Stellar.org in partnership with Oradian is set to launch a low-cost live payment transfer network among Nigerian microfinance organizations.
Stellar, which was originally created by Mt. Gox Stellar, is a non-profit foundation with the goal of connecting different financial systems around the world.
The foundation announced the launch of a new payment-transfer network inside Oradian, built on top of Stellar’s platform.
Oradian, whose core banking application, Instafin, is said to be used by microfinance institutions all over Nigeria, will allow 300,000 Nigerians to cheaply transfer money between MFIs over the Stellar network.
Integrating the Stellar network into Instafin will enable instant transfers between all the branches of the microfinance institutions that are powered by Oradian’s software. This also means that microfinance bank customers who are mainly based in rural areas will be able to send money to other microfinance bank customers in distant villages or cities, in real time, by simply visiting their local microfinance bank.
The logic at work here is that unlike regular commercial banks, microfinance banks are much closer and accessible to rural populations, making them an ideal channel to deliver improved financial services.
“We’re beyond excited to be working with Oradian…” said Joyce Kim, Executive Director of Stellar.org in an emailed statement announcing the launch and partnership.
“With the Oradian integration, communities that primarily relied upon cash for money transfer in and out of their villages can now transfer money instantly and safely, regardless of their location. This is the first step towards creating a universal payment network for the unbanked, and brings us closer to fulfilling Stellar.org’s mission of using a universal platform to bring financial services to all.”
The foundation added that Nigeria not only has the largest economy in Africa, but also has the largest population. But, despite these numbers, the nation remains economically isolated from the rest of the world.
In light of this development, Stellar.org’s executive team is currently in Nigeria, for adequate preparation for the launch.