The Gates Foundation has released new open-source software for people across the globe that do not have access to banks, which utilizes the distributed ledger created by startup Ripple [XRP].
Announced today, Mojaloop is aimed at implementing an interoperability layer between financial institutions, payment providers and other firms that offer such services to the poor and unbanked. Ripple's Interledger protocol, which is used to transact among various financial networks, is being used to help accomplish that goal.
In addition to Ripple, three other financial technology firms participated in the development of the software. The app came out of the group's Level One Project, an umbrella initiative for its work with the unbanked poor that has seen it explore technologies like blockchain.
The Gates Foundation has been weighing applications of the tech since as early as 2015, including its use as a way to bridge disconnected financial systems.
"Interoperability of digital payments has been the toughest hurdle for the financial services industry to overcome. With Mojaloop, our technology partners have finally achieved a solution that can apply to any service, and we encourage banks and the payments industry to explore and test this tool,” Kosta Peric, the foundation's deputy director of Financial Services for the poor, said in a statement.
In addition to the direct work on Mojaloop, the project also saw four other mobile phone technology providers – Ericsson, Huawei, Mahindra Comviva and Telepin – develop a open API to speed up the pace of integrations.
Mojaloop was created by the Gates Foundation’s Level One Project, which is aimed at leveling the economic playing field by crowding in expertise and resources to build inclusive payment models to benefit the world’s poor. Alongside Mojaloop’s development, the project also brought together four mobile systems companies—Ericsson, Huawei, Telepin, and Mahindra Comviva—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.
“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.”
You can read the official announcement here