Fonbnk
Content developed in partnership with Mercy Corps Ventures
Fonbnk and Mercy Corps Ventures partnered to accelerate digital economic access through the swapping of cellular airtime for digital currency.
Website: https://fonbnk.com/
HQ: Dover, Delaware, United States
Active Markets: Africa
Problem Addressed
In Africa, the digital economy is estimated to reach $180 billion by 2025, representing 5.2% of the continent’s gross domestic product (GDP). However, despite significant developments over the last few years a large digital divide continues to exist. Nine hundred million people remain unconnected to the internet, and the cost of connectivity and limited bandwidth remain barriers to participation. These individuals are left out of socio-economic opportunities in the formal economy that can catalyze development, such as employment opportunities for underserved groups, like the continent’s burgeoning youth population.
Project Description
Mercy Corps Ventures partnered with Fonbnk to launch a “Learn to Earn” program focused on financial and Web3 literacy and digital earning opportunities offered on Fonbnk’s ‘market maker’ program. Fonbnk focuses on enabling a frictionless, financial on-ramp to the digital economy for emerging market users. This is achieved through a distributed, person-to-person (P2P) marketplace that enables users to swap prepaid airtime for digital currencies, such as regulated USDC. In Africa, where prepaid airtime accounts for 94% of all mobile subscriptions and is actively treated as a de facto currency, this is an indispensable on-ramp into mobile commerce for 600 million African mobile subscribers. By leveraging the existing network of mobile phone accounts and the increase in mobile penetration, Fonbnk offers blockchain-powered marketplace that allows African mobile phone users to convert their airtime credits into digital money quickly. Users can also use virtual cards funded by digital money to make online payments.
Additionally, Fonbnk provides earning opportunities whereby interested and qualified individuals and enterprises earned additional income with their smartphones by acting as ‘market makers’ — individuals or companies that actively trade airtime on Fonbnk’s marketplace and ensure that Fonbnk users (Airtime Traders) can easily transact by creating liquidity for the swaps. Enabling these individuals and businesses to execute transactions, earn a commission on trades, sell any excess airtime, and use airtime in general as a form of transactable value creates a bridge to Web3 and the digital economy at large. Fonbnk’s learn-to-earn program allows job seekers to take courses on financial literacy and Web3 skills, earning small crypto incentives.
Through this pilot, young job seekers are offered localized learn-to-earn programs where job seekers can take courses on financial literacy and Web3 skills and the Fonbnk market maker opportunity. Once completed, participants will earn a small crypto incentive. Once individuals conclude the market maker curriculum, they can earn additional income by completing transactions on Fonbnk’s digital marketplace.
Through this model, Fonbnk expects to launch in new markets, including Kenya, Nigeria, and other select countries where the program will be directed towards underserved groups such as youth, women, rural communities, and low-income populations. The ambition of this pilot is to empower and upskill individuals to unlock income-generating opportunities for over 300 people in crypto and Web3 on the Fonbnk platform and beyond.
Business Data
Status: Active
Constituency Served: Historically excluded groups, youth, women, refugees
Networks: Circle, Stellar
Known Investors: Mercy Corps Ventures
Additional References: Pilot Launch Article
Progress to date
Fonbnk plans to launch in Kenya, Nigeria, and other select countries where the program will be directed towards underserved groups such as youth, women, rural communities, and low-income populations.
To date, Fonbnk has over 250,000 users across its platform.
Business Model
Fonbnk generates revenue through transaction fees.
Traction
The pilot is concluding and will report out impacts on the number of courses complete and revenues earned by participants.