In Syria, a fintech application named ShamCash is becoming an increasingly integral part of the financial landscape, stepping in to address a severe liquidity crisis. However, its rapid adoption is shadowed by significant concerns regarding its legal standing, operational capacity, and user data security, painting a complex picture for its users and the broader ecosystem.
A Double-Edged Sword in the Market
User experiences with ShamCash are notably varied. For some businesses, the app has become a vital tool. The manager of a money exchange company in Damascus and Aleppo, who chose to remain anonymous, noted that his firm relies on the app, stating it plays a “good role in the current phase.” He explained that while transfers in Syrian pounds incur fees, dollar transfers are currently free, though this is expected to change. He also highlighted the app’s ability to handle large sums, but pointed out an emerging unofficial market where offices charge illegal commissions of 1-2% to facilitate transactions when facing their own liquidity shortages.
Conversely, adoption remains limited in other sectors. An employee at a Damascus shipping company mentioned that his firm has not created a ShamCash account, preferring bank transfers for its international dealings—a service the app does not support. He added that while some clients insist on using ShamCash, these transactions are handled through a personal employee account, indicating that demand is still not widespread despite the app’s services for bill payments and government fees.
Operational Limits and Regulatory Scrutiny
According to researcher Younis Al-Karim, director of the Al-Eqtisadi platform, ShamCash’s growth is a direct consequence of the country’s cash shortage, making it a “semi-mandatory alternative” for daily transactions. However, he argues that the core problem isn’t its controversial legal status or potential exposure to international sanctions, but rather its limited operational capacity.
Despite its theoretical ability to handle large amounts, the reality is that both individuals and companies struggle to process significant sums through the app. This is due to a combination of liquidity shortages among transfer agents and an inadequate technical infrastructure. Al-Karim warns against viewing the app as a panacea for the liquidity crisis, suggesting it may complicate the monetary scene rather than solve it.
In response, Syria’s Central Bank is reportedly moving to regulate the app’s use, aiming to position it as a “popular transfer tool” for domestic use and employee salaries, similar to telecom payment services. This strategy appears designed to sidestep criticism over its lack of formal banking licenses and compliance protocols, effectively creating a closed-loop electronic currency for local use only.
Glaring Security and Privacy Gaps
Serious security flaws and alarming user experiences are fueling distrust in the platform. A report from the Syrian Center for Digital Security highlighted that ShamCash is not available on official stores like Google Play or the App Store, meaning it has bypassed standard security vetting. The app handles sensitive financial and personal data without a clear privacy policy or legal framework.
The report identified weak authentication systems for administrative panels and vulnerabilities in encryption, which could theoretically expose financial communications. More alarmingly, a malicious version of the app’s installation file was found circulating, posing a high risk of phishing and widespread security breaches for users.
Poor User Experience and Support
Users have voiced numerous complaints about the app’s reliability and support. One government employee mentioned she immediately transfers her salary out of her ShamCash wallet due to a lack of trust and fear of a sudden shutdown. She also recounted hearing of users being locked out of their accounts after updates.
The account creation process itself appears to have significant loopholes. The same employee noted she was able to open an account using incorrect personal details, such as her mother’s national ID number, which was approved without issue.
The app’s official social media pages are filled with unanswered complaints about registration errors, transfer failures, and sudden account logouts. Attempts by the source publication to contact customer service through the app and Messenger—the only available channels—received no response.
About ShamCash
ShamCash is a Syrian mobile payment application that allows users to conduct financial transactions, including money transfers, bill payments, and payment of government service fees. It has gained prominence as a digital alternative to cash amid a severe liquidity crisis in the country, though it operates with an ambiguous legal status and is not available on official mobile app stores.
Source: Al-Modon
