Paystack Connects with Mojaloop, an ILP Implementation to Enable Cross-Border Payment Flows
Paystack has connected with Mojaloop that is Ripples’ ILP implementation in order to enable the cross-border payment flows.
Founded in 2015, the Stripe-like startup is a technology company that solves payments problems. In November 2018, it had more than 25,000 businesses in Nigeria using Paystack to collect payments recording a payment collection of over 2.9 million in October 2018 while paying out $27.5 million in the same month.
Just at the end of last month, the Lagos-based startup raised $8 million in a Series A round of funding led by Visa, Tencent, and Stripe. In two years, the company that is active in Nigeria has grown to process 15 percent of all online payments and now planning to grow in more countries, starting with Ghana.
Just recently, Paystack prototyped the use of Mojaloop in order to enable the cross border payments for online merchants
“We pretty much added another payments channel. We made it possible for a user in a different country to pay in their local currency to a business in another country.”
.@paystack prototyped the use of Mojaloop to enable cross border payment flow for online merchants.
"We pretty much added another #payments channel. We made it possible for a user in a different country to pay in their local currency to a business in another country." #MojaCamp pic.twitter.com/z40YOOGpjV
— DFS Lab (@TheDFSLab) April 19, 2019
Mojaloop is an open source software for government regulators, financial services companies and others that faces the challenges of “interoperability” and financial inclusion.
Back in October 2017, the Gates Foundation collaborated with Ripple along with Dwolla, ModusBox, Software Group, and Crosslake Technologies to create a system called Mojaloop that leverages the power of Interledger Protocol (ILP) to help the unbanked.
However, that year during a panel discussion at Money 2020, Kosta Peric, the deputy director for financial services for the poor at the Gates Foundation said, Mojaloop is “not exactly a blockchain,” only “some pieces of that are inspired by blockchain.”
DFS Lab, an early stage accelerator that supports potential entrepreneur and help grow and launch fintech businesses in developing countries conducted a Mojaloop boot camp in the second week of April where selected financial services and technology companies got the opportunity to work with the team behind the Mojaloop platform.
In another video shared by DFS Lab, another Paystack executive shared how Mojaloop is helping them.
“What Mojaloop is helping with is our International Expansion. We know that once we are ready to set up in whatever country it is, as long as we stay connected to Mojaloop we know that we already have multiple Payments options. We don't have to overthink it.”