Can Jambo's Android Web3 phone, which claims to target emerging markets, truly promote financial inclusion?

Some people choose to have two smartphones with two different numbers for different purposes. One phone is used for live streaming, watching shows, gaming, photography, or work, while the other is for personal contacts and social media. However, for most consumers, purchasing a new smartphone now requires careful consideration. According to Statista Global Smartphone Sales data, global smartphone sales are expected to drop to 1.34 billion units in 2023, the lowest in nearly five years, almost the same as the 1.35 billion units sold during the pandemic in 2020.

The Global Smartphone Market Tracking Report for the second quarter of this year reveals the top five smartphone brands in terms of shipment volume, market share, and growth rate are Samsung, Apple, Xiaomi, Vivo, and OPPO. Among the top five, only Apple uses the iOS system, while the other four use the Android system. Apple's smartphone sales and reputation have significantly declined this year, allowing Samsung to take the lead with an 18.9% market share. Despite the saturated and fatigued smartphone market, low-end and low-priced phones are growing against the trend. China produces a large number of low-end, low-priced phones, gradually awakening consumers who used to be obsessed with changing phones every year. These phones do not need many functions; being cheap and meeting basic needs is sufficient.

For those who only use their phones for investment and financial management, having a phone that allows them to check the market and make instant payments is sufficient. At this point, purchasing a "second phone" becomes necessary for consumers.

Coinbase Ventures, OKX Ventures, Three Arrows Capital, Delphi Ventures, Alameda Research, and Polygon Studios have all invested in a blockchain phone startup called Jambo. Jambo, which has just been established, has raised $7.5 million in seed funding from so many VCs, sparking curiosity about what makes this phone special.

At first glance, the Jambo Phone's design looks like a typical Xiaomi or Samsung phone, with a low price. Currently priced at only $99, the phone service reportedly covers over 100 countries, with sales exceeding 500,000 units. Through the phone sales, it has attracted 2 million new users to create cryptocurrency wallets. Jambo's co-founder, James Zheng, is a third-generation Chinese-African immigrant, a graduate of New York University's Computer Science program. He wanted to develop a phone that combines payment with various games and applications, similar to WeChat, with multiple functions. The primary markets targeted are developing countries, Southeast Asian countries, India, Indonesia, and Africa.

Web 3 Game Experience Course on African Campuses

Jambo Mobile launches "Web3 Enlightenment Game Education Course," targeting students in its initial marketing strategy. According to a report by Coindesk, Jambo offers Web 3 courses in 15 African countries, including the Democratic Republic of the Congo, South Africa, Nigeria, and Ethiopia, allowing students to learn about Web 3 through gaming experiences. Jambo is introducing the gaming token economy to Africa by producing mobile phones and providing educational courses, enabling students to start familiarizing themselves with blockchain technology.

Mobile Built-in Exchange App and Self-Custody Wallet

OKX announced a partnership with Jambo to integrate Web 3 and mobile applications to attract new users. The OKX app on the Jambo Phone allows users to trade and establish a cloud-based self-custody Web 3 wallet function with the Android system of Jambo. The strategic collaboration between Jambo and OKX aims to enter emerging markets and countries without banking systems and financial institutions.

Upgrade to Octa-Core Processor for Enhanced Entertainment Experience

Jambo Phone utilizes an Octa-Core Processor, supporting Tiktok live streaming and Matr1x Fire games. Live streamers and gamers can use the Jambo Phone for online streaming and gaming, providing better performance in entertainment.

Web3 Not the Best Solution for Inclusive Finance; Potential Increase in Money Laundering

Despite many developed countries having high expectations for Web3 adoption in developing countries, in the case of several African nations, limited internet infrastructure and low consumption levels make non-smartphone applications more prevalent. Inclusive financial means such as M-Pesa only require SMS for financial transactions like remittances, transfers, and payments. Companies partnering with local banks in Kenya can even offer additional services like interest-bearing accounts, loans, and insurance on M-Pesa.

On the contrary, due to low regulatory intensity in Africa, it has become a haven for cryptocurrency money laundering. Reports from the United Nations and South African Law Journal have highlighted the severity of cryptocurrency money laundering in Africa.

Furthermore, apart from criminal issues, blockchain startups should reconsider their initial intentions and evaluate whether these solutions truly address the "inclusive finance" problem.