# PAGA Case: Namutek Kash From P2P App to Regional Payment Ecosystem ### PAGA Case: Namutek Kash From P2P App to Regional Payment Ecosystem ## Description Kash is a mobile application for peer-to-peer (P2P) money transfers, both domestically and internationally. It allows users to send and receive money in real time between different banks using debit cards, providing a fast, easy, and secure service. Namutek, Kash's parent company, is the first and only regional fintech company connecting all six Central American countries, providing real-time 24/7 transfers. In 2022, Kash introduced regional cross-border transfers, offering the same speed, security, and convenience as local transfers, with real-time 24/7 processing. These transfers are available to all verified Kash users with a registered and valid debit card, using the Visa Direct and Mastercard Send programs. Cross-border transactions include a small fee, which is shown to the sender before completing the transfer. Additionally, users can see how their local currency converts to the recipient's currency, thus guaranteeing complete transparency about fees and foreign exchange payments. Kash also offers a variety of features beyond traditional P2P transactions. Users can make transfers between their own accounts, pay and collect via QR code, request money, pay public services (in Costa Rica), receive microcredit deposits (in El Salvador), and make direct transfers to debit cards, particularly useful for recipients not registered with Kash. Non-registered users can receive funds if the sender provides the 16-digit debit card number along with the recipient’s name, ID, and phone number. Additionally, transfers can be made via WhatsApp without any fees. Kash also offers shareable proof of payment and 24/7 customer support for any issues. Kash is available on Apple App Store, Google Play and Huawei AppGallery, and users are required to complete a Know Your Customer (KYC) process for cross-border transfers, utilizing biometrics, morphology services, and micro deposit validation. All transactions, whether local or cross-border, undergo a background screening for both the sender and receiver, regardless of their registration status with Kash, ensuring the highest security standards through an API-based sanctions screening process. Although the app is currently limited to personal use, Kash’s unique value proposition has made it highly attractive to entrepreneurs and small business owners. Many have found value in using the app for their business activities, despite operating within the individual transaction limits. The Kash team is aware of this demand and is developing a pilot program in Guatemala to offer a platform that enables individual merchants to accept payments through Kash and even retain a percentage of VAT in the process. ### Year of introduction 2022 ### Territory Central America ### Impact Over time, Kash has grown its range of solutions, becoming an essential tool for users between 25 and 45 years old who are familiar with mobile technology and online banking. ### Key metrics Over 2 million downloads.Over 1 million monthly transactions. 150% growth in cross-border transactions from August 2023 to August 2024, with Costa Rica, Honduras and El Salvador being the top 3 senders. Over 100% year-over-year organic growth in user base. ## Lessons learned Over time, the Risk Management System for Money Laundering and Terrorist Financing (SARLAFT) Model or Methodology for risk analysis has matured, leading to more a robust implementation of each feature in the app. The KYC process has seen significant improvements, ensuring it meets the requirements for user identification and data collection for the respective regulatory reports in each country. Understanding the regulations of different countries has been critical to ensuring that the Central American service is compatible across all participating nations. Managing the requirements and demands of various audit teams across the six countries—both internal audits and regulatory bodies—has been challenging, requiring the preparation of detailed information to demonstrate Kash’s functionality and compliance.Best PracticesThe Namutek team develops in an agile-based model, with Scrum as framework, which enables faster development and release cycles, and takes feedback loops into consideration to fine-tune the application and processes. Additionally, the tech debt is managed as part of the ongoing software development lifecycle. In terms of security, the NIST and CIS frameworks were adopted, enabling proper handling and reduction of risks and threats. ## Public materials Con el apoyo de AWS, Namutek amplia su presencia en toda CentroaméricaYouTube - ¡Disfruta de todos los beneficios de Kash en tu emprendimiento!YouTube - ¡Tus transacciones seguras con Kash!YouTube - ¡Emprendedores felices con Kash!YouTube - Transfiere por WhatsApp con Kash fácil y rápidoYouTube - Transfiere por WhatsApp con Kash ## Submitters Daniel MoralesSr. Product Managerdamorales@namutek.com DisclaimerThe information and examples presented herein are provided for informational purposes only and do not represent the official position or views of the World Economic Forum or the IDB Lab. The World Economic Forum and the IDB Lab do not endorse, recommend, or advocate for the implementation of any specific practices, policies, or approaches described. Rather, this content simply showcases examples and perspectives shared by members of our PAGA Community.