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How Uulala Solves The Payments Problem For 58% of Mexican Workers

Unbanked Construction Worker Mexico City

A majority of workers in Mexico participate in the informal economy, with an estimated 58% of Mexican workers engaged in informal income-earning activities which remain outside financial regulation. In that environment, the process of paying workers and suppliers is complicated and can require a number of different payment methods. In general, payday becomes a cash-heavy endeavor, which in turn requires a significant investment of resources in bookkeeping and accounting to process and track those payments within a business.

Uulala’s unique platform includes a Mass Payout system which simplifies the payment process, allowing businesses to pay all types of workers and suppliers identified within the Uulala application, a system accessible to anyone with a smartphone.

Paying the Unbanked

In the 2014 Global Findex on financial inclusion, the World Bank estimated that 61% of Mexican adults were fully unbanked, largely due to lack of access to banking infrastructure. However, over 65% of the population, some 85 million of Mexico’s population of 130 million, were internet users as of January 2017.

Recent unprecedented access to cheap mobile networks and smartphones has led to a meteoric rise in internet use by traditionally excluded demographics, such as those with low incomes and living in rural areas. This access is paving the way for digital platforms to fill the gaps in financial infrastructure in Latin America. An obvious starting point is offering digital payment of wages to employees with internet access.

Creating In-App Identities

Shyft, a blockchain-based ecosystem that facilitates secure information sharing, has partnered with Uulala to create a unique digital identity for each individual or business that downloads the Uulala application. In conjunction with Uulala’s own secure technology, users are identified within the system, with picture identification.

Each user then becomes a unique entity in terms of transactional capability, which includes the ability to send and receive funds such as payroll, to pay bills and, perhaps most significantly, it allows for the user to begin building credit through day-to-day activities within the application.

Using Uulala’s Payout System

Uulala’s “Mass Payout” system, much like a payroll system, lets businesses easily pay their employees, subcontractors, casual labors, etc. through the app.

Here’s how it works:

  1. The Business uploads a payment file through their administration dashboard, a unique I.D. is created for each worker or supplier.
  2. The system calculates the amount to be disbursed to each payee and total amount to disburse.
  3. The system calculates the difference between available funds in the company account and the amount to be sent.
  4. If there are fewer available funds than needed, suggests moving x amount of funds from a linked company bank account, funds are transferred in.
  5. Pay either individual account or pay all (batch payment). Once payment is sent, balances adjust on the company dashboard with available funds.
  6. Payee receives an app notification they have received a deposit
  7. Payee refreshes their screen has funds available within seconds.
  8. The payee can, pay bills, make purchases through the app, withdraw cash etc.

The mass payout system simplifies the process of both paying out and receiving wages. The batch payment process allows for multiple payees to be paid with one simple transaction by the sender, which saves time and resources for businesses with large numbers of workers and suppliers.

Blockchain Transactional Security and Credit-building

Blockchain-secured transactions make payroll transfers to employees, subcontractors, temporary workers, and short-term associates practical, rapid and incredibly secure. Within the platform, Uulala uses its native utility token, the UULA, to log transactions that are processed through the financial core of the system and logged permanently on a blockchain, attributing them to each users blockchain based credit profile that can be seen in-app.

Within the Uulala application, each individual payee is defined by their Uulala I.D., so external financials, like credit status, are irrelevant. Once the business or individual starts participating in transactions within the Uulala ecosystem, they immediately begin building credit. This can qualify them for microloans from Uulala, allow for increased access to entertainment options, and ultimately lead to a credit score that can be recognized by traditional financial institutions.

Real Money in the Real World

Transactions through Uulala are made with government-issued currency like USD, MXN, and Euros. Digital payments are made and received in regular currency which can be deposited and withdrawn. The platform uses its own cryptocurrency, the UULA token, strictly to log transactions, not as money in itself. In countries like Mexico and the rest of Latin America with large numbers of financially under-served, Uulala provides a practical, tangible alternative to traditional financial institutions, one that is accessible to those transitioning from a cash-only economy.

For more information on using Uulala for Mass Payouts in Mexico please contact Uulala at Contact@uulala.io to schedule a demo.

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Matthew Loughran, EMBA

Matthew Loughran, EMBA

91 Followers

Social Impact Entrepreneur at FounderX.co, Emerging Technology Advocate, Certified UN SDG Impact Measurement Specialist