Union54: A New Card Scheme in the Making
In an effort to revolutionize the payment industry, a new card scheme is being developed by Union54. The company, founded by Perseus Mlambo, aims to create a domestic and continental debit card that will shorten settlement time and integrate more local payments native to the region.
A Brief History of Union54
Union54 was founded in 2020 with the goal of positioning Zambia as the city on the hill for African interests. The company has since hosted two conferences, African Renaissance Conference (ARC) 2020 and ARC 2022, which brought together central banks and other stakeholders to discuss the potential for a new card scheme.
The Challenges Facing Union54
Developing a new card scheme is not without its challenges. One of the main obstacles facing Union54 is building trust with merchants and consumers. The company plans to get nine central banks to establish a framework by the end of the year, with a pilot launch in Q2 2023.
Technical vs. Trust Problem
According to Mlambo, developing a card scheme is not just a technical problem, but also a trust problem. "The card is a physical manifestation of that trust," he said. "By going through Central Banks, we want to understand and agree on a common framework for the paperwork that documents that cements that trust."
Impact of a New Card Scheme
While the impact of a new card scheme is still theorized at best, Mlambo believes that it can shorten settlement time and integrate more local payments native to the region. "If we can reach an agreement with participating central banks and issue our own domestic and continental debit card," he said, "we believe that this will have a significant impact on the payment industry in Africa."
Partnerships and Support
Union54 has received support from several partners, including Y Combinator, which provided funding for the company. Mlambo has also been in touch with three central banks keen to explore how settlement agreements would work with a new card scheme.
Conclusion
The development of a new card scheme by Union54 is an exciting and ambitious project that aims to revolutionize the payment industry in Africa. With its focus on building trust and integrating local payments, Union54 has the potential to make a significant impact on the continent.
Key Takeaways:
- Union54 is developing a new card scheme that will shorten settlement time and integrate more local payments native to the region.
- The company faces challenges in building trust with merchants and consumers, but plans to establish a framework with nine central banks by the end of the year.
- Union54 has received support from several partners, including Y Combinator.
Future Developments:
The development of the new card scheme will be an ongoing process that will require collaboration between multiple stakeholders. As the project progresses, it is likely that more information about the timeline and details of the launch will become available.
Additional Resources:
For those interested in learning more about Union54 and its efforts to develop a new card scheme, there are several resources available:
- Union54’s website: Provides an overview of the company and its mission.
- African Renaissance Conference: Hosts conferences that bring together central banks and other stakeholders to discuss the potential for a new card scheme.
Disclaimer:
This article is not intended to be taken as investment advice. The information provided is for informational purposes only and should not be relied upon for making investment decisions.
The payment industry in Africa is constantly evolving, with new technologies and innovations emerging regularly. Union54’s efforts to develop a new card scheme are an exciting development that could potentially have a significant impact on the continent.
Related Topics:
- Fintech
- Payment cards
- Africa
This article provides a brief overview of the company’s plans and ambitions, but for more information, please visit their website or attend one of their conferences.
