Definition:
Strike is a Bitcoin Lightning Network-based payment application founded by Jack Mallers and operated by Zap Solutions Inc., designed to enable instant, nearly fee-free global money transfers using Bitcoin’s Lightning Network as a settlement layer — where users can send dollars (or other currencies) to recipients who receive their local currency, with Bitcoin serving as the underlying transport layer rather than a held asset — making Strike one of the most prominent real-world implementations of Bitcoin as a global payment rail, central to El Salvador’s formal Bitcoin adoption and widely used for international remittances, particularly from the U.S. to Latin America. Strike does not require users to hold Bitcoin; it abstracts the Lightning layer behind a familiar payments interface.
Background and Founding
Jack Mallers:
Jack Mallers founded Zap (later rebranded Strike) after working on earlier Lightning Network wallet software. He became a prominent Bitcoin advocate known for emotional presentations at Bitcoin conferences, particularly around the El Salvador announcement at Bitcoin 2021 (Miami), where President Nayib Bukele’s adoption of Bitcoin as legal tender was revealed through a pre-recorded video Mallers coordinated.
Strike’s founding thesis:
Traditional remittance services (Western Union, MoneyGram) charge 5–10% fees. SWIFT international transfers are slow (2–5 business days) and expensive. The Lightning Network enables dollar transfers that arrive in seconds at near-zero cost; Strike built a consumer product on top of this infrastructure.
How Strike Works
For senders:
- User deposits USD (via debit card or bank account) into Strike
- Chooses recipient (via Strike username, phone number, or Lightning invoice)
- Sends; Strike converts USD to Bitcoin under the hood, routes through Lightning, converts back
- Transaction settles in seconds
For recipients:
- Can receive in local currency (Strike converts at point of receipt)
- Or receive in Bitcoin/sats if they prefer to hold
- In El Salvador: could receive in Salvadoran banking system or via Chivo wallet
No Bitcoin holding required:
Strike users do not need to understand Bitcoin. The Bitcoin layer is invisible — Strike appears as a fast, cheap digital payment app. This was a deliberate product design choice to maximize accessibility.
Remittances Use Case
El Salvador remittance context:
El Salvador receives approximately $7B per year in remittances (roughly 24% of GDP), primarily from Salvadorans living in the U.S. Traditional remittance costs: 5–7% of transfer value.
Strike’s Lightning-based transfers: near $0 in fees for Bitcoin-settled transactions (small network fees only).
Pilot program (2021):
Strike partnered with El Salvador before the Bitcoin Law was passed, enabling USD-to-USD transfers via Lightning. Early results showed significant savings compared to traditional remittance services.
Latin America expansion:
Strike expanded to Argentina, Brazil, and other Latin American markets where USD savings are popular due to local currency volatility (particularly Argentina, where citizens sought dollar-denominated savings to avoid peso inflation).
El Salvador Partnership
El Zonte (“Bitcoin Beach”):
Strike’s roots were intertwined with the grassroots Bitcoin Beach project in El Zonte, El Salvador — a community circular economy running on Lightning. Jack Mallers arrived to help digitize this economy and later coordinated the national adoption announcement.
Chivo Wallet:
The Salvadoran government’s official Chivo Bitcoin wallet used Strike’s infrastructure in its early implementation. Chivo received significant criticism for technical failures at launch; Strike’s backend provided the Lightning connectivity.
Legacy:
El Salvador’s Bitcoin adoption remains one of the most significant national-level Bitcoin payments experiments in history, and Strike’s role as technical infrastructure was central to it.
Corporate and B2B Products
Strike expanded beyond consumer remittances:
Strike for Businesses:
- Point-of-sale integration for merchants to accept Lightning payments
- Automatic conversion to fiat currency (merchants don’t need to hold Bitcoin)
Bitcoin Treasury / DCA:
Strike offers Bitcoin purchasing and Dollar-Cost Averaging (DCA) tools for corporate Bitcoin treasury management. Competes with River Financial and Swan Bitcoin in this segment.
The Beer Standard:
Strike ran campaigns demonstrating Lightning payment use at professional sports stadiums and events in the U.S. to normalize Bitcoin payments for retail.
Competitive Landscape
| Product | Category | Bitcoin Lightning | Fiat Exchange |
|---|---|---|---|
| Strike | Lightning payments + remittance | Yes (core) | Yes |
| Cash App | Consumer payments | Basic | Yes (Weiss/BTC) |
| Muun Wallet | Self-custody Lightning | Yes | No |
| River Financial | Bitcoin brokerage/Lightning | Yes | Yes |
| Bitso | LatAm crypto exchange | No | Yes |
| Remitly | Fiat remittance | No | Yes |
Related Terms
Sources
- Strike App — Official — Product documentation, use cases, and company information.
- Jack Mallers on El Salvador — Mallers’ original Medium post announcing El Salvador launch.
- IMF — El Salvador Bitcoin Report — IMF analysis of El Salvador’s Bitcoin legal tender experience.
- Human Rights Foundation — Strike Grants — HRF documentation on Strike-related Bitcoin payments advocacy.
- The Block — Strike Coverage — Research and news coverage on Strike’s expansion.
Last updated: 2026-04