With the BessPay Plugin, MSMEs will be able to receive payments instantly, in local currency, from anywhere in the world, enabling them to manage their finances better and reduce their exposure to currency fluctuations.

Micro, small, and medium enterprises (MSMEs) in emerging economies face significant barriers when it comes to accessing financial services. High transaction fees, slow settlement times, and limited support for local currencies make it difficult for these businesses to participate in global trade.

According to the World Bank, MSMEs employ over 70% of the workforce and contribute up to 35% of GDP in many emerging economies. However, cross-border payments remain a critical bottleneck, limiting MSMEs’ ability to access new markets and customers. For instance, high transaction fees can take up to 10% of their profit margins, making it a challenge for them to compete in the global market.

The impact of these barriers is significant. MSMEs are forced to rely on expensive and inefficient payment systems, which chip away at their profit margins and undermine their global competitiveness. Consequently, this limits their ability to grow and create jobs, perpetuating a cycle of poverty and inequality.

The Interledger Financial Services (DFS) Unlocked program has been supporting inventive projects that aim to increase financial inclusion and accessibility for MSMEs. The BessPay Plugin, which aims at integrating Interledger Open Payments into the Sharetribe marketplace platform, is one such project.

The BessPay Plugin harnesses the power of Interledger Open Payments at its core and leverages Sharetribe's no-code marketplace platform. This allows businesses to receive payments from global buyers, offering MSMEs across the Global South a streamlined payment experience. With the plugin, MSMEs can accept and send cross-border payments with lower costs, enjoy local currency support, and benefit from a no-code setup.

Payments can be received in the local currency of the MSME or a stable currency of their choice. The Plugin is designed to work with any Interledger-enabled wallet, such as the Chimoney or Interledger Wallets, providing MSMEs with flexible and convenient payout options directly from their chosen wallet.

The reduced transaction fees and settlement times will result in increased profitability and competitiveness in the global market for the MSMEs. The Plugin's focus on local currency support and flexible payout options will also help MSMEs better manage their finances and reduce their exposure to currency fluctuations.

The BessPay Plugin Project has made significant progress since its inception. The team has completed the technical architecture design, built BessPay API endpoints, and deployed MSME pilot research instruments to gather insights on payment needs and preferences. They have also formed partnerships with key stakeholders, including Journey Horizon, which is Sharetribe's premier implementation partner.

Following its successful demonstration at the ILF Summit in Mexico City on November 5, the Project Team is currently focused on validating design choices, testing technical integrations, and grounding the plugin in real MSME contexts. They are also conducting primary and secondary research to better understand the challenges MSMEs face, including the development of a mobile-ready template to support MSMEs who transact and operate primarily through mobile devices.

By making MSMEs more efficient, more organized, more viable, and better equipped to participate in digital and cross-border commerce, the Plugin also facilitates entrepreneurship as a practical employment pathway for young people. This is particularly critical given that the World Bank projects a global employment gap of more than 780 million unemployed youth over the next decade.

The BessPay Plugin Project exemplifies the potential of Interledger Open Payments to drive financial inclusion and accessibility for MSMEs in emerging economies. Its ability to streamline payments, reduce costs, and support local currency transactions represents a meaningful step forward for digital financial inclusion.