The Interledger Foundation, a prominent organisation advocating for an open, interoperable payment network, has announced a bold new initiative aimed at empowering fintechs to utilise the Interledger Protocol (ILP) in order to bring instant payment capabilities to underserved populations and emerging markets. With a dedicated fund of $4 million, the Foundation seeks to remove the financial barriers hindering the widespread implementation of easy-to-use instant payments around the world.
In today’s global market, the expansion into underserved populations is not only an ethical and social responsibility but also a strategic move for fintech companies to tap into a new revenue stream. By reaching millions of underbanked individuals, companies have the opportunity to unlock substantial financial potential while fostering a more inclusive financial landscape on a global scale. However, the obstacles to achieving this goal, such as high processing costs, currency conversion fees, and fragmented payment networks, can stand in the way of progress.
The Interledger Foundation’s open source ILP is positioned to overcome these barriers, enabling fintech companies to extend their payment offerings to underserved populations through a seamless and cost-effective network. Briana Marbury, CEO at Interledger Foundation, emphasised the significance of this initiative, stating, “Our mission is to help eliminate the financial roadblocks hindering the accessibility of easy-to-use instant payments for everyone and to contribute to a financially inclusive ecosystem along the way.”
Furthermore, the Foundation is inviting fintech firms interested in broadening their payment platforms with cross-border payment options to participate in this innovative initiative by visiting the Interledger Foundation’s website.
The newest funding initiative will target two types of fintech companies: those that facilitate payment transactions and those that receive payments through their applications. Financial commitments of £250,000 and £150,000, respectively, will be allocated to cover the developmental costs associated with building the necessary technical infrastructure. This collective effort of participants from various digital financial services entities, including digital wallets, mobile money providers, banks, neo-banks, e-commerce retailers, and donation platforms, will contribute to the Interledger Foundation’s mission of promoting financial inclusivity worldwide.
The Interledger Foundation’s ILP, which was co-created by early Bitcoin contributor Stefan Thomas, serves as a crucial building block for fintech innovation that caters to underbanked populations by providing a cost-effective means for payments. Thanks to its open standards and strong collaboration with financial service providers and standard bodies, such as The World Wide Web Consortium, ILP remains a neutral and accessible protocol that allows organisations to transact money in milliseconds and process up to one million transactions per second.
In conclusion, the Interledger Foundation’s significant investment in this groundbreaking initiative is poised to revolutionise the global financial landscape, making instant payments more accessible to underserved populations and driving financial inclusivity on a scale never seen before.