An application programming interface (API) “is an architecture that makes it easy for one application to ‘consume’ capabilities or data from another application” (Apigee). It is a protocol that allows software programs to “talk” to one another, defining what information should be supplied and what actions will be taken when it is executed. A common example is Uber’s use of Google Maps.
APIs are important to financial inclusion because they connect third-parties to established payments platforms e.g for M-PESA or MTN MOMO to deliver innovative services that address the needs of many customers. Many operators including Safaricom, Airtel, Vodacom/Vodafone, Orange, MTN have started initiative to avail their API over the web in what would be called an OPEN API approach. This approach will make it easier for different innovator to integrate to these renown telcom platforms and easily have their financial service for the poor innovations realized.
To go a level higher, Mojaloop which is widely thought and planned to be the potential and ultimate enabler for interoperability avails an open API that any stakeholder integrating into a mojaloop switch will easily have access to.
Innocent Kawooya CEO of HiPipo notes that under our Include Everyone program, We believe that open API, GSMA API and Mojaloop will be key to improve Financial Services for the Poor given the wide scale innovation that they would enable for small, medium and large enterprises and fintechs that are looking to contribute to Financial Inclusion.
Mojaloop grew out of principles set forth by the Financial Services for the Poor team at the Bill & Melinda Gates Foundation. With support and funding from the Bill & Melinda Gates Foundation, Mojaloop was designed by a team of leading tech and fintech companies: Ripple, Dwolla, ModusBox, Software Group and Crosslake Technologies
In all Africa countries that have adopted digital financial services, Digital and mobile technologies make it possible to reach new customers with innovative, low-cost financial services. While this interconnection is feasible, the lack of a shared platform connecting all financial services players, means that financial providers have to build everything on their own which this raises costs.
Mojaloop as an open-source software for creating digital payments platforms that connect all customers, merchants, banks, and other financial providers in a country’s economy will make it cheaper for interoperability realization in all markets.
Being opensource, mojaloop is expected to grow robust and stable with community contributions while financial services players use the open-source software to help build digital, interoperable payments platforms that drive financial inclusion on a national, regional and continental scales.
Majoolop based platforms will enable seamless, low-cost transactions between individual users, merchants, banks, providers, and even government offices – helping connect poor customers with everyone else in the digital economy.
Mojaloop grew out of principles set forth by the Financial Services for the Poor team at the Bill & Melinda Gates Foundation. With support and funding from the Bill & Melinda Gates Foundation, Mojaloop was designed by a team of leading tech and fintech companies: Ripple, Dwolla, ModusBox, Software Group and Crosslake Technologies.
As part of our Include Everyone Program and as contributors in the open source community. HiPipo will spearhead outreach programs to popularize Mojaloop and promote its adoption at different national levels. Innocent Kayoowa CEO of HiPipo noted that unless individuals, fintechs and all concerned parties on the African continent take on the challenge and mantle of promoting practical projects and product such as Mojaloop that promote interoperability, the cost of financial services will remain on the higher side hindering many of the poor to actively participate and be financially included.