MoTA brings micro-transaction and transfer services to the technologically handicapped, under-served, remote and unconnected communities by lowering the barrier to entry and use of blockchain technology.
An informal value transfer system is an alternative and unofficial remittance and banking system, that pre-dates current day modern banking systems. The systems were established as a means of settling accounts within villages and between villages. It existed as far back as over 4000 years ago and even more. Their use as global networks for financial transactions spread as expatriates from the original countries settled abroad. Today, IVTS operations are found in most countries. Depending on the ethnic group, IVTS are called by a variety of names including, for example, hawala (Middle East, Afghanistan, Indian Sub-Continent); fei ch’ien (飞钱 or "flying money"; China); phoe kuan (Thailand); and Black Market Peso Exchange (South America). Individuals or groups engaged in operating IVTS may do so on a full-time, part-time, or ad hoc basis. They may work independently, or as part of a multi-person network. IVTS are based on trust. In general, operators usually don't misappropriate the funds entrusted to them.
Use of IVTS
IVTS are used by a variety of individuals, businesses, organisations, and even governments to remit funds domestically and abroad. Expatriates and immigrants often use IVTS to send money back to their families and friends in their home countries (for workers who worked abroad) or foreign countries (for merchants who need extra money to start a business). IVTS operations are also used by legitimate companies, traders, organisations, and government agencies needing to conduct business in countries with basic or no formal financial systems.
The Idea was born while observing the growth and impact of mobile-money technology on the lives of the middle and lower income bracket in parts of Africa and Asia. This is also while observing the phenomenal impact and radically innovative potential of blockchain technology.
The critical point of concern are the prominent barriers to entry and limited use cases for technologically disadvantaged regions of the world in blockchain technology adoption. Well, the story is that in Africa and many parts of Asia, inter-city financial transactions and remittance are beginning to be dominated by this technology known as mobile-money. In the west we also see the growth of digital and electronic banking services including payment solutions such as paypal, cashapp and square.
We also see growing integration and interaction between these services. We believe one specific use case of blockchain technology can significantly enhance the quality of life of the low income demography. This is in the area of P2P transfers. There is however the hurdle of access to the middle-ware and a visible technological handicap. This is what Mode of Transfer Alternative (MoTA) is tackling by retooling existing resources to serve the target market and address their needs.
Established remittance services offer more or less guarantee that the funds will reach the recipient and eliminate the need to interact with complex systems. What is unique about mobile money services is that it is able to operate on relatively limited infrastructure (standard GSM with no internet and a basic kiosk) on the service delivery side. Mobile money and all the other remittance solutions mentioned are however bogged down by restrictions, high fees, cross-border constraints and centralization. These are challenges blockchain and cryptocurrency can address if the right model is used. MoTA Global has been developing a virtual network and hub platform since 2019 to addressing the limitations of exist remittance solutions while leveraging their strengths. We are growing the community around the concept that combines the benefits of blockchain and mobile-money technology while respecting the target consumers limited technological capabilities.
We did not re-invent the wheel. We built a very complex hub platform to connect with the existing spokes and wheels to achieve the desired outcome. Here we acknowledge some of the technologies and services that continue to set the pace.