L-Pesa creates blockchain-based, smart contract loans enabling people across the internet to grow their businesses and become thriving entrepreneurs. Hopeful visionaries can take loans in Ether or Bitcoin and then participate in L-Pesa’s curated marketplace facilitating peer-to-peer lending: the first crypto loan service in Africa.
L-Pesa Microfinance is a fintech startup poised to take advantage of the fast-growing need for financial services in the developing world. The company has validated its operating model over the past 24 months and has built sophisticated technology, automating most of the operation. Its primary barrier to growth at this point is its ability to fund user acquisition and loans. The loss ratio on loans runs below 10% while return on loans is approximately 25%.
The idea for L-Pesa was incubated for a decade, and the business was launched at the time four important market forces converged to allow for rapid scaling:
Big Data, Artificial Intelligence, and Blockchain
New tools allow for storage of vast amounts of data and extensive data analysis at a fraction of the cost from just a few years ago. Advancements in artificial intelligence provide new opportunities for automated loan underwriting.
Blockchain technology allows for faster, safer, and less expensive exchange of value. Blockchain technology has just started to revolutionize financial services and will lead to enormous efficiencies over the next ten years – blockchain has been described as the internet of money and will do to financial services was the internet did for information and commerce.
Alternative Credit Data
L-Pesa has developed a unique, proprietary credit scoring model based on user behavior combined with traditional and alternative credit data. L-Pesa competitors have developed their own proprietary models. Experience over the next decade will lead to revised best practices, which will eventually become industry standards.
The rise of the mobile phone over the past two decades has been one of the most profound technological and market shifts in human history. A large majority of humankind now owns a mobile phone, and many own smartphones. Mobile financial services such as M-Pesa have become available in many countries and support both the banked as well as the unbanked population. Based on the market penetration of mobile phones (smartphones and feature phones), mobile money services such as M-Pesa, Tigo Pesa, and Paytm have grown very quickly and have enabled L-Pesa.
Traditional microfinance has relied on a large network of branches since identity verification has been impossible online and difficult in person. India’s Aadhaar biometric ID system is leading the world and has enrolled >99% of India’s 1.2 billion citizens. Other countries are expected to follow India’s successful implementation. Biometric ID will result in dramatically reduced cost and the ability to provide financial services without a physical branch network.
Token name: KRIPTON
Token ticker: LPK
Token owner: L-P Kripton ltd., Suite 2B, 143 Main Street, Gibraltar GX111AA.
Company Number: 116865 REID Number: GICO.116865-49
Token type: Ethereum ERC20
Total tokens issued: Maximum total of 2,600,000,000. Final number of tokens created will be calculated according to final amount of contributions. The final number will be published by the end of the ICO. Mining: There shall be no mining or other means to increase the token amount, save a second ICO in the future.
Read more: whitepaper