Payd and Mento Labs: Empowering the Gig Economy with Decentralized Stablecoins
November 5 2024
by Behice Uzun
The gig economy is growing at an unprecedented rate. It has become a powerhouse in the labor market, now accounting for an estimated 12% of the global workforce and projected to keep expanding with over 30 million new freelancers entering the market in the coming years. Remote workers, and digital creators increasingly choose independent work for its flexibility and potential for diverse income streams. However, freelancers worldwide continue to face critical barriers when receiving payments, especially for cross-border transactions. Traditional payment methods often impose high fees, slow transfer times, and at times they are not accessible for certain locations. In regions like Kenya, reliable access to secure and stable banking systems is often limited.
Payd aims to tackle these challenges. By providing a stablecoin-powered, digital banking solution with cUSD (Celo Dollar) and cKES (Celo Kenya Shilling) stablecoins on Mento, Payd offers gig workers and businesses in emerging markets a streamlined way to receive, manage, and spend their earnings. Payd allows freelancers to receive payments globally in cUSD and spend locally with cKES, circumventing the high fees and lengthy transaction times of traditional banking.
About Payd
Payd is a stablecoin-powered digital bank designed specifically for freelancers, entrepreneurs, and small businesses in emerging markets. Payd empowers creators to generate invoices, receive payments in stablecoins like cUSD, and access local stablecoin options such as cKES for everyday spending in Kenya. Payd wallet is designed for easy navigation of global finance as a versatile solution for digital workers looking to manage their finances independently of traditional banks. It also provides APIs and enables developers to integrate fiat-stablecoin experiences into their applications by offering an ecosystem that supports both fiat and stablecoin conversions.
Payd’s Solutions
Global payment solutions with stablecoins: Payd allows users to receive global payments in US Dollar stablecoins (cUSD) and effortlessly convert them to local currency stablecoins (cKES), offering freelancers a complete suite of financial tools.
User-friendly wallet and invoice generation: With Payd’s wallet, users can create invoices and payment links to receive payments in either fiat or stablecoins. This feature supports straightforward financial management for both freelancers and the businesses who hire them.
Developer tools and FX APIs: Payd’s platform includes FX APIs for easy US Dollar-stablecoin conversions, enabling developers to build applications that support businesses with fast, reliable cross-border payments.
Localized experience with local stablecoins: By supporting transactions in cKES, Payd helps Kenyan gig workers and entrepreneurs engage with local vendors, pay for goods and services, and participate in Kenya's economy without the high fees associated with foreign exchange.
Mento Stablecoins in Action
Mento, as a decentralized multi-currency stablecoin ecosystem, bridges the gap between global and local financial needs. Supporting a suite of stablecoins including cUSD for international transactions and cKES for local transactions in Kenya, Mento allows partners like Payd to deliver financial flexibility that enables real-world use cases.
For global transactions, cUSD offers a secure and stable way for digital workers to receive payments in a US Dollar-denominated currency, protecting their earnings from the volatility and high inflation common in local currencies. With Payd’s swap feature, users are also provided with a flexibility to convert these earnings into a currency like cKES that aligns with their everyday needs, facilitating payments, savings, and even microloans in local economies. By offering access to cKES, users can also sidestep the FX risk often encountered when converting payments into their local currencies.
Measurable Benefits
Since its beta launch, Payd has demonstrated the value of stablecoin infrastructure for digital workers, processing over 3,443 transactions totaling 2.9 million KSH (Kenya Shillings).
During its year-long pilot, the platform facilitated transactions exceeding 45 million KSH, benefiting over 10,000 users across various countries in Africa.
Payd and Mento Labs’ Partnership Testimonials
“Freelancers constantly deal with slow payments, high fees, and FX volatility that eat into their hard-earned income. Partnering with Mento allows us to provide freelancers with stable, dependable payment options. With cUSD, users can secure income from global clients, and with cKES, they participate in the local economy and avoid FX risk. This level of flexibility is essential for digital workers who need reliable access to their earnings locally,” said Benaiah Wepundi, CEO at Payd.
“Mento Labs is on a mission to support the financial goals of individuals and businesses through adaptable, accessible tools. We believe in empowering users with both global and local stablecoins, as this flexibility is essential in today’s interconnected world. Our work with Payd reflects that we are committed to delivering a stablecoin ecosystem that meets users where they are, whether they need a US Dollar stablecoin for global transactions or a Kenya Shilling equivalent for daily use,” said Markus Franke, CEO at Mento Labs.
Moving Forward
In the months ahead, Payd will explore new features that expand beyond payments, including overdraft options, equipment loans for gig workers, savings and investment tools.
Mento, in partnership with Payd and Fonbnk, is running a cKES rewards campaign. To receive a cKES bonus, users should set up a Payd wallet, copy their cKES wallet address, and visit Fonbnk's merchant platform to create an instant link or QR code.
To stay connected with Payd for more campaign and product updates, make sure to follow them on X / Twitter and LinkedIn.
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