InvoiceMate Showcases Utility in Islamic Finance at Blockchain Summit in India
BSV Blockchain sponsored its recently concluded blockchain summit in India, and among the presenters is Muhammad Anjum, Chief Mate and Founder of InvoiceMate, who feels that blockchain technology can revolutionize a wide range of invoicing challenges.
Taking Invoicing to New Heights
Anjum’s company is an invoice management solution that manages everything from invoice creation through customer settlement and documentation. Anjum voiced concerns regarding invoice duplication, loss or destruction, flaws in the review and approval systems, and a high rate of fraud, leading huge financial institutions to shun invoice financing.
To address these issues, InvoiceMate encrypts the whole invoice process, from generation through payment and financing. Non-fungible tokens (NFTs) assign a unique digital fingerprint at each stage of the invoice journey, which is subsequently recorded on the BSV blockchain.
The startup eventually formed a partnership with the Saudi Agricultural and Livestock Investment Company (SALIC) to improve invoicing and other functions. Following his presentation at the blockchain summit, Anjum noted that InvoiceMate reduced SALIC’s accounting staff workload by 50%.
InvoiceMate has spent the previous year concentrating on commercial clients, most of whom are major corporations. Their most recent initiative is to install InvoiceMate for two large-scale manufacturers. InvoiceMate has also developed a plug-and-play lite version for its retail clients that anybody can access through an app.
It has even integrated Know-Your-Invoice (KYI) to meet Anti-Money Laundering (AML) regulations. “This helps the banks to do their Due Diligence in a very effective way and get an immutable source of truth, the actual journey of the invoices,” Anjum stated.
KYI assists customers at risk profiling their clients while also preventing fraud. Because blockchain is an immutable ledger that records all transactions in chronological order, it is simple to retrieve all invoicing and payment records associated with a user. KYI also provides users with real-time transaction settlement and tracking, as well as process automation, which also makes the process paperless, further reducing expenses.
Abiding by the Shariah Law
Anjum insists he is “not using blockchain for the sake of blockchain,” but because its capabilities are suitable for the specific demands of invoicing. What sealed the deal is the extremely low transaction fees and the potential of making these fees predictable to his clients through a cooperation with TAAL Distributed Information Technologies Inc.
TAAL is built on the BSV Blockchain, the largest public blockchain that can scale limitlessly. Because of its scalability, data block sizes and throughput, as measured in transactions per second (tps), can be increased on demand, while fees are lowered to mere tiny fractions of a penny.
The BSV Blockchain has already reached a milestone of completing over 10 million transactions in a single day at 4GB blocks, with average fees of 1/20 to 1/100 of a penny. In the future, this can be increased to terabyte-sized blocks and millions of tps at fees of 1/1,000 of a cent. This scalability is what allows for TAAL to create an effective partnership with InvoiceMate.
Under the partnership, TAAL will sell a specific number of transactions at a predetermined fee or over a set period, guaranteeing InvoiceMate clients with cost certainty when they subscribe to the service. Besides this, they also aim to serve as a link between traditional enterprises and Islamic invoice financing.
Anjum mentioned Islamic Finance (IF) as a potentially profitable sector that is rapidly growing and is now practiced in at least 120 countries. It is concerned with whether the ecosystem adheres to Islamic values.
Bitcoin creator Dr. Craig S. Wright had some understanding of IF before inventing Bitcoin. While some assume that IF only outlaws interest rates and usury, it is also a system that does not develop wealth under capital and wherein compliance requires a two-tier auditing procedure. The first is a standard audit, and the second is a Shariah or Islamic compliance audit.
BSV blockchain’s smart contracts allow for automated compliance with IF systems, improving efficiency, cutting expenses, and minimizing counterparty risk. The BSV blockchain is immutable and traceable, with a convenient time-stamping function that provides merchants with papers required for a Shariah audit/review process—all while preventing fraud.
On top of invoicing management, InvoiceMate is building an ecosystem to provide liquidity to small and medium-sized enterprises (SMEs) that cannot secure financing from regular banks while still being Shariah compliant. InvoiceMate also allows customers to get invoice financing from the digital asset industry, giving them access to a $1 trillion market outside of the traditional banking system.
Anjum plans to launch a complete accounting system powered by the BSV blockchain by the third quarter of this year, followed by a fully on-chain enterprise resource planning (ERP) software business at the end of 2023.
Through the blockchain summit, InvoiceMate was able to educate the attendees about the utility of a scalable blockchain that allows platforms to become relevant to niche markets such as IF.