Africa’s payment systems are experiencing a rapid evolution, fueled by the increasing number of mobile penetration, the growing amount of e-commerce activity in Africa, and financial inclusion initiatives.
However, significant discrepancies remain in accessibility, interoperability, and even cost.
TBD, a decentralized financial platform developed by Block ( formerly Square ), is stepping up to address these challenges with unique solutions that are specifically tailored to the African landscape.
The company recently hosted the TBD hackathon at the Africa Bitcoin Conference in Nairobi. The competition aimed at driving innovation, creativity, and technological advancements in payment solutions across Africa.
The competition saw Nigeria’s Emmanuel Kufre, who built Blink, a decentralized wallet application that processes freelancers’ payments take home the winning prize.
The event, held in collaboration with the Africa Bitcoin Conference, challenged developers to create novel payment solutions leveraging tbDEX, TBD’s open-source money protocol.
Participants in the hackathon tackled crucial challenges, including limited access to banking, high transaction fees, and inefficient cross-border payments. Each team made up of 1-2 developers, used the tbDEX SDK to build their payment applications within a sandbox environment.
According to Angie Jones, Global VP of Developer Relations at Block ‘’…the winning teams are truly representative of the future of financial solutions across Africa’’
‘’ They have all demonstrated a deep understanding of the challenges facing a pan-African payment system, and have developed solutions that have the potential to transform the way people transact.’’
TBD employs decentralized methods to address challenges facing the payment system in Africa directly. The company focuses on open-source protocols that promote interoperability. Its protocol tbDEX, for example, enables the seamless transfer of different currencies and assets, including fiat and cryptocurrencies. This is beneficial in Africa, where international trade is significant, but suffers from inefficient payment systems.
By removing middlemen, TBD’s solutions have also had a significant effect on reducing fees associated with transactions. For example, blockchain technology is used in remittances to facilitate quick and low-cost transfers that address the high costs associated with traditional services.
TBD said its mission to bridge the gaps in the African payment systems aligns with the continent’s need for greater financial inclusion and to become more integrated economically. Through the use of cutting-edge technology, African partnerships, and addressing the entire system, TBD says it is well-positioned to transform the African financial landscape for both individuals and businesses.
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