As a collective organized network - competition
You can build a tech gateway yes.
But you can also build a network of people gateway.
they have *agents* - people
maketplaces of networks of peer to peer crypto fx brokers
these peers can also form an entity and scale their business like any other company including BitPesa
network and marketplace
this essentially becomes the gateway
can tap in multiple channels in eg remittances, bill payments
can push out multiple channels locally
Trade, networks and trust intruments are the core of most scalable digital products.
My assessment is based on a bottom up approach
And more likely to succeed
An agent network.
So informal networks of online currency exchangers stepped up to fill the service gap
PayPal to Mpesa money changers
Skrill to Mpesa changers et al
So partnered with Online money services like Skrill and Paypal to offer Kenya's online freelancers and alternative.
A fintech service
Some still remain, there are still gaps. but the Mpesa service took a big bite of their market share
see what i did there?
I called it *their* market share
i think if the p2p money changers had been smarter, theyd have pulled together and built a formal compliant agency network company
And offer an alternative competing service
You see, current money laws are strict as hell. You need a license. 100 million KES as deposit for a license.
This locks out most people from exploring this as a business option. Its how the BIG boys stay in control
Regulations limit opportunities for people and also limit what is possible as business models
Bitcoin and cryptocurrency is unregulated.
So there are no chains of old, until someone sits down and crafts regulations.
Its like the online currency of old on steroids and speed. Its literally out of this world.
Its peer to peer. no set up costs. anyone can join. all material is online. and its a growing industry
Even the p2p money changers who lost to Mpesa, jumped on board.
So now you have a large network of p2p traders balancing supply and demand of an *unregulated* crypto
Why Kenya’s Cryptocurrency Agents of 2017 remind me of airtime p2p networks kioneki.com/2017/10/09/why…
Bitcoin ATMs in Nairobi are only a great idea on paper. Electronic ATMs have lost to human agents in Kenya kioneki.com/2017/10/16/why…
there's your gateway. no fancy fintech required
This already happens in nairobi with mobile money agents. You find a chain of 20 mobile money, bank, prepaid token agents operating as an outfit
Its the same w/minor tweaks.
B. One is intermediating a cryptocurrency, the other mobile money
C. One not yet regulated, the other is regulated
seek out partnerships
and most importantly
women traders of Kenya - Uganda - Rwanda corridor
"How do we grow adoption in Africa"
I tell them build peer to peer marketplaces and peer to peer marketplaces enablers
Give the "peers" the tools.
They'll do the rest
A. BitPesa type companies
B. Peer to peer type collectives
Peer to peer type collective more likely to succeed by a mile in this context - the East African market.
KBA formed IPSL and launched a collective payment network. One company, composed of member banks
Anyone can form a company and do this
The current money transmitter companies in Kenya can pivot to this
Who will do this?