Bank of Ghana has cited Spektra Technologies, owners of digital payments platform, Dash App, for operating illegally and ordered them to stop operations with immediate effect.
In a letter dated March 9, 2022, signed by Head of Fintech and Innovation at BoG, Kwame A. Oppong, addressed to the CEO of Spektra Technologies, the central bank said it had come to their notice that through the Dash App, Spektra Technologies was offering services like Wallet Creation, Cross Border Payment, Holding of Float Balance as well as Bill and Utility Payment without the requisite approval.
The letter said “Payment Service Providers are required to obtain the appropriate regulatory approval from the Bank of Ghana under Section 7 (1) of the Payment Systems and Services Act, 2019, (Act 987) prior to operating a payment service in Ghana.”
The central bank therefore directed the company to “cease offering the above payment services with immediate effect” until the obtain the appropriate approval from the BoG.
The BoG also reminded the company that “offering payment services in the country without a license is an offense under Section 9 (1) of Act 987.
This comes just days after news broke that Spektra Technologies had raised some US$32.8 million funding to build connected wallets in Africa.
Dash has been operating in Ghana since 2019, connecting digital wallets across networks to facilitate payments both locally and across borders.
Meanwhile, all other Fintech companies that work with Dash have also been ordered to pull the plugs on the company until further notice.
Other defaulting Fintechs
Meanwhile, there are other Fintech companies operating in Ghana without the requisite approval from the BoG and yet they are doing brisk business and driving financial inclusion.
Quite a number of these young Fintech companies do not have the funds to meet the regulatory fees but they have innovating ideas to drive financial inclusion so they are forced to hide in the shadows on licensed entities and operate until they have money to pay for the licenses/approvals.
It is not clear if Dash was one of those, but there are quite of number of players like that in the system. The BoG has recently launched a sandbox where young innovators like that can plug and play, but according to some your Fintechs, the rules of engagement in the sandbox make it very difficult for them to get in.