Mojaloop: The Future of Financial Interoperability

Jan 15 · 6 min read

Global Poverty

According to the 2017 report, over 1.7 billion people in the world remain unbanked. This means they are not registered with any financial institution.

Despite its technical advancement, China occupies the first place as the country with the highest level of unbanked adults. In India, Indonesia, and Pakistan, a lot of people have still not registered with financial institutions. However, there is also Africa, the continent that experiences the highest level of poverty in the world.

As we can see from the map, the majority of the unbanked live in Africa.

The World-Changers

The Bill & Melinda Gates Foundation

One of the projects in the Global Growth & Opportunity area is Mojaloop project, which provides financial services for the poor to allow the security and the ability to thrive.

Why just not give money for charity to institutions located in poor countries? This is exactly why the Gates Foundation needs Ripple. Giving money to charity means trusting a bank/ medical institution/educational institution/ =government intermediary, which is risky due to the high level of corruption in developing countries. So, how does Ripple manage the risk of money being stolen?


Ripple provides all of the previously mentioned features with the “internet of value,” which consists of two functional groups: network users (SMEs, corporates, small banks, payment providers) and network members (banks and payment providers). Network users can only send transactions; network members process transactions and help improve liquidity on the platform.

RippleNet enables global money transfers and offers its users cost efficiency, real-time transactions, and security.

The Ripple Protocol Consensus Algorithm

The technology with which RPCA provides security is called PGP signatures. If in an ordinary payment system people must trust third parties, with PGP signatures, if Alice trusts Bob, Bob trusts Carol; then Alice can trust Carol. By sending transactions to each other, users are basically building a non-third-party trusted system.

In its attempts to help the world of finance become safer and more efficient, Ripple has begun cooperating with the Gates Foundation to ensure secure payments and to provide the poor in developing countries with this opportunity. Together, they’ve created Mojaloop: open-source software that provides interoperability to take on the challenges of the unbanked all over the world.


If John, who lives in the USA, can easily send money to his parents in France, Lulu from Kenya can send money to her parents in Ethiopia only by bringing cash personally. Distance prevents her from doing this, as the addressee lives too far away.

Moreover, if the school at which Lulu’s daughter studies has a mobile banking account, she still will not be able to pay the bills.

Mojaloop solves all issues of interoperability in poor regions with innovation connecting all payment providers and banks on one platform. With it, Lulu is able to send money to her parents in Ethiopia, pay her electric bill, or buy groceries with her mobile phone.

How Is It Possible?

However, the need for cheap transactions is only covered if the transaction is completed within one provider. This makes cross-provider payments impossible or expensive to handle, and leads to closed financial circles: Alice, Bob, and Carol can exchange money only within their group.

Mojaloop makes costless digital payments possible, no matter which provider or bank a person uses. This is a platform that connects all payment opportunities within one ecosystem.

The Gates Foundation team has created open-source software that makes it easy to connect mobile money providers and banks, and anyone can use it. Mojaloop enhances more than just interoperability; it has become the first in the history the “internet of payments”. With this platform, money is transferred as easily as the information in instant-messaging chats is transferred now.

Ripple’s developers have demonstrated exactly how mobile banking for crypto will work. The only necessary step is to send a message to an XRP address with the text “Send 5 EUR to +31698368590.” 5 EUR, for example, could be money to pay for groceries, and +31698368590 is the number of the merchant’s wallet.

Ripple converts money to fiat currency quite quickly in comparison with other exchanges, and the transactions themselves are processed faster with xRapid. There is no need to wait until the majority of users have verified a transaction, as this is done on the blockchain.

Let’s keep in mind that the Bill & Melinda Gates Foundation is a charitable institution that isn’t chasing any financial profit from what they do. So, if the foundation or anyone else decides to give money for charity, they will be able to send money directly to Lulu from Kenya or her parents in Ethiopia as simply as they would send an SMS.

“The project, definitely, has a great future and implementation; however, it will take time until the reported 1.7 billion of unbanked individuals get their wallets and join the “internet of payments,” says the Head of the Consulting Department at Applicature, Stan Sheliakin.



By eliminating third parties, charitable organizations won’t have any concerns about losing money to fraudulent actions, and, the poor won’t have to worry about fees on inter-provider transactions. Mojaloop is uniting banks and mobile banking providers.

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Blockchain development agency focusing on production ready solutions, smart contracts technologies, cryptocurrencies and technical ICO support


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Blockchain development agency focusing on production ready solutions, smart contracts technologies, cryptocurrencies and technical ICO support.


Blockchain development agency focusing on production ready solutions, smart contracts technologies, cryptocurrencies and technical ICO support