A groundbreaking mobile application designed to facilitate offline payments has been developed by Nigerian innovator Temitayo Gbadebo. This app leverages Short Lived Distributed Ledger Technology (SLDLT) and Short Message Service (SMS) technology to enable seamless transactions without the need for internet connectivity.
Overcoming Internet Challenges with Offline Payments
In a statement to LEADERSHIP, Gbadebo emphasized that this innovation addresses significant challenges posed by limited internet access in Nigeria. He explained, “This innovative solution eliminates the need for Unstructured Supplementary Service Data (USSD) and any form of data transport to the financial institution’s server before a transaction is completed. It ensures that payments are finalized without relying on data transport to the financial institution.”
Importance of Offline Payments in Nigeria
Gbadebo highlighted that limited internet access in Nigeria, which has decreased from 45.57% to 43.53%, severely hinders financial transactions on mobile apps. Internet expansion efforts by telecom companies are impeded by various challenges, including fiber cuts, multiple taxes, excessive right-of-way fees, insecurity, high energy costs, and inflation. These issues underscore the necessity for an offline payment solution.
Mechanisms
The offline payments facilitated by Gbadebo’s app can be conducted in two primary ways:
- Person-to-Person Transactions: Utilizing technologies such as Near Field Communication (NFC), Bluetooth, or Wifi Direct, alongside Short Lived Distributed Ledger Technology (SLDLT) for updating transaction history.
- Transport Over SMS Line: Employing highly efficient compression technology for data exchange, enabling transactions without the need for internet connectivity.
Enhancing Financial Inclusion with Offline Payments
Gbadebo’s offline payment technology is vital for providing financial users and the unbanked population with the confidence to use financial services. This solution offers an assurance akin to having cash on hand, making it a significant advancement for financial inclusivity in regions with limited internet access.
Inspiration Behind the Offline Payments Solution
The idea for this offline payment system was conceived in 2021, after Gbadebo experienced difficulties with card payments due to poor internet connection and the absence of an Automated Teller Machine (ATM) in his area. This challenge motivated him to develop a payment system that can function independently of internet or USSD connectivity.
Conclusion
Temitayo Gbadebo’s innovative mobile app for offline payments represents a crucial development in the financial technology sector. By addressing the pervasive issue of limited internet access, this solution has the potential to revolutionize financial transactions in Nigeria and similar regions, ensuring that everyone, regardless of their internet connectivity status, can participate in the digital economy.
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