What is Ledger Mode for Institutions?

Ledger Mode is a powerful feature designed to help schools and businesses adopt the KiddyCash ecosystem instantly, even before they have completed the full bank integration process.

By using virtual accounts (is_virtual = true), institutions can use KiddyCash as a digital source-of-truth for payments made via offline methods like cash, bank transfers, or mobile money (e.g., M-Pesa).

How It Works

When an institution is in Ledger Mode, the flow of money is tracked digitally through a manual reconciliation process:

  1. Payment Initiation: A child or parent initiates a payment to the institution (e.g., for school fees or a snack).
  2. Pending Status: The transaction is created on the KiddyCash ledger with a status of Pending. In this state, the money is earmarked but has not yet “arrived” at the institution digitally.
  3. Offline Verification: The institution’s manager (Bursar, Shop Manager, etc.) verifies that they have received the payment through an external, physical method.
  4. Manual Approval: The manager clicks Approve in their KiddyCash portal.
  5. Ledger Update: The digital balances are updated across the system to reflect the successful payment.

Why Use Ledger Mode?

  • Instant Onboarding: You don’t need to wait for KYC or bank account approval to start building your community and tracking student spending.
  • Accuracy: It replaces paper-based tracking or Excel sheets with a real-time, auditable digital ledger.
  • Engagement: Kids get the same experience as real-money spending, teaching them the value of digital transactions and budgeting.
  • Easy Graduation: When your institution is ready for real-money payments (is_virtual = false), you can switch over with a single verification step, keeping all your existing ledger history.

The 1-Hour Rule

It is important to remember that Ledger Mode transactions expire after 1 hour if they are not approved or declined. This ensures your pending list stays clean and prevents children from having funds “locked” in a pending state indefinitely.

Related articles: