Moreover, two platforms often come up in this conversation: Cardtonic and Chipper Cash. Both offer virtual USD cards, are popular, and they promise seamless international payments. But when you look closely at fees, FX rates, and everyday usability, they’re not the same.

By the end of this article, you’ll have a clear, side-by-side understanding of both platforms. This will help you choose the option that fits your spending needs and saves you money.

Cardtonic and Chipper Cash Overview

Here’s the overview of Cardtonic virtual USD cards compared to Chipper Cash Virtual Dollar cards.

Fees (Card Issuance & Usage)

When it comes to fees, most people just want one thing. They want assurance that their money is secure and free of unnecessary deductions. As one of the best virtual cards in Nigeria, Cardtonic’s charges are laid out clearly from the start.

Creating a regular virtual dollar card costs $1.50, and the Platinum option costs $5. Funding your card incurs a 2% fee on the Naira value. If you’re topping up your Cardtonic wallet with Naira, a service charge capped at ₦2,000 applies. There is also a $0.50 fee for cross-border transactions in currencies other than USD. The biggest part is that you don’t need to pay any monthly maintenance fee.

Chipper Cash takes a different route on fees. Creating a virtual USD card will cost approximately $3. There’s a $1 monthly maintenance fee deducted on the 28th of every month to keep the card active. Additionally, every successful USD card transaction incurs a flat $0.90 fee. Neither platform hides its core fees in confusing language.

However, if you’re looking for a no monthly charge option, you can consider Cardtonic. With Chipper Cash, the maintenance and per-transaction fees can add up over time if you’re making frequent small purchases or paying for new AI automation tools.

FX Rates & Currency Conversion

FX rates and currency conversion are where the experience of paying globally really starts to matter. When you fund your virtual dollar card on both platforms, you see the rate before you confirm your transaction.

Through the app, you will know exactly how much your local currency becomes in USD before the charge hits your balance. This makes budgeting and planning your international spend far less stressful. However, exchange rates may vary based on market fluctuations and current Naira exchange rates.

For Cardtonic, the fees ranged from ₦1430 to ₦1485, which is quite fair for everyday Nigerian users. Chipper Cash offers the Naira exchange rate for approximately ₦1,537. These figures are subject to market fluctuations and volatility. It is important to check and choose what works for you.

Local Currency Funding

What really matters when funding your virtual USD card is how easy it is to do so. Cardtonic makes funding seamless for everyday users in Nigeria and Ghana. You simply top up your Cardtonic wallet with Naira or Cedis, and then fund your virtual dollar card from that balance.

The app guides you through the process and shows the charges before you confirm. You don’t have to worry about linking a foreign card or converting money elsewhere before you start your payment journey.

Chipper Cash, on the other hand, lets you fund your USD card from your Chipper wallet. You can fund in Naira or with your USD balance, with a minimum top-up of around $1.

The process is straightforward. Go to the card tab and select the USD card. Choose your funding source and top it up.

Speed & Reliability

We all have many things going on in our lives, and we tend to move towards options that help us save time. Cardtonic Virtual dollar card is built for speed and trust. Once you sign up, you’ll verify your account. Afterwards, fund your wallet, and generate your card.

Then you can start using it almost instantly to pay for international bills. If you shop frequently, this virtual card provides a consistent experience every time you pay for Temu, AliExpress, and Shein Orders.

Chipper Cash also delivers reasonable speed with its virtual USD card. You can generate and fund your card directly from your Chipper wallet. The app is user-friendly, fast, and reliable for paying international bills and making cross-border purchases.

Transaction & Spending Limits

Limits matter, especially when you’re planning to use your virtual USD card for big purchases. Cardtonic does not have a strict cap on how much you can load your card with. Once you meet the minimum funding requirement of $5, you’re free to fund the card based on your needs.

The limits are also flexible and designed to support both smaller and larger transactions. You can spend up to $50,000 cumulatively in a day, with a per-transaction cap of $10,000. That means the card works just as well for everyday payments as it does for bigger international transactions.

Chipper Cash takes a more structured approach. In Nigeria, your Chipper USD card lets you spend up to $5,000 per day and $20,000 per month, which is generous for many users, but it does place a ceiling on how much you can use within a set period.

Security & Trust

When you’re dealing with international payments, security isn’t just a nice-to-have; it’s non-negotiable. It’s already hard enough to make money; you don’t want your money going down the drain at all.

