Open standards, including those used in peer-to-peer transactions, cross-border payments, and digital currencies, are revolutionising how societies transact. What’s more, the global push towards faster payments, such as BankservAfrica’s Rapid Payments Programme and its Payshap instant payments initiative, also hold enormous potential to help drive merchant acceptance. This is especially the case in fragile communities that depend on the immediate cash flow, typically only provided via cash sales.
The Interledger Foundation, which aims to foster global digital financial inclusion and equitable access, are stewards of the Interledger Protocol (ILP). This is an open-source protocol, based on open standards, that is currency agnostic. It allows anyone to send value anywhere, exchange currencies of all types, and is designed to make payments faster, easier, and cheaper.
“Interledger has created a global payment network of connecting nodes, where value can flow freely across borders and between different currencies. The Interledger Protocol has been designed to facilitate the transfer of digital assets – from fiat currency to crypto, to digital assets like points, loyalty rewards, or even in-game currencies. Interledger can bridge the gap between proprietary systems, opening up the entire financial ecosystem to a new way of transacting,” Marbury explains.
Big opportunity for software development communities
Open payments are rapidly evolving, allowing software developers to shape the future of finance. The demand for developers with experience in this specialty is growing exponentially. Interledger already works with the University of Cape Town (UCT) to co-design and implement an open payments curriculum and provides real-world opportunities that highlight careers in open technology.
Real world applications that are changing lives
Marbury says that transaction fees disproportionately affect small payments, making up a far greater percentage of the payment than in larger transactions. However, she says Interledger has the potential to shift this and make smaller payments much more viable.
“Imagine the benefits of seamless small payments and multiple transaction options. This would include traditional bank accounts, cryptocurrencies, and mobile wallets – all with lower transaction fees. Real world applications include remittances, cross-border payments, micropayments, and foreign exchange options that allow everyone to pay in their local currency with low conversion fees. The possibilities are limited only by our imagination.” she says.
South Africa presents a compelling springboard for Interledger’s growth and development on the continent. Marbury explains, “By hosting the Interledger Summit in Cape Town, we hope to contribute to a thriving open payments ecosystem. This includes the potential for partnerships with software developers, fintechs and payment providers, government agencies, banks, retailers, and more. We recognise the immense potential of Cape Town as a development hub and see the Interledger Summit uniting local and global minds around the open payments movement and the digital financial systems industry’s future. We look forward to seeing what new creative opportunities present to our growing community.”