Where should wallets explain the differences between on-chain Bitcoin and Lightning?

Payment type should be treated as an inherent property of each transaction, determined automatically from the detected invoice or address. Users should not have to make a preliminary choice regarding payment method before initiating a transaction. Instead, after detection, the confirmation screen should clearly display whether the payment is categorized as “Lightning” or “on-chain,” alongside the associated fees and expectations for settlement speed.

When creating backups, clear guidance must be given regarding recovery limitations. A standard seed phrase enables restoration of on-chain funds, but recovery of Lightning balances may depend on the wallet’s implementation of channel-backup mechanisms and any related services. This distinction should not only appear during initial backup creation, but also be reiterated in all subsequent recovery documentation and instructions, ensuring users are consistently aware of the differences in fund restoration between on-chain and Lightning payments.