1 - Cross border payment solution
Most people in Sub-Saharan Africa don't have access to financial services. Although Mobile money has driven financial inclusion, there is roughly 60% (sixty percent) of the population who still don't own an account with a financial institution or with a mobile-money-service provider according to the World Bank. Mobile money itself doesn't solve the problem of friction because it doesn't support international cross border payment, interoperability is limited and there are still very high fees. Moreover, Sub-Saharan Africa is a cash based society. People like sellers and small businesses used to remain on informal middleman to send money abroad for paying their suppliers with high risks of theft and money laundering.
Dyapay plans to offer his users solutions to perform cross border payment to suppliers without a bank account using Circle payouts API in background which supports Bank wires and On-chain USDC transfers. Dyapay will leverage on Stellar USDC, abstracting the complexity of transacting with different currencies to enable seamless, instant, and low-cost cross-border payments services. Dyapay plans to become a Stellar anchor with the goal to issue XOFD, a fiat-collateralized stablecoin in order to provide fiat on ramp and fiat off ramp services in francophone West Africa.
2 - P2P money transfer
Remittance is a subject matter due to high cost corridors and low financial inclusion particularly in sub-Saharan Africa. Population have to rely on cash manipulation most susceptible to fraud and prone to theft.
Dyapay plans to offer peer to peer payments services for allowing its users to transfer funds from one person to another over the Stellar blockchain network in a cost efficient way. Stellar AMM is involved through path payments in order to find the best exchange rates.
Due to low financial inclusion, roughly 60% of the population in sub-Saharan Africa don’t have access to services as simple as saving accounts. The economic downturn caused by the pandemic effects on the global economy, affects living standards of the population, particularly the most vulnerable.
Yield earnings is a product similar to cash deposit into a savings account at a traditional bank, with the particularity to benefit from Decentralized Finance to democratize access to passive income for everyone without a bank account. Users are incentivized to provide liquidity to our pool on Stellar AMM and are rewarded by capturing fees on every transaction they are involved in.
14 countries from sub-Saharan Africa, altogether representing nearly 130 million of habitants, use CFA franc as national currency. The fixed peg of the CFA franc to the euro has helped the West and Central African in achieving considerably higher macroeconomic stability than in most other regions of SSA over the past decades.
We will take advantage of this stability to reduce the risk of impermanent loss for our users involved in liquidity providing pool between USDC and XOFD, fiat-collateralized stablecoin we plan to anchor in Stellar for representing CFA franc.
4-Get paid service
Sell goods or services in a cash based society has important limitations and risks:
Moreover, Cash manipulation may involve an important number of intermediaries resulting in heavy cost.
Dyapay plans to offer get paid service for businesses to be able to receive payments from their clients in a simple and secure way. The seller will be able to generate a QR code to get paid by a client who can use his local mobile money wallet or his Dyapay account. This service will be built on top of Circle Payments API which allows to take payments from your end users via traditional methods such as debit & credit cards, bank accounts (wires and ACH), etc.
With the growth of e-commerce, our solution will help businesses to expand new markets and allow their clients to pay in their preferred currency via payment card, local bank transfer or using their Dyapay account.
We are building Dyapay on Stellar blockchain to enable fast and efficient transactions which cost a fraction of a penny.
Dyapay has previously been selected for DFS Lab’s Blockchain Bootcamp in collaboration with Stellar Development Foundation (SDF), an intensive and challenging three days program.So far, our team is working on prototyping stage.
Our 6 months goals is to finalize with prototyping, enabling MVP product through our alpha version opened to public testing.We expect to attract users with real uses cases in order to fine tune our market and prepare for a beta version in Q4 2022 more suitable to users need and more scalable.
Phase 1 : Prototyping – Q1 2022
Phase 2 : Test / Improvement and validation – Q2 2022
Phase 3 : Seed funding and legal establishment – Q3 2022
Moving money in and out Africa is very challenging especially for SME/SMI, freelancers and businesses in informal sector. Commercial relationship between Africa and the rest of the world has growed significantly, complexifying cost of the trading corridors with Africa. Friction is the most important in Sub-Saharan Africa where 80% of the population have no access to a bank account and are excluded from basic financial services.
