Many citizens in developing countries are financially excluded. Unable to open bank accounts or access loans from mainstream financial institutions, their livelihoods are constrained through no fault of their own.
This makes accessing mobility services, either as a user or provider, impossible.
For more insights on mobility in Africa, check out the regional stream at the on-demand section of the Global Fleet Conference.
Financial exclusion is one of the primary causes of poverty and undermines the quality of life for millions of citizens worldwide. As a result, it keeps the brakes on many nation’s economies that could otherwise thrive.
However, according to an article in IT News Africa, blockchain and cryptocurrencies are all set to sneak in, usurp mainstream banks and steel control from right under their noses.
Stealing a march on mainstream finance
According to Reuters, Africa is already on its way to becoming cashless. Telecoms operators in the rainbow continent currently manage way more payment transactions than mainstream banks. Africa holds the title of world leader in mobile payments.
While the big banks drag their feet, crypto, blockchain and FinTech startups are speeding up financial inclusion via mobile payment services and apps.
The rise of a cashless Africa
Smartphone penetration in Sub-saharan Africa is way higher than landline internet, which is significantly more expensive to install. 75% of web traffic in Africa is generated via smartphones and only 24% via Desktop PCs. In Kenya, internet penetration is 85.2% of the population, followed closely by Libya at 84.2%. Kenya is home to mobile payment service M-Pesa, which provides a mobile wallet and offers secure payment systems. Nigeria has the highest number of internet users in Africa (154.3m). Kenya has 12m more internet users than South Africa.
Blockchain’s ability to give users and transactions a digital identity can unlock barriers for citizens in poorer countries. Such an identity can give them access to a range of services – including mobility.
Enabling access to financial services
A recent study by the World Bank, Cambridge University and World Economic Forum established that blockchain-powered FinTech projects have helped expand access to financial services in emerging markets.
Through cryptocurrency, people without bank accounts can access the global digital economy using only a smartphone and crypto apps. They can then use cryptocurrency to pay for everyday items and services without needing a bank account.
The Blockchain Council, which is a group of 1500 experts and enthusiasts from 300 companies in 90 countries say that the introduction of digital currencies, empowered by blockchain technology, has the potential to power financial inclusion globally. People will be able to improve their standards and raise their household incomes.
In terms of mobility, using Cryptocurrencies on the blockchain platform has the potential to enable Africa’s citizens to pay for and use mobility services, which in itself will help them improve their lives in many ways, not least through access to better employment.
By registering a free account with us, you get access to premium content on both the Knowledge Center on Fleet Europe and the Knowledge Center on Global Fleet.
*Image courtesy of ShutterStock