Cardtonic uses robust security protocols and Know Your Customer (KYC) verification to ensure only verified users can create and use cards, reducing fraud risk. Cardtonic also implements additional layers of protection for cardholder data and transactions.

Chipper Cash takes a similarly serious approach to security. Their virtual USD card is 3D-secure authenticated, and you can protect your card with a PIN, lock or unlock it from within the app, and receive instant transaction notifications.

It’s all designed to ensure that your money is always safe, because it’s devastating to lose hard-earned money. Both platforms have systems in place to help protect users.

Cardtonic Vs Chipper Cash: Which Platform Fits Your Needs Better?

By now, you’ve seen how both platforms handle fees, FX rates, funding, and limits. So let’s answer the most important question: which one actually works best for you?

If you’re looking for an option to fund your card easily without the need for a wallet, Cardtonic gives you that luxury. You don’t need a foreign card to pay. You get to see exchange rates upfront with no monthly maintenance.

On the other hand, if you’re already active in the Chipper Cash ecosystem and you’re comfortable with its wallet structure, their virtual USD card is a solid choice too. Both platforms are transparent, safe, and reliable.

Frequently Asked Questions About Chipper Cash and Cardtonic Virtual Cards

1. Which Platform has Better FX Rates?

FX rates aren’t fixed numbers you can set and forget. They move constantly, influenced by factors such as market demand and supply, inflation, global economic conditions, and policy decisions. That’s why the rate you see today might not be the same tomorrow. To compare FX prices, check for the exchange rates on both platforms and pick the one that works best for you.

2. Which Virtual Card is The Best in Nigeria?

Cardtonic and Chipper Cash are ranked among the best platforms to get your virtual dollar card, and you won’t go wrong in trying them out. But if you’re looking to get your dollar card at a lesser rate, Cardtonic works best for you.

3. Can I Fund My Virtual USD Card with Naira or Cedis?

Of course you can. Both Cardtonic and Chipper Cash allow you to fund your virtual USD card with Naira. However, if you want to fund it with Ghana Cedis, you should try Cardtonic instead. You can fund your dollar card with both Naira and Cedis.

4. Are There Hidden Fees on Either Platforms?

For Cardtonic, there are no maintenance or hidden costs. But there’s a $1 monthly maintenance fee deducted every month on the Chipper Cash virtual dollar card.

5. Which is Better for Freelancers and Online Businesses?

Both platforms can work well, but it depends on how you operate. If you want a more affordable option, Cardtonic might be a good fit.

6. Is Cardtonic or Chipper Cash More Reliable for Subscriptions and Ads?

Both are more reliable to pay for your subscription, ads, or other international bills, especially in terms of fee transparency, ease of funding in local currency, and security.

Conclusion

In a world that is constantly evolving, having a virtual USD card is non-negotiable. However, choosing the best platform depends on your lifestyle, preferences, and budget.

If you need a sustainable option without card maintenance fees, consider Cardtonic. If your needs lean toward cross-border transfers within a familiar wallet ecosystem, Chipper Cash may be a natural fit.

The co-branded service enables customers in Zambia to send and receive money globally, based on their convenience and needs.

Zoona is a leading fintech and enterprise payments platform in Zambia. Acquired by Chipper Cash in 2022, the two brands now support 5 million customers across Africa. 

Today’s announcement combines Western Union’s global strength and 175 years of expertise in international money movement with Chipper Cash’s and Zoona’s deep local payments knowledge and innovative mobile technology platform. 

Chipper Cash app users can now support their loved ones by sending and receiving money seamlessly across Western Union’s network of over 200 countries and territories. 

They also have the flexibility to send funds to mobile wallets worldwide, as well as for cash pick-up at hundreds of thousands of locations abroad. Payout to bank accounts shall be launched shortly.

“Zambia’s digitally savvy population of over 20 million is driving a remarkable shift toward mobile-first financial solutions,” said Mohamed Touhami el Ouazzani, Western Union’s Regional vice president of Africa. 

“Integrating our international money transfer services in the Chipper Cash app means customers can transfer funds across our global network – reliably and with ease. I am delighted then that, together, we are expanding the possibilities for Zambians to connect, transact and thrive in the global economy.”

The Chipper Cash app is available for download on both Android and iOS smartphones. To initiate a Western Union transaction, customers can use funds stored in their Chipper Cash wallet. The wallet can be conveniently topped up at multiple cash and digital payment touchpoints, including retailers, mobile network operators, banks and ATMs.

