Lipisha is a Kenyan company that uses various platforms to automate mobile payments, allowing businesses to collect, process and integrate payments from customers and clients using mobile money. One of these platforms was Safaricom’s M-Pesa, at least until November 12th, when Lipisha’s access to the platform was cut off.
The termination was carried out without notice, prompting Lipisha to take Safaricom to court. Certifying the matter as urgent, High Court Judge Joseph Onguto added that Safaricom would have to provide grounds for this termination.
The Lipisha Consortium suit included Bitpesa, Lipisha’s largest enterprise client, who was joined as a co-plaintiff. The two firms blamed Safaricom for using its monopoly on the mobile money industry to intimidate Lipisha into ceasing its services on M-Pesa. Particularly affected is Bitpesa, which is a bitcoin trading platform. On Bitpesa, users can convert bitcoin into Kenya Shillings and use the M-Pesa platform to send this money to any user with an account.
Safaricom has been sued for allegedly using intimidation to suspend the two firms’ services. In order to continue using the M-Pesa platform, Lipisha would have to agree to Safaricom’s terms and conditions, which require them to use the M-Pesa API instead of their custom API to process automated payments.
Bitpesa is one of Lipisha’s largest customers, and as such they are no longer able to process payments through M-Pesa. Speaking to the Daily Nation, Mr Kiragu Kimani, lawyer for the firms, said that cutting Lipisha off is not only illegal, but is also creating grave strain on Bitpesa’s business. According to Kimani, if Safaricom does not restore Lipisha’s access privileges, thousands of customers will be inconvenienced.
“The suspension of the Lipisha services and the demand that Lipisha stops transacting with Bitpesa is unlawful and infringes on the firms’ rights to acquire and own property, fair administration as well as their economic interests,” Mr Kimani said.
Lipisha alleges that Safaricom suspended its services and demanded that the firm produces its licence from Central Bank on the assumption that it trades in Bitcoin. The cryptocurrency is not illegal in Kenya, but it is also not recognized either.
Lipisha was established in 2011, two years before Safaricom’s Lipa Na M-Pesa service. It uses a variety of platforms to process payments, including Visa, Mastercard and Airtel Money, enabling customers to pay for goods and services internationally. It also allows business owners to quickly receive and process mobile payments through simplified mobile and tablet applications.
There appears to be at least one party to the proceedings who isn’t complaining though. Since the Lipisha/Safaricom dispute began, LocalBitcoins, a local currency to bitcoin trader has doubled its Kenya Shilling transaction volumes, suggesting that Bitpesa’s loss is their gain, with daily amounts traded approaching 3 million shillings.
Lipisha Consortium’s application against Safaricom’s action to terminate their access to the M-Pesa platform was heard in Nairobi’s Milimani Law Courts. The hearing commencing on the 24th of November, 2015. The date for determination as to whether or not Safaricom’s action was justified will be communicated.
We have reached out to the concerned parties for comment.
0 comments:
Post a Comment