Why Cash Chat Got A Set back

After offering perfect financial services for 5 years, from 2016 until 2020 when a malicious policy was innacted by BOU.

Before 2016, financial transactions were next to impossible from one African country to another. It was not until Cash Chat’s wallet department pesamoni started offering bulky transactions across borders. Banks started moving money with ease among African countries. The service was also extended to private individuals through Boldcashers, which facilitated and still does facilitate cashless transactions among African countries.

In 2017, the company emerged as the fastest growing company in Africa. This most likely sent worrying signals to financial institutes in Uganda that are widely perceived as hindrances to prosperity. After connecting all Banks in Kenya to the Cash Chat wallet, In Uganda only 2 out of all banks in were open to direct integration with the Cash Chat wallet. At that time, only MTN mobile money supported withdraws. it was not possible to withdraw to Airtel.

The company went viral again in 2018 after launching another product, the cash chat App. While users were celebrating this great tech innovation, strategies were being laid in the background to cripple this emerging tech giant. Cash Chat which was also handling bulky transactions far beyond many financial institutions, evantually qualified for unified sabotage. A policy which has never existed in Kenya until this day was instantly drafted and enforced by BOU. This policy required Cash Chat to posses a 10 billion UGx certificate in order to operate as a financial service provider. The rating was based on the volume of monthly transactions. This meant that other existing service providers could pay as low as 15M Ugx since their monthly transaction volumes were low.

How MTN Got exposed During the Cash Chat setback

If you ask anyone using MTN how much they trust that platform, 99.4% today will definately assure you that they are using it, because it’s the only available option. The0.6% are the MTN employees who scheme how to steal their clients money. I gathered quite enough incidences of conivings in which people lost their money. This is what the National Payment Systems Act, 2020 (“NPS Act”) ushered in.

Companies like MTN used this opportunity to indefinately retain deposits made by Cash Chat clients from their MTN accounts. Those who attempted to get back their money were instructed to file suits being confident that Cash Chat would not present the 10 Billion shillings license.This seemed an attempt to tarnish the Cash Chat brand which had maintained integrity and customer trust for 5 years by then.

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