South African Economy's Informal Sector Set for Transformation through Innovation by Lipaworld in Payment Systems
Financial Technology Company Lipaworld Launches Service in South Africa
Financial technology company Lipaworld has launched a new service in South Africa, aiming to provide a faster, more secure, and cheaper alternative to traditional banking and remittance systems. The platform is designed to serve those who are not traditionally served by these systems, such as freelancers, immigrants, and small informal businesses.
Lipaworld leverages stablecoin technology and blockchain to create a simple, inclusive financial system. The core offering is a virtual bank account powered by USDC stablecoins, allowing users to earn dollarized income, send cross-border payments, and spend digital dollars in a local marketplace.
By using stablecoins—cryptocurrencies pegged to a stable asset like the US dollar—Lipaworld bypasses costly foreign exchange fees, high remittance costs, and banking delays typical of legacy finance systems. Users control their funds through a self-custodial wallet that operates like a standard money transfer or payment app, but with increased speed and security.
The platform addresses key pain points in South Africa's informal sector, which is traditionally excluded from formal financial services. Freelancers can invoice clients and receive international payments within minutes, immigrants can send money home with affordable costs, and informal merchants gain access to digital financial tools. Lipaworld plans to expand its ecosystem to include credit and merchant services to further support this market segment.
Founder Jonathan Katende emphasizes that Lipaworld is not about speculative crypto but about offering financial access. He sees stablecoins as a regulated, reliable way for people to manage their finances. The platform partners with stablecoin issuer Circle.
For freelancers, the service means getting paid in minutes instead of days. Immigrants can avoid exorbitant fees when sending money home. The platform is a part of the fintech industry, contributing to the growth and development of the financial technology sector in South Africa.
In summary, Lipaworld uses stablecoin technology and blockchain to create a simple, inclusive financial system tailored to the needs of South Africa’s informal economy, improving access, reducing costs, and speeding transactions compared to traditional banks and remittance providers.
References: [1] Lipaworld. (n.d.). Retrieved from https://www.lipaworld.com/ [2] Stablecoins: A New Era for Remittances. (2021, March 17). Retrieved from https://www.finextra.com/blogposting/21580/stablecoins-a-new-era-for-remittances [3] Lipaworld Partners with Circle to Expand Financial Services for the Informal Economy. (2021, April 21). Retrieved from https://www.circle.com/en/blog/lipaworld-partners-with-circle-to-expand-financial-services-for-the-informal-economy
- Lipaworld, a financial technology company, has introduced a service in South Africa, offering a more efficient, secure, and cost-effective alternative to traditional banking and remittance solutions.
- The platform, designed for freelancers, immigrants, and small informal businesses, utilizes fintech, data-and-cloud-computing technology, and stablecoins, bypassing typical costs of foreign exchange, high remittance costs, and banking delays.
- Users can gain control of their funds through a self-custodial wallet, accessing features similar to standard money transfer or payment apps with increased speed and security.
- The platform addresses South Africa's informal sector, offering solutions for freelancers to receive payments quickly, immigrants to send money home affordably, and informal merchants to access digital financial tools.
- Lipaworld aims to expand its services, including credit and merchant services, to further serve the informal economy, contributing to the fintech industry's growth and development in South Africa.
