Mojaloop, a decentralised and open-source payments platform that aims to simplify and reduce the cost of developing inclusive payment platforms has been launched by the Gates Foundation in partnership with Ripple among others to promote financial inclusion in Africa
Mojaloop will also enable an individual’s digital wallet to connect with her employer’s bank account and her children’s school account to complete monthly transactions.
According to Kosta Peric, Deputy Director, Financial Services for the Poor, at the Gates Foundation, “Just as the internet revolutionized digital communication, open-source solutions like Mojaloop can spark innovation and democratize access to digital payments, empowering billions of new customers and driving massive economic growth in developing markets.”
Mojaloop was created in partnership with fintech developers Ripple, Dwolla, ModusBox, Crosslake Technologies and Software Group, using cutting-edge technology such as the Interledger Protocol, a solution for settling funds among multiple providers across their individual systems.
Developers can access the new software on GitHub to build interoperable systems which connects bank accounts to mobile money wallets and merchants in an open loop directory service layer which easily identifies accounts on each side of a transaction to make payments instant and irrevocable; hence cutting fraud.
Mojaloop is working with Ericsson, Huawei, Telepin, and Mahindra Comviva mobile money systems to develop an Open API for mobile money interoperability. These APIs will allow mobile money providers to integrate seamlessly with Mojaloop and products built from it. Mojaloop project will work with banks, digital financial service providers, governmental offices, NGOs, regulators, technology companies and other entities in emerging economies where financial inclusion efforts can most benefit underserved communities.
“In order to achieve the full potential of mobile money, we must evolve today’s complex and often fragmented digital payments ecosystem,” said Mr. Shi Yaohong, President of Software Product Line at Huawei. “I look forward to exploring opportunities to leverage Mojaloop to help us achieve our goal of bringing digital financial services to all poor and low-income customers.”