I just integrated Litecoin as a payment method in my app. Here is why.
For background, I’m an entrepreneur who used to work for a major cryptocurrency. So I know the different cryptocurrencies rather well.
I recently started developing ploties.com, a premium chat app with in-app payments. Basically guys pay girls for chatting by the minute. I started the app with PayPal because it is an obvious solution. However, it is a true pain in the ass:
PayPal is taking a cut of 70 cents for a $10 deposit. That is 7%. My platform charges a 20% platform fee. Which is already a good chunk. I don’t want to give away 35% (!!!) of that to PayPal just for the deposits.
Then PayPal also charges currency conversion and withdrawal fees. I have passed the withdrawal fees on to the creators. However in effect that is only increasing the platform fee from 20% to 23-27%.
Also PayPal has a lot of restrictions irt how it may be used. They do not want to be used for adult transactions and have the power to just shut down your account from one day to another. I do not want to be told by PayPal what I can do or feel like they own me. And that after they make more money from my platform than I do.
Needless to say, I was looking for alternatives. Unfortunately all the major payment processors charge the same rates. Also they are a PITA to integrate.
I knew that cryptocurrency would be the solution. My major issues with using crypto instead are still insufficient adoption to make them the only accepted payment method and potentially use case destroying fees (see BTC and ETH) as well as slow transaction times.
However, I noticed that Litecoin pretty well fixes the latter two. I can currently send a transaction for less than 1 cent in 5 minutes. With a good mobile wallet it’s almost as easy as using PayPal.
While adoption remains an issue for the time being, I believe this is going to get much better over the coming months as more people buy cryptocurrency.
Another reason why I chose Litecoin was that it is a major, well established cryptocurrency, which makes it widely supported on mobile wallets and cryptocurrency exchanges / gateways. Also it made integration so much easier for me because I could find a good third party API.
Litecoin isn’t very attractive or hyped up in the crypto space. And I do not HODL any. But it’s fair to say: It’s working and it’s working well. It’s fast, cheap, intuitive and established. That’s why I chose to integrate it into my app. And if I am representative, then that should be a good sign for the future of Litecoin.