A conceptual secure blockchain based settlement and clearing house for mobile financial services in Zambia

Developing Countries in Africa in general and Zambia in particular, have seen a rapid rise in the use of mobile payment platforms. This has not only revolutionized access to financial services for the poor but also allowed them access to other financial products such as savings or insurance. With a growing number of mobile money providers in Zambia, the need for a solution that provides for end-to-end account-to-account interoperability has become ever more apparent. In this study, we first reviewed the technical landscape and features of mobile payment systems in Zambia and then assessed the feasibility of using blockchain technology in proposing a settlement and clearing system that would facilitate mobile money interoperability. A prototype system was then designed in which amounts being interchanged between providers are managed as assets on a permissioned blockchain. In the end, the study concluded that mobile money interoperability settlement is a valid use case for a permissioned blockchain technology and that it was an ideal solution approach rather than the traditional central processing database systems because of the desirable security features that it provides. The study also brought about key lessons in the practical implementation of blockchain technology other than the much-publicised cryptocurrency. Keywords: Blockchain, Blockchain Security, Mobile Money Interoperability, Payments, Clearing and Settlement Systems