PrivPay Closes Operations Following Safaricom’s API Access Termination Due to Compliance Issues
- PrivPay, a Kenyan fintech, shut down after Safaricom revoked its access to M-PESA APIs due to compliance concerns.
- Safaricom stated that PrivPay violated Kenya's Anti-Money Laundering regulations.
- PrivPay claimed to have a user base of 30,000 and emphasized its meticulous transaction records.
The shutdown of PrivPay highlights the challenges fintech companies face in navigating compliance regulations. While PrivPay emphasized its commitment to privacy and transaction records, Safaricom's decision to revoke access to M-PESA APIs and require a PSP license indicates a lack of alignment between the fintech and regulatory requirements. This case underscores the importance for fintech startups to proactively engage with regulators and ensure compliance from the early stages of their operations.
