Edupay
Stable coin payments for education institutions
Created on 16th May 2025
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Edupay
Stable coin payments for education institutions
The problem Edupay solves
Payment Collection Inefficiency
Educational institutions in Kenya struggle with inefficient fee collection systems, resulting in long queues during payment periods, high bounce rates on checks, and administrative overhead tracking payments. Edupay eliminates these inefficiencies with instant, verifiable blockchain-based payments.
Currency Volatility Risk
Schools and universities face significant currency risk from the fluctuating Kenyan Shilling. By integrating USDC stablecoin payments, Edupay allows institutions to maintain reserves in dollar-pegged assets, protecting operational budgets from local currency depreciation.
International Student Payment Friction
Foreign students currently face high fees (5-7%) and significant delays (3-5 business days) when sending tuition payments through traditional banking channels. Edupay enables near-instant cross-border payments with minimal fees.
Limited Financial Transparency
Schools often struggle with payment reconciliation and financial reporting. Edupay provides immutable blockchain records of all transactions, reducing payment disputes and improving accounting accuracy.
Financial Inclusion Barriers
Many parents and guardians lack access to traditional banking but have M-Pesa. Edupay bridges this gap by allowing fee payments via M-Pesa that get converted to USDC on-chain, bringing blockchain benefits to the unbanked while maintaining familiar payment methods.
Challenges I ran into
M-Pesa API Integration Complexity
Integrating M-Pesa's Daraja API with blockchain transactions proved challenging due to the fundamentally different architectures. I overcame this by developing a middleware layer that handles the asynchronous nature of blockchain confirmations while providing immediate feedback to users through a transaction queueing system.
Cross-Currency Settlement Timing
Ensuring that exchange rates between KES and USDC remained fair during periods of high volatility was difficult. I implemented a time-locked price oracle solution that provides a 15-minute settlement window with transparent rate displays, giving users confidence in the exchange process.
KYC/AML Compliance While Preserving Privacy
Balancing regulatory requirements with user privacy presented significant challenges. I addressed this by implementing a zero-knowledge proof system for identity verification that allows institutions to confirm student identities without storing sensitive personal data on-chain.
User Experience for Blockchain Newcomers
Educational institutions and parents unfamiliar with blockchain technology struggled with concepts like wallet management and gas fees. I simplified the experience by creating an abstraction layer that handles wallet creation through email/phone verification and implemented meta-transactions to shield users from dealing with gas fees directly.
Smart Contract Security for Financial Transactions
Developing secure payment systems that handle education funds required rigorous security measures. I addressed this by implementing a comprehensive testing suite, conducting multiple audit rounds through community review, and implementing circuit breakers for emergency situations to protect user funds.
Tracks Applied (1)
Stablecoins
Technologies used
Cheer Project
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