Crypto is useless unless you are a freelancer in Africa who needs to get paid globally and spend locally.
The African gig economy is booming, with freelancers, creatives, and digital entrepreneurs forming a vibrant part of the continent’s workforce. Gig platforms have become essential for connecting workers to global opportunities. However, payments remain a significant challenge.
The Problem
According to a 2023 Mastercard report, the gig economy in Africa is projected to grow by over 17% annually, yet accessing global payments remains a barrier for many freelancers and creatives.
Existing global payment systems like PayPal and Payoneer charge high fees - sometimes up to 15% of value lost in fees and FX charges on small transactions. Coupled with long settlement times and currency volatility, many gig workers find themselves losing significant portions of their hard-earned income.
For instance, a graphic designer in Nairobi working with a client in New York may earn $200 for a project. When the funds are processed and converted to local currency, they could lose as much as $30 to fees, and even more to fluctuating exchange rates. This leaves many gig workers in a precarious financial position, unable to save, budget, or invest.
Enter Payd
Payd was built to solve these challenges. As a global payment and financial management platform tailored for freelancers and creatives, Payd is focused on breaking down barriers for gig workers in Africa.
Leveraging the Celo blockchain and stablecoins issued by Mento Labs, Payd offers a seamless solution for receiving and managing payments globally and spending locally.
Here’s how Payd is transforming the landscape:
1. Access to Global Payments
Payd enables freelancers to receive payments in USD and EUR settled directly into their wallets in stablecoins like cUSD and cEUR. These funds can then be seamlessly converted to local stablecoins such as cKES for spending in local economies. Payd handles the onramp and offramp at both payment and payout points to ensure a seamless transaction flow for both the Payd user and their clients.
2. Multi-Currency Wallets
Payd’s wallets allow users to hold, swap, and spend in multiple currencies. Whether you’re saving in USD for a big goal or paying local bills in KES, the flexibility ensures gig workers can manage their finances effectively. This is made possible through Mento stablecoins on Celo.
3. Payment Links and Shops
Freelancers and creatives can create customizable payment links and storefronts, making it easier for clients to pay them globally. Whether you’re a creative selling digital art or a writer collecting payments for articles, Payd makes transactions effortless.
4. Financial Management Tools
Beyond payments, Payd empowers users with tools to track their income and spending. Aggregating this data allows freelancers to budget better, set saving goals, and plan their finances - turning gig work into a sustainable livelihood.
Powered by Celo and Mento Labs
Celo’s blockchain infrastructure provides the backbone for Payd. Its mobile-first approach and low transaction costs make it ideal for gig workers in emerging markets.
Through its partnership with Mento Labs, Payd offers stablecoins like cUSD, cEUR, and cKES as alternatives to fiat currencies to enable them to save in a stable currency and transact across borders with minimal friction.
Future Plans
Payd isn’t stopping at payments. Here’s what’s next:
- Credit Access: Using transaction data, Payd aims to offer freelancers and creatives access to microloans, enabling them to invest in equipment, training, or expand their businesses.
- Virtual Dollar Accounts: Providing freelancers and creatives in emerging markets with named dollar accounts to enable them receive payments from gig platforms like Upwork and Fiverr, settled instantly in stablecoins.
- Interest Savings: By introducing interest-bearing wallets, freelancers will be able to grow their savings while keeping funds secure in stablecoins.
- Insurance and Pension: Freelancers often miss out on essential financial services like health insurance and retirement savings. Payd plans to fill this gap by integrating insurance products and long-term savings options.
Why It Matters
By banking the gig economy on Celo, Payd is unlocking financial freedom for millions of freelancers and creatives across Africa. It’s not just about payments - it’s about empowering a generation of gig workers to thrive in a global economy.
Over the past year, we have enabled over 15k freelancers and creatives to transact about $500k in value in Kenya alone. The future of work is gig work - and the future of payments is on-chain.
If you’d like to chat about what we are building at Payd, reach out to us on hi@paydhq.com.