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Why the Lightning Network Payment is Highly Likely to Succeed in Indonesia
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Yijia SuYijia Su
Joined 2023.10.10
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Why the Lightning Network Payment is Highly Likely to Succeed in Indonesia

Indonesia, with its vast population and diversity, stands on the cusp of a financial revolution. While most developed countries have gravitated towards credit cards or QR payments in super-apps for their daily transactions, Indonesia offers a different narrative, one where the Lightning Network could have chance to success. Here are compelling reasons why the Lightning Network payment system could see widespread adoption in Indonesia:

1. The Burden of Credit Card Processing Fees

In regions like the US, EU, and Japan, credit cards have become an integral part of daily transactions. However, the convenience of credit cards comes at a cost, with networks often charging processing fees ranging from 2% to 3%. For countries with higher average incomes, these fees, though substantial, can be absorbed into the cost of doing business.

But in a low-to-mid income country like Indonesia, such percentages can significantly impact both the merchant's profit margin and the overall price for consumers. An extra 2% to 3% can mean the difference between affordability and inaccessibility for many Indonesians, leading to hesitancy in adopting such platforms.

2. The Absence of a Dominant Super-App

China, another developing nation, sidestepped the high costs of credit card transactions by leveraging its tech giants to create super-apps, such as WeChat and Alipay. These platforms use QR payments to settle a vast majority of domestic transactions. However, in Indonesia, we have not seen a super-app like this that can cater to the entire nation's needs. We got a few payment solutions here like OVO and GoPay, each application has its frequent user and do have a reason to take a share in today's payment market.

The inherent diversity leads to multiple apps catering to different sections of the population. Transacting between these apps is often inconvenient, leading to a fragmented financial ecosystem. There's a clear gap in the market for a unified, low-cost payment solution that serves the entire population.

3. The Advantages of the Lightning Network

Lightning Network—a decentralized system built atop the Bitcoin blockchain that facilitates instant payments with almost zero fees. For a country like Indonesia, here's why it could work well here:

  • Cheap and Fast: Transactions on the Lightning Network are incredibly cheap, often costing just a fraction of a cent. This makes it a financially attractive alternative to both credit card payments and even some mobile wallet systems.

  • For Everyone: One of the most significant advantages of the Lightning Network is its accessibility. Individuals don't need a traditional bank account to utilize the Lightning Network. Given that a substantial portion of Indonesia's population remains unbanked, this feature can bring financial services to millions who previously lacked access.

  • Decentralization: Without the need for intermediaries or centralized entities, the Lightning Network fosters an environment where users have greater control over their funds, enhancing security and trust.

The Catalyst for Lightning Network Adoption: Stream-To-Earn

For the success and widespread adoption of any technology, user-friendly interfaces and practical applications are important. To introduce and familiarize Indonesians with the Lightning Network, a bridge between the complexities of decentralized tech and everyday utility is essential. This is where the Stream-To-Earn app shines.

Decentralized Livestreaming: Stream-To-Earn is not just another live streaming platform—it's a revolutionary product that integrates the power of decentralized technologies like the Lightning Network and Nostr. By harnessing these technologies, the platform offers a seamless, transparent, and efficient streaming experience.

Direct Monetization: Enjoy, and get paid. People love to share their daily life, and naturally, everyone also loves earning money. Why not merge these passions together? In an internet-emergent market like Indonesia, where individuals are often more open to innovative ideas, the concept of Stream-To-Earn comes as a breath of fresh air. We believe it could be a significant factor to accelerate the adaption of Lightning Payments