Mojaloop Unlocks Financial Inclusion Worldwide

Mojaloop is a platform that enables the creation of digital payment systems, connecting millions of people to financial services. It's an open-source software that allows financial institutions to create mobile money services, helping to bridge the financial gap in underserved communities.

Mojaloop was developed by a team of experts at the Bill and Melinda Gates Foundation, with the goal of increasing financial inclusion worldwide. The platform has been implemented in over 20 countries, including Kenya, Nigeria, and Tanzania.

Mojaloop's modular architecture makes it easy to integrate with existing systems, allowing financial institutions to quickly and efficiently create mobile money services. This has helped to increase financial inclusion in many countries.

By providing access to digital payment systems, Mojaloop has helped to reduce poverty and increase economic opportunities for millions of people worldwide.

The global impact of Mojaloop is nothing short of remarkable. A 2023 United Nations analysis found that building digital public infrastructure to provide digital payment, money transfer, and credit services to unbanked individuals could speed up GDP growth in low- and middle-income countries by 20% to 33%.

This means that millions of people could gain access to digital payments, with up to 730 million more people able to use digital payments. That's a huge number, and it's a testament to the potential of Mojaloop to drive economic growth and development.

By providing credit to small businesses, Mojaloop could help 16 to 19 million more entrepreneurs obtain the funding they need to grow their businesses and create jobs. This could have a ripple effect, boosting local economies and improving living standards.

The benefits of Mojaloop extend to direct benefit transfers as well, which could increase by US$17 billion to US$21 billion. That's a significant amount of money, and it could make a huge difference in the lives of people who need it most.

In fact, this could translate to a direct benefit of US$80 to US$100 per household, which is a significant amount of money for people living on less than US$2 a day. It's a reminder that Mojaloop is not just a technical solution, but a powerful tool for creating positive change in people's lives.

Mojaloop is being implemented in various countries around the world, each with its own unique context and requirements.

Rwanda is one of the countries leading the way, with the Rwandan deployment of Mojaloop estimated to be 85% complete and expected to go live before the end of 2024. This will enable the country to own its own national payment switch, making digital payments more accessible to everyone, regardless of economic status.

In Tanzania, a national payment system called the Tanzania Instant Payment System was created using Mojaloop and other open-source software and techniques, making it the first country to adapt Mojaloop for its own needs. This system enables instant payments between sellers and buyers, supporting micro and small merchants doing business along the border between COMESA countries.

Mojaloop is also being used in Mexico and Myanmar to build their own inclusive instant payment systems, and new proof-of-concept implementations have been launched in South Sudan, Kenya, and Burundi. As more countries launch efforts to build their own IIPSs, they will have more best practices and software add-ons to draw on in adapting Mojaloop for their own purposes.

In the Philippines, a startup called Higala is building an IIPS on Mojaloop to reach the millions of Filipinos left out of the digital financial system by current banking institutions. Higala's Mojaloop-backed payment switch is 75% cheaper to operate than the current switch, making digital financial services more affordable to low-income communities.

Implementing Mojaloop requires a solid foundation, and the Mojaloop Foundation is there to provide additional support. They offer training to staff to help them understand and work with the technology.

The Mojaloop software is available on GitHub and Microsoft's software center, making it easily accessible to those who want to implement it. This is a game-changer for widespread adoption of mobile digital payments.

The Mojaloop Foundation software solution is designed to make financial transactions easy and efficient. It offers a range of capabilities that enable users to request and accept money directly from other users.

One of the key capabilities of Mojaloop is the Merchant Request feature, which allows users to request and accept money directly from other users.

Mojaloop also supports multi-country and multi-currency transactions, enabling users to send and receive money across borders at the proper exchange rates.

This feature is particularly useful for individuals and businesses that operate in multiple countries or deal with international clients.

Here are some of the key capabilities of Mojaloop:

Mojaloop is an open-source software solution that enables governments and financial enterprises to launch and maintain an inclusive instant payment system.

The Mojaloop Foundation was created four years ago to support the adoption of this software, and it provides training to staff, consulting on regulatory compliance, and ensures the accessibility of the technology to users.

Implementing Mojaloop requires additional support, which the Mojaloop Foundation supplies.

Mojaloop's software is available through GitHub and Microsoft's software center, serving as a blueprint for mobile digital payments.

The software comprises three elements: a directory to identify account holders, a system to route payments, and a layer for settlement that transfers users' funds between banks.

Orange, a French mobile phone operator, implemented a Mojaloop mobile payment solution that may reach 100 million users in 22 African countries.

Tanzania will implement a Mojaloop solution to connect 35 million adults in 2020.

Eight years after the Mojaloop project launched, innovators around the world are taking advantage of this exciting new technology, with deployments in Rwanda, the Philippines, and elsewhere.

In Mojaloop, the core service responsible for managing transfers between Digital Financial Service Providers (DFSPs) is the central-ledger.

This service is a crucial component of the Mojaloop system, ensuring seamless transactions between different financial institutions.

The central-ledger repository is a key resource for contributors to Mojaloop, providing a foundation for further development and customization.

Here are some of the most important repositories for contributors:

Mojaloop is an open-source software for digital payments, developed by the Bill and Melinda Gates Foundation.

It was created to help people in developing countries access financial services, by making it easier to send and receive money.

Mojaloop is designed to be highly scalable and flexible, allowing it to be used in a wide range of contexts.

The software is built on a modular architecture, making it easier to add new features and functionality.

Mojaloop uses a decentralized approach, allowing multiple financial institutions to connect and share data.

This approach enables faster and more secure transactions, reducing the need for intermediaries.