bitcoin and cryptocurrency.” So, they’re betting on Strike for the long haul.

Strike paving the way to the financial world of tomorrow. They are a US-based company, but Strike is currently pursuing partnerships with exchanges and firms like Bittrex, CMT, and Visa to launch their Neobanks. Yeah, with Jack Mallers at the helm of the Strike ship, it’s sailing right into the fin-tech hall of fame.

The question remains, are you ready to make the switch?