Boom, a blockchain-based ecosystem, has unveiled a groundbreaking online payment gateway named Boom Pay. This platform is designed to facilitate merchants in collecting payments from the vast demographic of 2 billion unbanked consumers across Africa. The introduction of Boom Pay signifies a significant stride towards financial inclusion for populations traditionally excluded from global markets due to limited access to conventional banking systems, as highlighted in a press release on Monday (Feb. 19).
A Holistic Approach to Socio-Economic Inclusivity
Naomi Bourgarel, Chief Product Officer at Boom, expressed that Boom Pay extends beyond being just a payment solution. It is positioned as a crucial step towards achieving socio-economic inclusivity for all. The platform aims to simplify adoption, inviting the global community to join Boom on its mission.
Boom Pay allows consumers who have undergone know-your-customer verification to conduct digital payments to online merchants. The platform is an integral part of Boom’s super app, an inclusive eCommerce platform enabling users to engage in online buying and selling without the necessity of a traditional bank account. Users can fund their wallets with cash through authorized Boomcoin resellers, facilitating an on-ramp into cryptocurrency and broadening their economic opportunities.
Addressing Challenges for Underserved Populations and Merchants
By incorporating the Boom Pay SDK, online merchants can accept user payments, addressing challenges faced by underserved populations and merchants seeking to tap into emerging markets. The utilization of blockchain technology provides Boom Pay with several advantages, including immediate revenue growth, instant payment settlements, reduced transaction fees, and enhanced security.
Cryptocurrency Adoption in Sub-Saharan Africa
Cryptocurrency adoption for retail transactions has gained traction in Sub-Saharan Africa. Chainalysis reported in 2022 that transactions valued under $1,000 accounted for 80% of all crypto activity in the region based on the number of transactions. This trend is supported by the presence of a large unbanked and underserved consumer base, coupled with robust smartphone penetration across these markets.
Farzam Ehsani, CEO at FinTech firm VALR, highlighted in an interview in April 2022 that cryptocurrency plays a pivotal role in facilitating cross-border transactions at a fraction of the cost and time compared to traditional systems. This further underscores the relevance and significance of cryptocurrency in emerging markets, aligning with Boom’s initiative to empower the unbanked and underserved.
In conclusion, Boom’s introduction of Boom Pay represents a crucial advancement in fostering financial inclusion across Africa. By leveraging blockchain technology, the platform not only addresses the challenges faced by underserved populations but also provides merchants with a streamlined gateway to emerging markets. As Boom Pay takes center stage, it symbolizes a transformative force in the journey towards a more inclusive and accessible financial landscape for all.
