Ada Payments In Africa

[GENERAL] Name and surname of main applicant

Kelly Muhindi

[GENERAL] Email address of main applicant

muhindi.kn@gmail.com

Additional applicants

Harun Mwangi

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

12

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

Yes

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.” .

M-Pesa Integration: We need to connect to the M-Pesa API which requires a formal application. An M-pesa account (Paybill/Till number) is also necessary to receive and send funds from and to users.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] If NO, please describe which outputs are not going to be open source. If YES, please write “Project will be fully open source.”

The backend logic that connects to the M-Pesa API will be closed. However, the smart contracts that will facilitate asset transfers will be fully open source for any person to verify.

[METADATA] Category of Proposal

RealFi

[IMPACT] Please describe your proposed solution.

Ease of Real-world utility: For most crypto enthusiasts in Africa, one of the main questions, once they buy some crypto, is: what next? Usually, the answer is to hold and wait for price gains. This project aims at bridging the gap between asset holding and real-world utility. We aim to build a product where a person holding ADA or any other Cardano Native asset will be able to make payments for everyday goods and services seamlessly using their assets. The providers of these goods/services do not have to sign up but receive their payment in fiat through their preferred mobile-money payments platforms which are prevalent on the continent. If they so choose, the service providers can also create an account on the application and receive payments in Cardano Native assets.

According to the 2022 GSMA report, sub-Saharan Africa had 781 million mobile money accounts which represent over 50% of the global number of accounts. Additionally, the continent transacted a total value of $861 billion in the same year on mobile money accounts. These numbers are projected to increase over the coming years.

For the MVP, the focus will be integration with M-Pesa. M-Pesa is accessible in the majority of the countries in Sub-Saharan Africa where there is high crypto adoption, making it ideal for bridging the fiat-to-crypto gap. As a result, the everyday utility for ADA will be achieved.

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

Our proposed solution addresses the challenge by building a service that helps on-ramp Africans into crypto through ADA by introducing real-world utility through merchant payments. Our goal is to roll out an MVP in Kenya which has the highest number of mobile money users with over 25M M-PESA users. This will bring more adoption into the Cardano ecosystem by enabling Africans to access and use Ada in everyday life.

Africa’s cryptocurrency market grew by 1200% between 2020 and 2021 with Kenya, Nigeria, South Africa, and Tanzania ranking in the global top 20 in crypto adoption (State of Web 3 in Africa: Kenya, Nigeria, and South Africa, by Emurgo Africa and PWC 2023).

With over 4.5 million Crypto users in Kenya alone as of 2021, We believe that with the current age demographics, mobile and internet connectivity, and ready legislation, such a service will be readily embraced and by being the first of its kind and first to market, will have a significant impact on the Cardano ecosystem.

[IMPACT] How do you intend to measure the success of your project?

The criteria that must be met to consider this project a success.

• Register at least 1000 users in the first 3 months of roll-out.
• Achieve a daily transaction volume of at least $10,000 after the first 3 months.
• Register at least 100 merchants to accept Ada payments for different goods and services within 3 months of roll-out.
• Maintain a registration count of 500 new users every month after the first 3 months.

[IMPACT] Please describe your plans to share the outputs and results of your project?

Development will be based on milestones on which we plan to share the outputs and results through monthly progress meetings which will be open to the public.

With a sprint-based approach, we will constantly be using feedback to improve and scale the product. We will also build a metric logging feature to measure the features users are engaging with most, this will be used to further research and development for the next iteration.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

The team is composed of Emurgo-certified Cardano developer professionals with experience in Plutus, Lucid and similar Cardano Smart Contract development languages.

We have a cumulative experience of 14 years in Software development ranging from Front end web development, Back-end development and Android mobile development.

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

The goal of the project is to drive adoption in the Cardano ecosystem especially in Africa by providing real-world utility to Ada holders.

The feasibility of our approach in achieving the goal can be measured by;

• Attaining a registration of at least 1000 users in the first three months of roll-out.
• Achieving a daily transaction volume of at least $10,000 after the first three months.
• Registering at least 100 merchants to accept Ada payments for different goods and services within three months of roll-out.
• Maintain a registration count of 300 new users every month after the first three months.

[CAPABILITY/ FEASIBILITY] Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

Milestone 1: UI mockups and account signup

This milestone is set for achievement in 1 month. It includes the design of the UI and implementation of the user signup feature. 

Milestone 2: Wallet Management

Target in 2 months. We implement a hosted wallet solution that is secure and reliable

Milestone 3: Ada to fiat payments

Target 4 months. At this step we build the feature that will allow users to pay in Ada and providers receive fiat in mobile money wallets. At this stage, we integrate with the M-Pesa API to provide this functionality.

Milestone 4: Alpha testing and security audit + marketing 

Target 2 months. This includes rolling out the app MVP to a group of incentivized users who will provide feedback on the features. A security audit will also be carried out to ensure the app meets high-security standards.

In addition, we build a branding site for marketing purposes.

Milestone 5: Public Beta and Marketing

Target 3 months. We roll out the app to the public in beta to the public and build a website for branding and marketing purposes. Additionally, we will create social media accounts for continuous user engagement.

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

Milestone 1: UI mockups and account signup:

• UI mockups should be ready with tested and working user management. A user will be able to sign up for an account and log in.

Milestone 2: Wallet Management:

• A user should be able able to create a safe and secure wallet and receive Ada in their Wallet.

Milestone 3: Ada to fiat payments:

• At this milestone, we will deliver a feature that allows users to make Ada to Fiat payments using the popular M-Pesa mobile money platform.

Milestone 4: Alpha testing and security audit + marketing:

• The first MVP of the application will be rolled out to a select group of testers. Concurrently, a third-party security auditing service will be consulted to test for vulnerability assessment and penetration testing in the mobile application architecture and ensure that it is safe and secure.

Milestone 5: Public Beta and Marketing:

• The brand marketing website should be ready. Marketing approaches will be measured and improved to help meet the intended sign-up and transaction volume targets.

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

Milestone 1: Planned to take one month;

1. UX Design (mobile UI + brand website) = 4,700 ADA
2. Dev Tools (GitHub) = 470 ADA
3. Cloud Costs = 19,000 ADA
4. Developer Charges = 7,800 ADA

Total = 31, 970 ADA

Milestone 2: Planned to take two months;

1. Developer Charges = 15,600 ADA

Milestone 3: Planned to take four months

1. Developer Charges = 31,200 ADA
2. Mpesa Integration = 1,600 ADA

Total = 32,800 ADA

Milestone 4: Planned to take two months;

1. Developer Charges = 15,600 ADA
2. Security Audit = 31,200 ADA
3. Marketing, Social Media & Events = 6,300 ADA

Total = 53,100 ADA

Milestone 5: Planned to take three months;

1. Developer Charges = 23,400 ADA
2. Marketing, Social Media & Events = 12,500 ADA

Total = 35,900 ADA

Ada Priced at 0.32 USD

[RESOURCES & VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

Ultimately, the main goal for the project is to drive more adoption of ADA and Cardano DeFi, overall, we believe this is a great outcome for the community and will help grow Cardano. 

Being that both of the team members are Kenyan, we have set a lower rate for developer fees as compared to current local market rates for salaries.

[IMPORTANT NOTE] The Applicant agreed to Fund10 rules and also that data in the Submission Form and other data provided by the project team during the course of the project will be publicly available.

I Accept