Chicago based Bitcoin payments startup Zap partners with Visa,raises $3.5 million to scale operations

The payments startup has quietly announced that it has raised $3.5 million. Zap partnered Visa is looking to enhance it's Bitcoin payments system.

By · Jul 17, 2020 . 5min read

Source – Unsplash

Bitcoin payments system startup Zap has recently partnered with Visa. It has now quietly announced that it had raised $3.5 million dollars a few months ago. This apparently became noticeable, thanks to the documents filed with the US Securities and Exchange Commission. The young CEO of Zap, Jack Mallers, decided to finally address his company’s progress.

Zap’s goal is to address the inconvenience of dealing with Bitcoin. They have built a payments system called the Lightning Network. Usually, it takes around 10 minutes to settle payment through Bitcoin. However with Zap, payments are settled instantly with Zap’s Lightning Network. It also sidesteps the transaction fees involved with Bitcoin. The fee is not too high but discourages people who want to make small transactions.

Jack Mallers tweeted

Initially, Zap’s payment system was mainly used by content creators. Video game streamers and adult film actors would receive tips from their viewers. Mallers is of the opinion that most of his users are not even aware that their actually using Bitcoin when they’re spending their dollars. Such is the smoothness of his payments system.

Zap is trying to implement the same practice as Visa. Similarly, like how Visa issues credit/debit cards to settle payments quickly, which would otherwise take up to 3 days with a bank. Morgan Creek’s Anthony Pompliano believes that Jack Mallers and his company can help make Bitcoin the Global Reserve Currency.

At this moment in time, Zap only employs 13 people. Mallers hopes that with the new investment they can bring in business development experts who will truly help the company grow. Although, the other obstacles include the fact that most Bitcoin users right now are either investors or individuals who use it for illicit purposes.

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