How can I pay with Lightning?
This article is intended for those who use Lightning, i.e. want to pay with it.
We present the various use cases and describe the process of a Lightning payment
YouTube video: How to pay with Lightning?
There is an explanatory video about the article “How can you pay with Lightning?” on the Coincharge YouTube channel in German.
What is Lightning?
Lightning is not a new cryptocurrency, but is Bitcoin in a different form. Lightning is an application that is based on the Bitcoin blockchain and is especially suitable for payment processing. Lightning payments are particularly suitable for:
- Micro payments – A Lightning payment is suitable for amounts of less than one cent (micro payments) up to several euros
- Fast payments – Each of these Lightning transactions is received by the payer in just a few seconds.
- Low transaction fees – A Lightning payment costs the payer a fraction of a €-cent
- Anonymous – A Lightning payment is anonymous because the transaction is not recorded on the blockchain and is only known between the sender and the recipient of the payment.
We have addressed the question “What is Lightning” in more detail in a separate article entitled“What is Bitcoin Lightning?” and a separate YouTube video“What is Bitcoin Lightning?“.
Lightning app on the smartphone
A Lightning Wallet is required to use Lightning. As this video is aimed at beginners and users, we recommend installing a Lightning Wallet app on your smartphone. To get started, we recommend one of the following Lightning apps:
Wallet of Satoshi
muun Wallet
Breez Wallet
Blue Wallet
You can find an overview of other Lightning wallets at:
https://coincharge.io/lightning-wallet/
Some Lightning wallets are also presented in more detail there.
The most beginner-friendly Lightning wallet by far is the Wallet of Satoshi, which we will also use here for demo purposes.
Deposit Lightning with the Wallet of Satoshi
After you have installed the Lightning app from Wallet of Satoshi on your smartphone, you first need Lightning credit. Sats (the smallest unit of Bitcoin) can be deposited to the WoS via the Receive function. This can be done in three ways:
- Lightning
- Bitcoin
- Lightning Address
Use Lightning to set the amount you would like to receive. A QR code is generated, which you can now show to your counterpart or forward via share and email. After scanning the QR code, the Lightning payment is immediately credited to your Lightning app. By Bitcoin – If you have Bitcoin, you can send a small amount of it to the WoS. The Bitcoin will then be available to you as Lightning on the WoS. By Lightning address – A Lightning address looks like an email address. You can pass on the Lightning address and the payer can specify the amount to be sent to this Lightning address. If you now have Lightning, you can also use it to pay. You click on Pay in the WoS and then have the option of scanning a QR code to make a payment. To do this, we go to the demo page, where a single newspaper article worth a few cents is paid for. If you have now set up a Wallet of Satoshi on your smartphone and topped it up with a few Sats, you can try it out and pay with it.
Lightning applications and business models
The two examples have shown that Lightning payments are particularly suitable for small amounts. A Lightning payment is always well suited where coins or small amounts are used today. We would like to briefly present a few more application examples here.
Pay with Lightning at the machine
A very popular application at meetings of Bitcoiners is a Lightning Beer Tap. You scan the QR code and after a successful payment the beer flows out of the tap.
Satoshi24 is a cocktail machine from Bitcoin im Turm that works with Lightning. Select a cocktail, pay with Lightning and Satoshi24 automatically creates the cocktail you ordered. We show how to pay at the cocktail machine and the Beertap in a video that was made at the Bitcoin Conference 22 in Innsbruck.
In the Bitcoin Hotel Princess in Plochingen there is a juice machine (Juice Tab) where you can pay with Lightning.
In the same hotel there is a publicly accessible candy vending machine that accepts Lightning payments.
In El Salvador, you can pay with Lightning at McDonalds. You put together your order at the self-service terminal. Then select the Lightning payment method and pick up your order at the counter.
In the self-service area, the buyer takes the desired products and pays the corresponding amount to a displayed Lightning address.
In the farm store of the Lustenau cheese dairy, you can take the products you want from the fridge and then pay with Lightning.
In the YouTube video“Lightning payment at the self-service fridge at the Lustnau cheese dairy” you can see how to pay with Lightning on site.
In the following Twitter video you can see how you can pay for Grumsiner honey with Lightning.
