Fonbnk provides an onramp for mobile-first, cash-based economies using prepaid airtime and USDC on Stellar

Fonbnk

They say time is money, and time is literally money in Africa – specifically airtime (synonymous with the talk, text and/or data credit balances), which is time spent communicating through a mobile phone. 64% of Sub-Saharan Africans own at least one smartphone as of 2021¹. Compared to their US or European counterparts, mobile phone users in Africa do not have the same affordable access to unlimited data plans and widely available reception; rather, they often rely on pre-paid SIM cards and buy the data they need a certain amount for their required access. 

Since airtime is so valuable and readily accessible compared to other forms of mobile money, it is actively treated as a “de facto currency” that can be swapped out for cash or used to barter for goods and services². However, due to the lack of robust cellular infrastructure across the African continent, airtime is subject to the whims and price increases of mobile carriers. According to the Africa Report, “[d]espite a 44% mobile penetration rate, Africa still has the world’s most expensive prepaid mobile data plans in relation to median incomes” with mobile data prices, on average, representing a staggering 8.76% of income.”³

Understanding that airtime is just as good as cash in terms of value and utility, founder Chris Duffus wanted to build a blockchain-powered marketplace that would enable African mobile phone users to quickly convert their airtime credits into digital money and back. This would enable individuals and businesses to purchase discounted airtime, sell any excess airtime, and use airtime in general as a form of transactable value. 

To accomplish this task, Fonbnk integrated Stellar into its application, recognizing that the network was optimal for issuing assets representing any form of value, including airtime, and transacting said assets. Fonbnk can now turn the 8 billion active prepaid SIM cards globally⁴ into virtual debit cards via tokenization on Stellar. With Fonbnk’s wallet, the 1.4 billion people currently unbanked can now access financial services and markets previously beyond their reach⁵.

Seamless Stellar On/Off Ramps

• When users load prepaid airtime credits onto their Fonbnk wallets, those credits are converted into MIN, Fonbnk's internal off-chain denomination for airtime. Users can choose to redeem their MIN for USD Coin (USDC) on Stellar (each MIN is pegged to USDC at a rate of 1 MIN = to $0.01 USDC), on-ramping then onto the Stellar network. The conversion happens near-instantaneously and with minimal cost.
• Users can then use USDC to purchase goods/services not readily available in their markets; or, they can use USDC to top up their phones with discounted airtime, off-ramping back into MIN or physical cash through Stellar anchors, for example at one of MoneyGram's many locations.
• Fonbnk also allows users to buy MIN with debit, credit, or crypto or send MIN to their family and friends.

A Frictionless User Experience

• To ensure that their users were able to conduct microtransactions at scale through a sticky UX, Fonbnk chose to integrate Stellar into its application due to its low fees, fast speeds, anchor network, and seamless on/off ramps.
• To use Fonbnk, the user starts by downloading the app and registering an account. Once the wallet has been created, the user has several options in which to use MIN.
• To , users are directed to an airtime marketmaker link to initiate the transaction. They then fill out the amount of airtime they want to convert into MIN, preview the swap, receive confirmation from the marketmaker that the transaction is pending, and confirm the swap. Once the marketmaker approves the swap from their end, the wallet balance reflects the appropriate MIN amount in a matter of seconds.
• To , users will input how much MIN they want to convert into airtime and hit submit. Once confirmed, they will immediately receive a message from their telecom providers with the amount of airtime they received.