Bank of Ghana has ordered Spektra Technologies, owners of Dash App, to cease operations after the payment software provider raised $32.8 million in oversubscribed seed to expand operations.
The investment is to help digital payment networks across Africa interoperate and to aid it develop Mastercard and Visa-style intermediary services for mobile payment wallets across the continent.
But a letter dated March 9, 2022, from the Bank of Ghana (BoG), ordered Specktra Technologies to cease operating its Dash App, the payment platform service, due to lack of regulatory approval from the central bank.
All other Fintech companies that deal with Dash App have also been directed to halt operations until regulatory approval is granted.
The central bank said in the letter that it had come to its attention that through the Dash App, Spektra Technologies was offering services such as Wallet Creation, Cross Border Payment, Holding of Float Balance, as well as Bill and Utility Payments without the requisite approval.
The Head of Fintech and Innovation at the Bank of Ghana, Kwame Oppong, said in an interview that the move was to protect consumers and to keep the system safe.
“We have consumers to protect and a sector to keep safer to ensure that consumers are protected”, he 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,” he added.
The BoG also reminded the company that “offering payment services in the country without a license is an offence under Section 9 (1) of Act 987.
Dash App, which has been operating in Ghana since 2019, was founded by Prince Boakye Boampong to connect digital wallets across networks to facilitate payments both locally and across borders.
At the moment, Dash has integrated six wallets of the said +200 wallets. The six have been completed in Kenya and Ghana.
Dash said that its approach was borrowed from the likes of AliPay, but was original in its own way; it was building value-added services on top of the product.