- Matthias Steinig ⚡🟩 🌋 (@leblitzdick) June 8, 2020
At the Satoshi Bar, guests at the Bitcoin Hotel Princess can help themselves to drinks from the fridge and coffee machine. The drinks are then paid for using Bitcoin or Lightning by scanning the QR code. You can find out how to pay with Lightning at the Satoshi Bar in the video“Bitcoin Hotel Princess in Plochingen near Stuttgart“
Other use cases in the future could include
- Ticket machines
- Parking garage
- Charging stations for electric cars
Pay in store with Lightning
Owners of a Lightning Wallet can send Lightning payments to each other. To do this, the recipient of the payment shows their QR code on their smartphone, the payer scans the QR code and sends their Sats to this Lightning invoice. This means that any store owner or restaurant operator can also accept Bitcoin and Lightning payments without any major technical effort. The store owner installs a Lightning Wallet on their smartphone and can immediately accept Lightning payments. The following video shows how this works. Here, people pay with Lightning at Starbucks in El Salvador.
Some stores also have their own Lightning terminals, which are used to process Lightning payments.
The seller enters the invoice amount in these Lightning Point of Sale terminals. The QR code is displayed and the payer scans the QR code.
Pay on the Internet with Lightning
Paywall with Lightning.
Normally, these articles are only activated if you take out a subscription for the entire magazine. But what if you only want to read and buy a single newspaper article? Individual newspaper articles can be paid for and activated via Lightning. A demo application can be found at BTCPayWall. There you can unlock a blog post for 100 sats for 60 minutes.
Pay for donations with Lightning.
You can support the work of free content providers with a Lightning donation.
Value 4 Value is the term used to describe payment for free information and content.
Just like giving a street musician or artist a few coins for their performance, you can donate a few sats on websites.
At the bottom of this website you will find a donation option to donate a few sats to Coincharge.
Pay with Lightning in an online store
More and more online stores are accepting Lightning as a payment method in addition to Bitcoin. When selecting the relevant payment methods, Lightning is then selected and payment is made using the Lightning app.
Send a Lightning donation to a YouTuber
The Lightning QR code is displayed in a YouTube video or livestream and viewers can send a few sats by scanning the QR code.
Streaming Money – Lightning payment per duration
Podcast 2.0
In the podcast sector, there is the so-called Podcast 2.0, which allows podcasts to be monetized. The listener pays a few sats per time spent listening to the podcast. The process is called streaming money. A listener can also send small sats for particularly good parts while the podcast is running. The topic of streaming money also offers an interesting field of activity for new business models.
Streaming Money for Videoss
You could also pay for a video only for the time you watch it.
Streaming money for software usage
Or for the use of software. Instead of a one-time or annual software license, the software is only paid for the duration of actual use.
Earn Lightning
However, you can also earn Lightning, which is then paid out to the Lightning Wallet.
Gaming Play to Earn Bitcoin
You can also earn Lightning. For example, if you play a game and achieve certain goals. You can then have the earned Sats paid out to your Lightning Wallet.
Sats Back – reimbursement via Lightning for the use of services, credit cards or loyalty cards.
As part of customer loyalty programs, you receive a reward or a refund when you use a certain service or card. These Lightning refunds are also called Sats back.
Affiliate commissions via Lightning
For referrals or the successful referral of new customers, the agent receives an agent commission. This affiliate commission can be paid out in the form of Lightning. It is possible for the smallest amount and can therefore be granted for each individual commission claim and no longer has to be settled as a total.
Lightning Bot on Telegram
There are corresponding Lightning Bot in some Telegram groups. The members of these groups can express their approval of individual posts with a small donation.
Where can I pay with Lightning?
On the Coinpages website you will find all stores and online stores in German-speaking countries that accept Lightning payments. The cryptocurrencies accepted by the respective store are listed next to each entry. Click on the Lightning symbol next to one of the stores listed and you will receive an overview of all stores that accept Lightning payments.
Find on Coinpages: All German-speaking merchants that accept Lightning.
How can I accept Lightning in my store or online store?
In this article, we have focused on how you can pay with Lightning. In one of the following articles on Lightning, we will explain how you can accept Lightning payments in your business or online store.
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