Google, Gates Foundation join forces to bring digital payments to developing countries

The foundation says that a lack of interoperability between digital financial services and payment platforms is one of the major reasons why nearly 1.7 billion people around the globe.

The foundation called Mojaloop. (Mojaloop)

Google, Bill and Melinda Gates Foundation coupled with other charitable organisations including Coil, ModusBox, Omidyar Network, and The Rockefeller Foundation, have joined forces to launch a charitable organisation that is aimed at bringing digital payments to developing countries.

The foundation called Mojaloop, which is named after Swahili word for "one", is a reference model for payment interoperability between services and providers. It is an extension to the financial inclusion efforts initiated by the Mojaloop open source software project that was established by the Gates Foundation in 2017 to support its financial inclusion work.

"With the launch of the Mojaloop Foundation, the work initiated by the Mojaloop project will continue to serve banks, digital financial service providers, governmental offices, NGOs, regulators, technology companies and other entities in emerging economies where financial inclusion efforts can most benefit underserved communities," the foundation wrote in a press release.

The foundation says that a lack of interoperability between digital financial services and payment platforms is one of the major reasons why nearly 1.7 billion people around the globe lack access to digital financial services despite having 'money mobile services' in their countries. The foundation further notes that building interoperable systems that are inclusive to all can be costly and complex. This is where Mojaloop comes into picture.

"Mojaloop serves as a blueprint for how to simplify and reduce the cost of payment interoperability so that banks and other providers can develop tools that meet the needs of emerging markets and the unbanked," the foundation added.