LitePay Is Launching Today, But What Does That Actually Mean?
The payment processor's launch is more complicated than expected.
LitePay, a Litecoin payment processor is slated to launch Monday night at 9 p.m. Pacific time. But it’s already gotten a little complicated for the new service.
On the day of its release, LitePay sent an email to its mailing list subscribers saying that it will delay its card registration process indefinitely because of “hostile actions by card issuers towards crypto companies.”
It’s unclear whether there was ever an intention of opening consumer card registration on this date, so Litepay might still be on schedule. Registrations for merchants to accept the service start at 9 p.m. Pacific regardless, which may be all that was ever planned for Monday’s launch. However the lack of clarity regarding consumer registration has rubbed some Litecoin enthusiasts on the altcoin’s subreddit the wrong way.
“The emails says that the card aspect of the project has been completely put on hold with no reference to when (if ever) it will be rolled out,” wrote Redditor, litecoinfanboi. “They have left us completely in the dark (not to mention the months of virtually no communication on the run-up to today). They have had months to work on this product, why tweet reply a month ago (i know, pathetic) that they are on schedule for 26/2 then on launch today announce that everything is on hold. Will this project eventually come to life? probably. Have the company handled their business well thus far? no.”
LitePay’s website says users will be able to register for a special debit card that they could transfer Litecoin funds into and use at select locations, much like Bitpay does for bitcoin. This is a pivotal feature of the payment system that has the possibility to turn the cryptocurrency into less of an online asset and more of spendable tender.
In the same email, the company stated that it “will continue to monitor the situation with regards to card services and will open registration as soon as a reliable product can be supported.”
Beyond the email, there’s been no word from LitePay as to what exactly is going on. The company has maintained a scant social media presence with only two announcements being made on its Twitter page.
Inverse reached out to LitePay for comment but has yet to receive a reply.
Earlier in February, a group of United States and United Kingdom-based banks announced they were banning cryptocurrency purchases on their credit cards. Visa and MasterCard also announced that they would begin charging higher transaction fees for digital currency purchases.
There is currently no evidence suggesting that any banking or card issuing organizations are involved in litigation with LitePay.
The payment system might still be able to bring Litecoin into the mainstream, but it might be a bit of a slower processes than initially anticipated.
If you liked this article, check out this video about Litecoin’s creator, a meme-loving Internet Dad.
