Pomp Is Ready To Take Bitcoin’s Lightning Network To 250 Kroger Grocery Stores Due To Visa Network Fees
Lightning Network Ready To Take Bitcoin In Over 250 Grocery Stores via Kruger
Kroger Expands Ban On Visa Credit Cards Due To High Fees
Starting April 3rd, the Smith’s Food and Drug Stores division of US Supermarket chain Kroger Co will stop accepting Visa credit cards because of high transaction fees.
In August, last year, Kroger had stopped accepting the credit cards of Visa at its Foods Co stores in California due to a price dispute over network fees and interchange rates.
“At Smith's, Visa's credit card fees are higher than any other credit card brand that we accept. Visa's excessive fees and unfairness cannot continue to go unchecked,” said Kroger's Chief Financial Officer Mike Schlotman.
The company is currently exploring other options to reduce the cost of accepting credit card and keep the prices low for its customers.
“It is unfair and disappointing that Kroger is putting shoppers in the middle of a business dispute,” a Visa spokeswoman said.
“When consumer choice is limited, nobody wins,” she added while further stating that the company has, in fact, put forward a number of solutions in order to allow its cardholders to continue using their credit cards at Smith's Foods and Drug “without Kroger-imposed restrictions.”
Smith’s that operates in about 142 supermarket and 108 fuel center locations across seven states in the US will stop accepting Visa credit cards from April but will continue to accept other major credit cards among all other forms of payment like health savings account cards.
Perfect Opportunity For Bitcoin And Lightning Network
The dispute is the latest between the payment processors and merchants over transaction fees. Credit companies had said that the expenses incurred in increasing the anti-fraud and anti-theft security measures to make the payment processing safer have resulted in a fee hike.
Now, Visa and Mastercard both have another round of fee spike coming that is slated for April. This hike would be levied on merchant banks and not on merchants directly, however, the banks could pass on the fee hike to the sellers if they don't want to absorb it themselves.
This got the attention of the crypto community as Bitcoin proponent and founder and partner at Morgan Creek Digital Capital, Anthony Pompliano is planning to hook Kruger with Lightning Network and given the fact that Kroger Digital’s product manager has already got in touch with Pomp, things are already moving forward.
In January, Bitcoin ATM company, Coinme has allowed bitcoin purchases through Coinstar kiosk in a number of US states and now Bitcoin adoption is going to get another swift kick.