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PrivPay Shutdown: A Case Study on a Single Point of Failure

PrivPay logo

January 18, 2025

PrivPay logo

PrivPay was a Kenyan startup founded in 2022 by Siri Yangu Ltd., which provides data protection solutions for its users. PrivPay granted its customers anonymity during M-PESA transactions. This idea of data privacy appealed to customers, as their details shared with merchants were eventually used in marketing.

PrivPay’s Vision

Sandra Mbuvi, a product manager at Siri Yangu, highlighted the impact PrivPay was poised to create on Kenya’s fintech space.

“In instances where one doesn’t have cash on them and is reluctant to send money because they’re uncomfortable sharing their name or phone number with the recipient, PrivPay comes in handy to help send money privately via M-PESA. With the growing interest in consumer and data protection solutions in Kenya, I believe this is such a timely innovation that will resonate with many who are keen on data privacy and safety, especially in mobile money transfers.”

PrivPay and M-PESA

To provide anonymity, PrivPay accessed Safaricom’s database, which housed M-PESA’s payment API, Daraja. PrivPay used this API at no cost to conduct mobile money transactions. PrivPay set up its application for Android and Apple devices. An investigation conducted by Business Daily disclosed that M-PESA transfers came with an additional charge on the PrivPay app. Successful transactions were confirmed, with two notifications sent to the sender: one from PrivPay and another from M-PESA.

It further revealed that the platform targeted charity and donations and favoured anonymous payments. PrivPay’s services were exclusive to M-PESA users, but it planned to expand to Airtel Money and T-Kash. From inception to date, PrivPay has no publicly disclosed funding rounds, investments, mergers, or acquisitions.

What led to PrivPay’s Abrupt Sunset?