ChamaPay is a mobile app designed to simplify and enhance rotary saving, enabling users to create and manage group savings (chamas) effortlessly.
Rotary saving - whereby people form a group(known as chama in EastAfrica) agree on a fixed amount of money and a cycle time (e.g 2 weeks). After the cycle time, each member is required to have contributed/given the fixed amount, the money is pooled together and given to each member in a rotational manner.
The traditional rotary saving group has the following challenges;
- Trust and geographical limitations :- Participants need to know and trust each other which restricts groups to familiar cycles such as work places and local communities limiting the reach of the saving groups.
- Complex management requirement :- Managing a rotary saving group involves substantial administrative effort. Organizers must keep track of individual contributions, ensure timely payments, and decide who receives the payout in each cycle, often relying on manual record-keeping and coordination.
With ChamaPay, a digital rotary saving platform, users benefit with;
- Access to Diverse Chamas: Users can explore and join a variety of public chamas, providing the freedom to participate in savings groups beyond their immediate circle, without geographical limitations.
- Automated Management: The platform simplifies management by automatically tracking contributions and crediting members’ accounts when it’s their turn to receive funds, eliminating the need for manual record-keeping and oversight.
- Flexible Group Creation: Users can create both private chamas (for family and friends) and public chamas, allowing for tailored group savings experiences suited to different needs and levels of familiarity.
ChamaPay Features
=> Chama Creation: Users can create their own chamas, choosing between a public chama (open to all users) or a private chama (restricted to invited members).
=> Joining Chamas: Users have the flexibility to join any number of public chamas they choose. To join a private chama, users need a direct link and must receive approval from the chama’s admin.
=>Interactive Section: Each chama includes an interactive chat section, allowing members to communicate, share updates, and discuss topics directly within the platform, enhancing collaboration and group engagement.
ChamaPay security measures
- Stablecoin Implementation: ChamaPay uses the cKES stablecoin, which is pegged to the Kenyan shilling, to protect users from cryptocurrency volatility and ensure consistent value in savings and payouts.
- Public Chama Safeguard: In public chamas, each member is required to lock an amount equal to the chama’s contribution amount. This locked amount can be used to cover the member’s share in case they default on a payment, ensuring that the chama’s payout structure remains secure.
- Private Chama Access Control: For private chamas, users need a direct link and admin approval to join, maintaining privacy and group integrity by allowing only selected participants.
- Non-Contribution on Payout Date: If, on the payout date, any member has not contributed their required amount, all contributing members are automatically refunded to their wallets. This measure protects contributors and maintains fairness in payout timing.