Tuesday, March 26, 2019

African Startup Wala Leveraging Ethereum For Zero Fee Payments

Wala, an Africa-based payment startup, has started making waves due to the fee-free nature of their microtransactions, purchases, and payments done under its platform. The purpose of this app is clear: show that cryptocurrencies can be used to make payments that would otherwise be impossible to make because the fees would be higher than the payment itself, according to an article published by Coindesk.

Wala advertises itself as a platform to guide you to economic freedom. And it offers its zero fee payment app as an answer to help you with that. The South African startup believes that this is the future of payment services, and the nature and quantity of the micropayments done through its platform seems to confirm this: most of the transactions made through its platform are for amounts less than one dollar, to top up mobile data and airtimes to the most popular carriers in the African continent.

To achieve this, they are using a second layer protocol on top of the ethereum network that makes this kind of free and instant transactions possible, directly connecting clients, the app and the mobile service providers. Then these transactions are batched and sent through the common ethereum network.

Wala also provides services to pay schools expenses and bill through its platform. And rewards you with their own cryptocurrency for using its service. They have a pretty logical plan to their business model: they buy airtime and data to the carriers in bulk, and then they resell it to the users in smaller parts to make a profit for them. And it is logical because their most common case of use comes of topping up data by users.

They have also announced that they are pursuing partnerships with local and international banks to offer loans to farmers using the same app. It is this kind of applications that serve to introduce users to the real power of cryptocurrencies and what they can do to make our lives easier.

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