Open Payments Use Cases

We're looking for creative solutions that:

• Simplify cross-border and cross-currency transactions: Develop tools that make international and multi-currency payments effortless and accessible.
• Enhance financial inclusion: Create applications that provide access to essential financial services.
• Automate payments and financial workflows: Build solutions to streamline payment processes, reduce friction, and increase efficiency.

Problem statement:

• International transactions often involve multiple banks and payment processors, each charging a fee.
• Traditional payment systems can take several days to settle international transactions.
• Manual updates for currency conversion rates can be required, leading to potential errors and pricing inconsistencies.
• When purchases are displayed in foreign currency this confuses users and can result in a high cart abandonment rate, costing sales for retailers.

Possible solution:

An e-commerce solution with a “pay with Open Payments” flow.

Features could include:

• Real-time currency conversion with up-to-date, accurate exchange rates. 
• Instant transaction settlement, improving merchant cash flow.
• A seamless and intuitive checkout experience, reducing cart abandonment rates.

Problem statement:

• Access to credit is crucial for individuals and small businesses to invest in opportunities to improve their economic standing.
• Underserved individuals often do not have a formal credit history or stable employment records, making qualifying for loans difficult.
• The cost of processing and administering loans through traditional banks is often high and these are passed to borrowers through high interest rates and fees.
• In addition, they may have irregular or seasonal incomes, which are incompatible with the rigid repayment schedules of traditional loans.

Possible solution:

A user-friendly micro-loans platform that manages the loan lifecycle, from disbursement to repayment.

Features could include:

• Flexible repayment schedules that include variable repayment amounts or grace periods during off-seasons.
• Instant payment across different payment networks, reducing transaction costs and delays.
• Automated interest calculations, payment reminders, and real-time repayment tracking.

Problem statement:

• Recurring payments are susceptible to failures due to expired credit cards.
• For international customers, managing currency conversion rates can be challenging. Incorrect conversions can result in discrepancies between the amount charged to the customer and the amount received by the service provider.
• Traditional subscription models can be inflexible and expensive for customers if they don’t frequently use the service.

Possible solution: 

A subscription service that uses Open Payments to automate recurring payments based on usage, and reduce the complexity and potential for errors.

Features could include:

• An easy-to-use interface for managing subscriptions and viewing billing history.
• Instant and automated payment across different payment networks.
• Automation of currency conversion in real-time.
• Pay-as-you-use model with subscription payments linked to usage of the service.

Problem statement:

• Migrant workers often need to send a substantial portion of their earnings back home to their families in another country.
• Traditional remittance services can take several days to process.
• Senders and recipients often struggle with a lack of real-time updates to track the status of a transfer.

Possible solution:

A remittance application that enables near-real-time payments across borders.

Features could include:

• A transparent breakdown of all fees which allows senders to understand how much will be received on the other end.
• Real-time transfer status tracking.
• Support for multiple currency transactions, allowing senders to transfer money in their preferred currency while recipients receive it in theirs.

Problem statement:

• Donors often worry about where their money goes and whether it is used effectively.
• Traditional payment processing fees can also be high, reducing the amount of money that actually reaches the charity.
• International donations involve additional complexities such as currency conversion and cross-border fees making it more expensive for donors to contribute from different countries.

Possible solution:

An application that facilitates secure and transparent donations.

Features could include:

• Real-time donor notifications about how their funds are being used.
• Robust reporting that allows charities to generate accurate and detailed reports for donors and stakeholders.
• Facilitation of international donations.