The Bitcoin payment startup Zap, which announced its partnership with Visa in early July, very quietly organized a seed funding round in April 2020 and raised $3.5 million.
A report published by Forbes on July 15, stated that the seed funding round of Zap was lead by Greaan Oaks Capital and the other participants were Morgan Creek and the supporter of Bitcoin Anthony Pompliano.
Before organizing the funding round for the company, its founder Jack Mallers’ family restarted Zap.
There are many Bitcoin Payments Startups in the market, but Zap is a bit different from others because it uses the Lightning Network for processing the transaction.
Unlike the other networks, which take around 10 minutes block confirmation time to complete the transaction, Lightning Network takes just a few seconds to do so.
The Lightning network also resolves the issue of transaction fees at the time of network congestion. It basically, reduces the transaction fees during that time and process the transaction.
While describing Zap’s client base, the founder of the company stated, “One of the early use cases for us is content creators. Journalists or video game streamers or adult film actors and actresses, put up profiles backed by our infrastructure, and anyone in the world can tip them”.
He further said that most of its users in recent time do not know that while they use dollars, the Zap uses Bitcoin.
Additionally, Mallers has said that the company would be using the new fund to escalate their business. He also mentioned that he is a tech and Bitcoin market expert but he does not know how the business could be escalated.
Mallers is going to take some help from his investors so that he could scale his business.
In June 2020, Zap joined the Fast Track Program of Visa, which amazed everyone in the market. Visa, while promoting the Visa-labeled card of Zap, stated that in just a year the company would launch the card.
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