Bringing humanity back to banking: Airfox planning to launch peer-to-peer lending function

Paving the way for people-focused, democratized digital banking options

Airfox
Airfox
May 10 · 6 min read

To reach the next step of providing options for the un(under)banked, Airfox is planning on expanding its digital banking platform with the addition of a peer-to-peer (P2P) lending feature. As generally described in our white paper, Airfox intends for this new platform to allow lenders to select loans to contribute to, similar to the Kiva lending method. Our work aims to push modern banking to be increasingly inclusive and level the playing field for the millions of people currently left underserved or excluded from traditional banking.

Airfox’s peer-to-peer lending model

Peer-to-peer lending involves loaning money online to individuals or businesses who are not normally considered for loans by traditional banking systems. Airfox believes that those loaning the money are generally not involved in the standard banking system, but instead are interested in helping better the lives of other individuals. The process of P2P lending matches lenders online with borrowers they are compelled to help.

Initial wireframe design for the Airfox peer-to-peer lending page

Airfox has created initial drafts of wireframes (shown above) of the page that lenders will access. Prospective lenders will be shown various borrowers on a home page, under the title “Lend.” Airfox anticipates that lenders will be shown the stories of the individuals or small businesses who are requesting a loan.

A closer look at example UI showing the posted loans from the lenders’ view

In the planned P2P platform, lenders will be able to see the amount that has already been contributed to the various borrowers on the bottom of the loan’s description. Lenders may also be given information on the borrower(s) geographic location. Conceivably, multiple lenders may extend credit to each borrower, increasing the sense of community and support that defines P2P lending.

The expected role of AirToken as a bridge between currencies

At some point in the future Airfox envisions AirTokens serving as a bridge between currencies, which may help facilitate access to credit by the un(der)banked. When lenders decide to contribute to a loan, they will select the percentage of the remaining amount of the loan that they want to contribute. Once enough lenders agree to fund the loan, Airfox intends that the borrower may be able to access these funds in their native currency through the Airfox Wallet application.

Example of a lender’s currency contribution converted into AirTokens

The preliminary wireframe below demonstrates the current plan to represent loans in the lender’s account after funds are distributed to the borrower. We currently anticipate that loans will be shown in their AirToken value.

Example of lender’s money represented in AirTokens

As currently envisioned, lenders who hold AirTokens and choose to contribute to the loan with their AirTokens will not be charged a transaction fee. Lenders who instead choose to use another payment method will be charged a fee to have the transaction processed through an online payment processor.

Example wireframe of a loan contribution, plus the charge to convert to AirTokens

Confirming the legitimacy of peer-to-peer borrowers

While the goal of peer-to-peer lending is to use technology to connect lenders to borrowers around the world, we acknowledge there are individuals who may misuse this new Airfox feature. To better confirm the legitimacy of borrowers, Airfox plans to provide an additional option for sponsors to back a borrower’s loan.

Loan sponsors would be friends and family members of the borrower who can attest to the borrower’s character. Becoming a sponsor for a loan is expected to require a contribution of 3–5% of the loan amount. If a borrower gets five or more sponsors, Airfox currently anticipates refunding approximately $10 USD of the down payment to the borrower’s account. Borrowers with sponsors likely will be afforded better placement of their loan over other loan requests in the Airfox app.

Example wireframe showing a borrower with sponsors

Borrowers can also make down payments on their loan which Airfox believes should help assure lenders that borrowers intend to pay back the loan.

Peer-to-peer loan repayment

Airfox expects to allow lenders to view money repaid to their account with each monthly installment, instead of all loaned money being returned when the borrower pays the loan back completely.

Example of a borrower repayment plan the lenders will be able to view

Airfox anticipates that lenders will not initially receive any interest the borrower may pay. Instead, Airfox plans at some point in the future to collect a percentage of the interest payments generated by our platform as a “platform fee” and distribute 20% of this “platform fee” to AirToken holders, as subject clearer regulatory guidance.

Launching the Airfox peer-to-peer lending platform

Airfox remains focused on its ultimate goal of creating an inclusive new mobile banking system that benefits all, especially those living in poverty and without access to traditional financial institutions. Developing these wireframes is a foundation step before the features can be developed by an engineering team. Next, Airfox expects to connect this P2P system to our database and the blockchain.

Due to the rapidly evolving regulatory climate regarding cryptocurrencies that are securities, we cannot estimate when, if ever, AirTokens will be listed on any securities or cryptocurrency exchange, or other established public trading market within the U.S. We also cannot promise that if listed, an active and liquid trading market for AirTokens will ever develop or be sustained. Currently there are no registered or approved third-party exchanges or other platforms to support the trading of AirTokens on the secondary market within the U.S.

While material regulatory challenges remain, the team is focused on launching impactful features that enhance our digital financial service offerings. Our users in emerging markets are the core of our work, and Airfox is proud to continue building the solution that will bring financial inclusion to all.

For any questions about the peer-to-peer lending function or Airfox in general, please join us on Telegram.

For more information about AirTokens, please see our Form 10, which contains important material information about AirTokens, including important risk factors associated with owning AirTokens.

A note on wireframes depicted in this article: Wireframes are models that display different elements of a page, helping designers plan a site’s functionality. The wireframes shown in this piece are examples of what the peer-to-peer lending system may look like based on our team’s work up to this point and the images and functionality of our website may change in the future.

A note about AirToken: AirToken holders currently have no rights to receive any dividends or distributions of any kind (including those described above) from Airfox with respect to their AirTokens. Any potential future right to receive such a distribution will be in Airfox’s sole discretion. Nothing in the existing smart contract governing the AirTokens or the Amended and Restated AirToken Terms and Conditions currently convey any right to receive any distributions, and Airfox is providing no assurance that any Airtoken holder will ever receive any distribution from Airfox with respect to the AirTokens.

The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by the use of the words “may,” “will,” “should,” “plans,” “explores,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated.These risks and uncertainties include, but are not limited to: volatility in the crypto currency markets, the impact on our financial condition of our settlement with the SEC, changes in consumer demand for, and acceptance of, our products and services, changes in consumer trust for blockchain technology, the commercial feasibility and success of our planned products, developments and changes in laws and regulations, such as other facts as discussed in the section entitled “Risk Factors” in item 1.A. of our Form 10 Registration Statement; other risks to which our Company is subject; other factors beyond the Company’s control.

Airfox

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Airfox

Accelerate financial inclusion in emerging markets using technology built with trust and inclusion. www.airfox.com

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