International Finance

Start-up of the Week: Chipper Cash continues to dominate Africa’s fintech landscape

IFM_Chipper Cash
Having a free Chipper account will help its African customers to unlock international transfers, payment cards and investing

Chipper Cash, founded in 2018 in California, has emerged as Africa’s leading fintech platform. The start-up has now expanded its operations further in the continent by opening its branch in Rwanda, after dominating the landscapes of Ghana, Kenya and Nigeria.

Chipper Cash has grabbed the headlines for providing Africans with a user-friendly and innovative mobile application which facilitates cross-border fund transfers, apart from enabling global payments using virtual cards, and providing investment opportunities in global stocks and cryptocurrencies.

Through Chipper Cash, its users can send personal payments for free. Having a free Chipper account will help its African customers to unlock international transfers, payment cards and investing.

Knowing Chipper Cash In Detail

The venture’s app has over five million users, who can also invest their money in more than 6000 American businesses. Chipper Cash has also an impressive money processing volume of over USD 1.5 billion (per quarter).

Africans working in the United States can send money back home, directly to their loved ones’ bank and mobile money accounts, through the Chipper Cash app. Currently, the service is available in over 21 African countries.

Talking about money transfer, let’s discuss the venture’s ‘Send & Receive Cash’ feature, which helps the customers’ money to move across Africa, or across an ocean, in a fast and convenient manner. The whole capital transfer process happens in either of the ‘free transfers’ or ‘lowest cross-border rates’ mode.

“Securely link any mobile money or bank account. Cash in and cash out at no cost. Get 2% cashback on Airtime, every time. Instantly top-up from anywhere, on any network. Send airtime to anyone across Africa,” the venture commented.

Chipper Cash’s services can also be used to make instant bill payments, in an easy and secure manner, without paying additional fees.

“Everyone on Chipper verifies their identity for increased trust. Unique @ChipperTags make it easy to always be 110% sure you’re sending money to the right person,” the company stated further.

Another unique product from Chipper is its Chipper Card, using which one can pay both the regular bills and the subscription packages of streaming platforms (OTT platforms).

Since the card only operates with a pre-determined amount uploaded to it, it also helps consumers in maintaining their monthly budgets.

Investment Opportunities In Crypto & Stocks

Chipper users can buy, sell, send and receive cryptocurrencies through the fintech platform. In Uganda and South Africa, for example, one can start investing in digital currencies with a starting amount of less than USD 1. A similar service will be extended to Rwandan users as well.

“Buy and sell 10 plus crypto coins including Bitcoin, Ethereum, USDC, Avax, Matic, Solana, and Doge, which are available for purchase 24/7 with real-time pricing,” Chipper commented, while adding that the users can even invest in stablecoins, with the option of instant trade execution.

Talking about Chipper’s crypto services, anyone can trade in chain currencies like BTC, ETH, USDC and Doge.

“Send/receive from any third-party wallet address in Uganda and South Africa. Instantly cash out crypto to local currencies with no fees,” the venture stated further.

Also, the Chipper users, also can buy crypto using their ‘Chipper Balances’, apart from receiving crypto payments and converting them at the best rates.

Chipper users can build their stock portfolios further by investing in fractional shares of their favourite publicly traded companies.

Customers can buy fractional stock shares with as little as USD 1, while owning shares of tech and sports biggies like Facebook, Amazon, Apple, Google, Nike, Netflix and 1000 other publicly traded companies.

During the process, they don’t need to hurt their purses to pay high commissions.

Chipper Network API

“Chipper Network API is a payment method that gives you access to 5Mn+ KYC verified customers. We empower you to accept payments and send payouts across all our markets,” Chipper commented.

Chipper Network API’s key specialisation lies in its cross-border payments mechanism. Businesses, by using the Chipper Network API, can receive payments from their customers in multiple currencies. Transactions will come with low fees, thus ensuring more profit from every sale.

Businesses can also collect one-time/recurring payments from millions of verified customers.

“Use the Chipper Network API to create custom payouts to customers or suppliers. Issue instant refunds to your customers directly into their wallets. Access your multi-currency business wallet directly from the Chipper Cash app,” the fintech venture stated.

‘Chipper Network API’ comes with an easy and accessible dashboard, which helps businesses to have easy and quick access to their transaction data.

“Get instant insights on your sales, monitor transactions, download reports, and all-round account management to power your business. Generate API keys on the go,” the venture remarked.

Also, using ‘Chipper Network API’, businesses get access to the millions of “verified and KYC’d customers” in Africa and beyond the continent. Also, the encrypted business wallet of ‘Chipper Network API’ keeps the ventures’ money safe with a guarantee.

Tough Test Awaits Chipper Cash

In November 2021, the African cross-border payments company raised USD 150 million in a Series C extension round led by Sam Bankman-Fried’s cryptocurrency exchange platform FTX. Six months before that, the start-up closed its first Series C round of USD 100 million, led by SVB Capital, the corporate venture capital arm of SVB Financial Group.

However, things have changed since then. In 2022, FTX went bankrupt. A year later, SVB followed a similar path. Chipper Cash too felt the heat of the market headwinds. Since December 2022, the venture laid off its employees in three rounds. Alicia Levin, the company’s global chief operating officer, and Leon Kiptum, Chipper Cash’s country director for Kenya have left the business too.

However, in a much-needed positive development for its stakeholders, Chipper Cash has now expanded its African operations further in Rwanda. Will the venture ride out of this temporary blip and come back to the growth path in the 2023-24 financial year? We need to wait and watch.

Image Credits: Chipper Cash

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