Dyapay aims to be a simple mobile wallet allowing his users to send money abroad instantly without a bank account at low cost. We offer our users access to the global digital economy: purchase online, get paid, perform peer to peer transfer and wire transfers worldwide in a simplest way. Dyapay is part of the next generation of money transfer and payment services, using decentralized finance to involve users to participate to a sharing economy model by providing liquidity and capturing fees as rewards on pools they are involved.
Stellar makes it easy to create and transfer digital representation of money within anchor’s ecosystem at a very low transaction fee. Dyapay will operate on Stellar behind the scene as following:
The back-end will be interfaced with mobile money API of telecom companies operating in West Africa for remote and automatically funds pick up or deposit in local currency. We also plan to rely on MoneyGram network for cash funding and payout in local currency with an expected implementation of near-real-time settlement and USDC conversion on international markets in 2022.
Back-end will also manage user authentication to mobile application while we plan to rely on AWS Key Management Service (KMS) to store and protect blockchain cryptographic private keys.
Users will be charged an extra processing fees on cross border payment transactions. Fiat on ramp and P2P payment will be free of charge for users. Fiat off ramp is charged 1% fee by our local mobile money telecom operator in Côte d’Ivoire. We also plan to charge 1% off ramp fee in case of partnership with money transfer agent.
Though our get paid service, Businesses will be able to accept payment from our community of users and from anywhere in the world from client using their preferred payment method (credit card, debit card, money transfer, mobile phone). Depending on transaction volume, we will propose businesses "pay as you go" on every transaction or to pay premium periodic subscription.
Liquidity providing and fees captured on cross border transaction will allow liquidity mining for DYA, our governance token. The governance token will be a tradable asset with objectives is to support research & development, dispose funds in order to buy back XOFD to arbitrageur in case of deviation from XOF, provide additional incentives to users to liquidity providing with rewards in order to increase the size of the liquidity pool resulting in less slippage.
Our pricing strategy is one of the most competitive because of free P2P transfer and low cost transaction fees. Stellar network cost a fraction of penny and decentralized finance simplify business processes.
Compliance is a subject of high importance when it comes to manage with financial services.
Our biggest challenge is to be compliant on every market we plan to expand.
Another big challenge is fiat on/off ramp in our local market of West Africa. We plan to start using mobile money telecom operator API. The risk they feel us as a direct competitor may lead to stop the API service.
We view low financial inclusion as an opportunity to gain market shares and scale. Commercial relationship growth supported by the economic recovery post pandemic is another big opportunity for our project.
Dyapay is breaking the limitations of people who were excluded from financial services before. We are less in competition but rather a complementary offer to expand financial inclusion.
Cross border payment :
Peer to peer :
Get paid :
We plan to reach our prospects on social networks (Facebook, LinkedIn) and street marketing.
Retail prospect: Our first plan to convert this kind of prospect into customers is low or free transaction fees, rewards on liquidity providing.
SME/SMI: we will focus on safety of funds on the platform, speed of transactions and cost efficiency (no hidden fees, no extra fees).
* The amounts shown are budget requests and not (yet) granted to the projects. During the Community Vote phase, voters can indicate whether the project deserves the amount it's asking for (budget request). The total pool of XLM available for SCF#11 is 8M XLM. SDF will allocate the XLM equivalent of the specified USD budget of the submissions with the most votes in descending order of rank until the earlier of (i) the XLM Pool is fully distributed (ii) there is not sufficient XLM remaining in the XLM pool to fully fund the next ranked submission or (iii) there are no remaining eligible submissions. The USD valuation of the budget request in XLM will be calculated using the CF Stellar Lumens-Dollar Settlement Price on December 5, 2022 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR). Learn more in the SCF Handbook.
*The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on July 5th as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)
**The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on December 16, 2021 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)
*The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on September 27, 2021 as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)
* The USD valuation of the award in XLM is calculated using the CF Stellar Lumens-Dollar Settlement Price on the date of transfer as administered, maintained, and reported by the cryptocurrency index provider CF Benchmarks Ltd. (using the ticker “XLMUSD_RR”) (available at https://www.cfbenchmarks.com/indices/XLMUSD_RR)