The Interledger Foundation (ILF) and Wallet Guru have announced their collaboration to create a new payment model for services like telecommunications, utilities, and entertainment. Traditionally, many Latin American consumers have accessed these services through prepaid models.

The new initiative aims to offer a real-time payment option, enabling customers to pay directly from their digital wallets to service providers. This approach is expected to reduce the high fees associated with prepaid systems and allow consumers to pay only for the exact amount of services they use. Prepaid subscriptions dominate the market for essential services in Latin America, largely due to their accessibility without requiring a bank account or credit card.

However, these models come with increased complexity, including reliance on physical cards that can be lost or stolen and higher processing fees. For the 72% of Latin Americans without credit cards, prepaid models are often one of the few payment options available. In some countries, hyperinflation has further complicated this issue by drastically reducing credit limits, limiting even credit card holders’ ability to cover basic expenses.

Interledger Foundation and Wallet Guru aim to address these challenges by developing a pay-as-you-go system. This system will include a consumer-facing digital wallet and a business-facing platform, enabling real-time payments for the exact amount of services used. The solution will operate on the Interledger Foundation's Interledger Protocol (ILP), allowing consumers to pay with any traditional or digital currency without needing a bank account.

Businesses will benefit from immediate payments without the burden of additional fees or the risk of non-payment. Launching Pay-as-You-Go payments for streaming services The first implementation of this system will be with an entertainment streaming company, allowing users to make real-time payments for content based on consumption. After logging into the platform, customers will be able to link their Wallet Guru by scanning a QR code and paying as they watch.

This marks the beginning of Wallet Guru's expansion of the pay-as-you-go model across North and South America. As part of the Interledger Foundation network, Wallet Guru joins other organisations like Mexico’s Peoples Clearinghouse and Canada’s Chimoney, working towards the global deployment of interoperable payment solutions. .