Fonbnk and Mento Labs: Connecting Cash-Based Economies to DeFi with Mento Stablecoins
November 19 2024
by Behice Uzun
Throughout many emerging markets, cash remains the primary means of transactions, with large portions of the population operating outside the traditional banking system. This “cash economy” is essential for daily life, but limits individuals' access to broader financial services and makes it difficult for them to participate in the global digital economy. For millions without bank accounts, mobile phones are often their primary financial tool, creating an opportunity for solutions that bridge cash-based transactions with digital assets. This is where on and off-ramp services play a critical role.
Fonbnk, in partnership with Mento Labs, equips users to switch smoothly between cash and digital currency. By allowing people to convert prepaid mobile payments into stablecoins like Mento’s cUSD (Celo Dollar) and cKES (Celo Kenya Shilling), Fonbnk provides a secure, and accessible entry point to decentralized finance (DeFi) for cash-reliant communities. This seamless transition enables users to make cross-border payments, save in digital currencies, and engage in e-commerce without needing a traditional bank account. For many across emerging markets, Fonbnk’s solution offers users the financial access and freedom needed to fully participate in the digital economy.
About Fonbnk
Fonbnk is a platform that connects underbanked and unbanked populations with Web3 ecosystems through stablecoins and carrier communication protocols. With Fonbnk, users can convert prepaid mobile payments into global and local currency stablecoins and engage in the digital economy directly from their phones.
Traditional mobile money services are primarily limited to local transactions. Fonbnk enhances these services by allowing users to convert their mobile credits into stablecoins. This conversion opens up access to a broader range of financial options, including saving in dollar-pegged stablecoins like cUSD and accessing credit in cKES, a local currency stablecoin pegged to the Kenyan Shilling, the currency in which users earn their income. By participating in the DeFi economy through Fonbnk, users can also engage in fast and low-cost cross-border payments, extending beyond the scope of traditional mobile money systems.
Mento Stablecoins in Action
Mento provides the infrastructure powering a versatile suite of decentralized stablecoins designed to support real-world applications in emerging markets. Through its growing multi-currency stablecoin ecosystem, Mento, in partnership with Fonbnk, connects the needs of local economies with the opportunities of the global financial system. Stablecoins like cUSD facilitate international transactions, while cKES caters to local transactions in Kenya, equipping users with a wide range of financial tools for saving, remittances, payments, and microcredit. Fonbnk plays a crucial role in the Mento partner ecosystem, facilitating easy access to stablecoins and enabling users to tap into the real-world use cases of Mento’s decentralized stablecoins.
Measurable Benefits
Working together, Fonbnk and Mento Labs deliver tangible benefits, highlighted by the successful integration of Mento’s local currency stablecoin, cKES. The joint campaign, incentivizing users with cKES bonuses has played a significant role in driving these results.
- The user-friendly onboarding process for converting prepaid airtime into digital currency in local currency has encouraged higher adoption rates in Kenya.
- The introduction of cKES has streamlined the on-ramping process, resulting in a 30% increase in transaction activity in Kenya. Transactions are settled under 30 seconds.
- Users making their initial transactions with cKES were 25% more likely to continue with additional transactions, highlighting strong engagement and a preference for stablecoins in their regular, everyday activities.
Fonbnk and Mento Labs’ Partnership Testimonials
"Fonbnk’s ability to connect mobile users to digital assets is essential to our mission of providing people with a pathway to reliable and lasting financial stability and freedom. We're excited to work together for the upcoming launch of a Ghanaian Cedi stablecoin (cGHS) on the Mento platform which will further support users in Ghana," said Markus Franke, CEO at Mento Labs
“Partnering with Mento Labs enables us to tackle core challenges in financial inclusion. By converting prepaid mobile credits into stablecoins like cUSD and cKES, we're creating a decentralized pathway that integrates cash-based economies into the digital financial system. This initiative empowers individuals to access a wider range of financial services, fostering greater participation in the global economy,” said Christian Duffus, CEO at Fonbnk
Moving Forward
Fonbnk continues to expand its services with the Fonbnk Pay Widget and partnerships with companies like Payd and Valora. Through these collaborations, Fonbnk is deploying no-code and low-code tools for developers and businesses, advancing the reach of Mento’s cKES and cUSD. These tools simplify market entry for businesses and make it easier for developers to integrate and adopt Mento stablecoins. Alongside the cKES rewards campaign with Valora, Fonbnk has launched an initiative with Payd to engage freelancers, gig workers, and small businesses. This joint campaign aims to promote cross-border payments and support savings within the freelance community.
Looking ahead, with a growing demand from the Mento community for a Ghanaian Cedi stablecoin (cGHS), introducing this local currency could strengthen Fonbnk's offerings in Ghana by giving users access to a familiar and trusted currency option.
To stay connected with Fonbnk for more campaign and product updates, make sure to follow them on X / Twitter and LinkedIn.
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