Lightning Network Set to Transform Global Payments
At FinTech LIVE Singapore 2025, Sagun Garg delivered a keynote that focused on the Lightning Network and its potential to reshape global payments.
Lightning Network versus traditional card schemes
Garg explained that the Lightning Network sits on top of Bitcoin, turning a blockchain once limited to roughly seven transactions per second into a platform capable of rapid, low‑cost transfers. The protocol can handle many more transactions than the base chain, allowing merchants to consider it as an alternative to Visa or Mastercard.
According to the presentation, the lower fees and near‑instant settlement could reduce costs for small retailers that currently pay a percentage of each sale to card issuers. The speed also makes peer‑to‑peer payments possible without waiting for confirmations on the main Bitcoin network.
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Impact on underbanked regions
Garg highlighted that the Lightning Network may be especially useful where banking services are scarce. He cited examples from Africa where companies enable payments through mobile phones, even without an internet connection. “With mobile phone numbers being the user names or just like an email address, your phone number is used as an address to send money between any two people,” he said, describing a system that works via SMS.
In such markets, the ability to move value without relying on local banks could help people avoid high inflation and currency devaluation. Its borderless nature also means that remittances can be sent quickly and cheaply, a notable advantage over traditional cross‑border services.
The technology also opens up new business models. Garg outlined a scenario where streaming platforms charge users for every second of video watched, a form of micropayment that would be impractical with conventional payment rails. Similar concepts could apply to gaming, online services, or automated AI transactions that negotiate fees in real time.
While the promise is clear, the path to widespread use will differ by region. In countries with mature payment infrastructure, merchants may see little reason to switch. In contrast, places lacking reliable banking may adopt Lightning more quickly, driven by the need for affordable, instant transfers.
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From a practical standpoint, this shift could mean that a shop owner in a remote village might accept a QR code linked to a Lightning invoice instead of a card reader, simplifying the checkout process. For everyday users, the experience could become as familiar as tapping a phone, but without the fees tied to card networks.
Challenges and timeline for adoption
When asked about the timeline for mainstream adoption, Garg gave a measured answer. He noted that adoption will likely be uneven, with some markets moving faster than others. He also mentioned that the Lightning Network’s reliance on Bitcoin means that any volatility in the underlying asset could affect user confidence. Nevertheless, the design allows for off‑chain settlement, which can mitigate some of the price‑risk concerns for merchants.
Overall, the presentation suggested that the Lightning Network is positioned to become a disruptive force in payments, particularly where traditional systems are either too expensive or simply unavailable.
