How It Works | lil bit

Partner Overview · Confidential

Bitcoin payments,
dead simple.
USD in your bank.

lil bit is a Bitcoin payment layer for everyday merchants. Customers pay in crypto. You receive dollars. No wallets, no volatility, no chargebacks — ever.

Chargeback risk

~1%

Settlement fee

$500

Auto-split threshold

USD

Merchant settlement

See how it works

The System

Three layers. One clean payment.

From the moment a customer taps "Pay with Bitcoin" to the moment USD hits your bank, three layers work together invisibly.

🛒

Layer 1 · Frontend

Bundle Cart

Customer selects multiple offers. lil bit bundles them into one total.

→

₿

Layer 1 · Frontend

Bitcoin Checkout

QR code + live BTC amount. 15-min rate lock. One tap to pay.

→

⚡

Layer 2 · Split Logic

Auto-Split Engine

Totals over $500 are automatically divided into sub-$500 invoices.

→

📋

Layer 2 · Split Logic

Invoice Queue

Each chunk tracked independently. Status updates in real time.

→

🏦

Layer 3 · Settlement

BitPay API

Receives Bitcoin. Converts to USD. Deposits to merchant bank.

→

💵

Layer 3 · Settlement

USD Payout

Merchant receives dollars. No Bitcoin ever touched. No volatility.

Architecture

Built in three distinct layers.

Each layer has a single job and a clean interface to the next. Partners can integrate at any layer.

LAYER 01 · FRONTEND

The checkout experience

Everything the customer sees and touches. Built to be embedded directly into any existing website — a single button, a full checkout modal, or a bundle cart UI.

Embeds into any site with one script tag
Bundle cart groups multiple items into one total
Live BTC/USD conversion with 15-minute rate lock
QR code + wallet address copy for easy payment
Mobile-first, works on any device
Real-time payment status with countdown timer

LAYER 02 · SPLIT ENGINE

The smart transaction logic

The brains of lil bit. Automatically splits large payments into sub-$500 chunks for settlement compliance, tracks each invoice independently, and coordinates the payment sequence for the customer.

Auto-detects totals above $500 threshold
Splits into equal sub-$500 invoices automatically
Presents chunk tabs to customer — pay in order
Live BTC price feed (Coinbase / CoinGecko API)
Invoice queue tracks each chunk's blockchain status
Webhook listener confirms each payment on-chain

LAYER 03 · SETTLEMENT

Dollars in your bank

lil bit connects to BitPay (or Coinbase Commerce / BTCPay Server) via API. The gateway receives Bitcoin, converts it to USD at the locked rate, and deposits directly to the merchant's bank account — usually within 1 business day.

BitPay API creates invoices and manages BTC addresses
Blockchain webhook confirms payment in ~10 min
Auto-conversion to USD at confirmed rate
Direct bank deposit — no crypto account needed
Merchant never holds or touches Bitcoin
~1% gateway fee vs 2–4% for credit cards

⚡ Auto-split engine — how it works

The $500 threshold triggers automatic invoice splitting. Here's the logic in action:

✓ Under $500 — single invoice

$238.00

Helicopter $84 + Dolphin Cruise $45 + Parasailing $89 + Crab Island $20

Invoice 1 · $238.00

One QR code. One payment. Done.

⚡ Over $500 — auto-split

$842.00

Full adventure package — 6 activities bundled together

Invoice 1 · $281.00 Invoice 2 · $281.00 Invoice 3 · $280.00

Customer pays 3 sequential invoices. Each under $500. Merchant gets one USD deposit.

// Split engine logic — runs server-side
function splitIntoChunks(total, max = 500) {
  if (total <= max) return [total];
  const n = Math.ceil(total / max);
  const chunk = (total / n).toFixed(2);
  return Array(n).fill(chunk); // equal splits
}

Transaction Lifecycle

From tap to bank deposit.

Every Bitcoin payment follows this exact sequence — fully automated, no manual steps for the merchant.

🛒

Step 1 · Frontend

Customer builds their bundle

On your website, the customer selects one or more products or experiences. lil bit's bundle cart calculates a single USD total across all items.

₿

Step 2 · Frontend

Customer taps "Pay with Bitcoin"

The checkout modal opens. lil bit fetches the live BTC/USD price and locks the rate for 15 minutes. The customer sees a QR code and exact BTC amount to send.

GET https://api.coinbase.com/v2/prices/BTC-USD/spot
→ { amount: "98,500.00", currency: "USD" }

⚡

Step 3 · Split Engine

Total checked against $500 threshold

If the total is under $500, one invoice is created. If over $500, the split engine divides it into equal sub-$500 invoices. The customer sees chunked payment tabs — they pay each one in sequence.

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Step 4 · Split Engine

Invoices created via BitPay API

Each chunk triggers a separate API call to BitPay, which returns a unique Bitcoin address and exact BTC amount. These are queued and presented to the customer one at a time.

POST https://bitpay.com/invoices
{ price: 281.00, currency: "USD", redirectURL: "..." }
→ { id: "inv_abc123", paymentUrl: "bitcoin:bc1q..." }

🔗

Step 5 · Blockchain

Customer sends Bitcoin

The customer scans the QR code with any Bitcoin wallet and sends the exact amount. The transaction broadcasts to the Bitcoin network. lil bit monitors for confirmation in real time via webhook.

POST /webhook/bitpay-confirmation
{ event: "invoice_confirmed", invoiceId: "inv_abc123",
status: "confirmed", btcPaid: 0.00285 }

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Step 6 · Settlement

USD deposited to merchant bank

Once confirmed on-chain (~10 minutes), BitPay converts the Bitcoin to USD at the locked rate and deposits it directly to the merchant's bank account — typically within 1 business day. The merchant never sees, touches, or holds any Bitcoin.

Gateway options — pick one

BitPay — Recommended · ~1% fee · easiest setup

Coinbase Commerce · Free · crypto-native

BTCPay Server · Free · self-hosted · full control

OpenNode · Low fees · Lightning support

Why It Matters

Who wins, and how.

lil bit creates a genuine win-win. Customers get a better, safer way to pay. Merchants get faster settlement and lower fees.

👤

For Customers

Why they prefer paying with Bitcoin

✓

No credit card exposure. Payment data is never shared with the merchant. Zero risk of card theft or data breach.
✓

Identity stays private. Bitcoin payments require no name, address, or personal info to process.
✓

Store of value + spending asset. Customers can spend Bitcoin without converting to cash first — or hold it as an appreciating asset.
✓

Global access. Works anywhere in the world with no currency conversion hassle or international fees.
✓

Irreversible by design. Once sent, a payment can't be clawed back. Customers own their transaction history.
✓

No bank account required. Bitcoin is accessible to anyone with a smartphone — unbanked or banked.

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For Merchants

Why lil bit makes business sense

✓

Instant, final settlement. Bitcoin payments are irreversible. No disputes, no holds, no waiting 30 days.
✓

No chargebacks. Ever. Blockchain transactions cannot be reversed. Friendly fraud is eliminated entirely.
✓

~1% vs 2–4% processing fees. On $100,000 in monthly revenue, that's up to $3,000 saved — every month.
✓

USD in your bank. You never hold Bitcoin or deal with volatility. BitPay converts and deposits automatically.
✓

No merchant account needed. Get started with just a bank account and a BitPay registration — no lengthy approval process.
✓

New customer segment. ~300 million global Bitcoin holders actively look for places to spend. lil bit puts you on their map.

Launching Spring 2027

Ready to accept Bitcoin?

lil bit handles the complexity. You handle your business.