In many emerging economies, traditional banking services remain inaccessible to large segments of the population due to high costs, stringent requirements, or underdeveloped infrastructure. This forces individuals and small businesses to rely on cash transactions or informal financial systems, which are inefficient and insecure. One way to address this gap could be by embedding financial services—such as payments, lending, and insurance—into apps that people already use daily, like messaging platforms, e-commerce sites, or utility services.

How It Could Work

The idea involves creating a middleware platform that allows non-financial apps to integrate financial functionalities seamlessly. Instead of building their own banking infrastructure, apps could use APIs to offer services like peer-to-peer payments, microloans, or instant payouts. For example:

• A messaging app could let users send money to contacts instantly.
• An e-commerce platform could offer "buy now, pay later" options for unbanked customers.
• A ride-hailing app could provide drivers with daily payouts instead of weekly bank transfers.

The platform would leverage local payment methods (e.g., mobile money, UPI) and partner with regional banks or fintechs to ensure compliance and scalability.

Stakeholder Benefits and Incentives

This approach could create value for multiple parties:

• Consumers gain access to low-cost, convenient financial tools without needing a traditional bank account.
• Small businesses can accept digital payments, access credit, and manage cash flow more efficiently.
• App developers could increase user engagement and unlock new revenue streams through transaction fees or revenue-sharing models.
• Financial partners (banks, fintechs) would expand their customer base without direct acquisition costs.

Execution and Challenges

A possible starting point could be partnering with a few high-engagement apps in a single emerging market to test basic payment functionality. Regulatory compliance would be critical, requiring early engagement with local authorities and licensed payment providers. Challenges like fragmented regulations or low trust in digital payments could be addressed through localized solutions, user education, and partnerships with trusted brands.

Compared to existing solutions like Stripe or M-Pesa, this approach differs by focusing on embedding finance directly into apps that underserved populations already use, rather than requiring separate financial apps or relying on traditional banking infrastructure.