MAY 7 (UPI) — Google, together with organizations such as the Bill and Melinda Gates Foundation, set up the Mojaloop Foundation on Wednesday to develop open source real-time digital payment services for developing countries to help more people out of poverty by making savings easier and small businesses more efficient,media reported.
The Mojaloop Foundation’s founding members also include the Rockefeller Foundation, the charity and investment group Omidyar Network, and financial technology start-ups Coil and ModusBox. This effort will help to link the growing number of digital financial services.
Mojaloop-based national payment systems may benefit more than other payment systems that require high transaction costs and lack of compatibility, as they will connect different banks and payment systems. This may allow digital wallets, traditional bank accounts or money transfer services to interact seamlessly, helping to increase the value of existing payment services rather than competing with them.
In addition to personal impact, expanding digital payments could also boost the global economy.
Mojaloop is modelled on digital fast payment systems such as Faster Payments Service in the UK and New Payments Platform in Australia. However, the construction of these systems often involves significant up-front technology development costs and negotiations between various participants. Mojaloop aims to reduce this barrier by providing a standard digital payment blueprint.
Roger Voorhies, president of global growth at the Gates Foundation, said the current outbreak showed that expanding the capacity to pay for infrastructure quickly was crucial. The outbreak is disrupting international relief and traditional remittance payment services, but digital payments can quickly send money directly to those in need. (Small)