“At Zoona, we’ve witnessed firsthand the incredible evolution of Zambia’s financial landscape—from the early days of cash-based transactions and agent networks to a thriving ecosystem of mobile and digital payments,” said Brett Magrath, CEO at Zoona and CPO at Chipper Cash. 

“This partnership marks the next chapter in that journey. With smartphone adoption on the rise, there’s an increasing appetite for digital financial services that move beyond USSD to deliver richer, app-based experiences. This partnership extends the reach of Zambia’s vibrant fintech ecosystem—connecting more users to global financial services through a seamless digital experience.”

The collaboration builds on Western Union’s well-established physical presence in Zambia that caters to diverse and fast-evolving customer needs. The move also supports Western Union’s, Zoona’s and Chipper Cash’s shared mission to make financial services accessible to all consumers in Zambia – regardless of their banking status.

“But beyond these, there’s a space where unicorns, those billion-dollar minds of the business world, are no longer imaginary but tangible outcomes of Africa’s entrepreneurial determination.”

Tech unicorns are the new celebrities, and Africa is no longer in the shadows but birthing top global startups. From Lagos to Nairobi, Cairo to Cape Town, entrepreneurs are tackling local and global challenges with scalable, tech-driven solutions.

Investors are finding their new billion-dollar obsession on the continent, but really, “Who knew the next Silicon Valley would be in Africa?”

In the past few years, we’ve seen companies like Flutterwave, Chipper Cash, and Jumia, which have achieved unicorn status and also created ways for others. 

Entrepreneurs like Olugbenga Agboola of Flutterwave have attributed their success to understanding local challenges and translating them into global solutions. Agboola shared during an interview: “I personally believe in just doubling down and getting the work done which is why I’ve been busy building the infrastructure, the technology.” 

These companies are solving problems for Africa; and creating models that can work anywhere in the world. The focus is on scalability. 

According to data from Partech, African tech startups raised over $3.5 billion in 2023. As of September 2024, these startups had already crossed the $2.1 billion mark, according to Weetracker—an increase compared to $1.7 billion in funding for the same period in 2023. Though 2024 started slow, the pick-up was commendable.

One of the outstanding deals of the year was Moniepoint’s $110 million Series C funding round in October 2024. This raise, led by Development Partners International, with participation from Google’s Africa Investment Fund, Verod Capital, and Lightrock, made up 43% of the total $250 million raised by African startups in just one month.

The capital boosted the startup funding sector in Africa and also asserted the strength of the growing fintech sector on the continent.

Globally, unicorn startups typically come from a mix of sectors, youthful populations, and market demands. Africa has all three in abundance. 

The continent has the youngest population in the world, with a median age of just 19.6 years, and is home to over 1000 active tech hubs. Combined with a rapidly expanding digital economy—projected to reach $712 billion by 2050—Africa’s startup sector is a bubbling cauldron of opportunity.

Sectors on the Go for Unicorn Growth in 2025

While fintech has topped the African startup sector, 2025 looks to be a year with more diversified unicorn companies. These industries will be driven by innovative solutions and increased investment.

1. Fintech: The Reigning King
   Fintech remains Africa’s most funded sector, accounting for over 40% of venture capital inflows. With an unbanked population estimated at 57%, digital payment solutions, credit access, and blockchain innovations have huge prospects. Startups like Yellow Card and Paystack are leading advancements in decentralised finance and SME lending. Africa’s mobile money market, according to McKinsey, is expected to reach $40 billion by 2025, thanks to the increasing smartphone penetration. Mobile money solutions like M-Pesa and Chipper Cash are bolstering financial access, and the fintech ecosystem is not showing any signs of slowing down.

1. Climate Tech and Renewable Energy
   Africa’s energy challenges—over 600 million people lacking electricity—have led startups to innovate with renewable solutions. Companies such as Kenya’s BasiGo, which focuses on electric buses, and solar startups like M-KOPA and d.light are enhancing access to energy and enhancing sustainability. Investments in the sector are projected to hit $44 trillion by 2030, with $35 trillion allocated to transition technologies such as efficiency, electrification, grid expansion, and flexibility, according to the International Renewable Energy Agency (IRENA)
2. HealthTech: Building Resilient Healthcare Systems
   The pandemic uncovered gaps in healthcare systems, but also stimulated innovation. Startups are leveraging telemedicine, AI-driven diagnostics, and affordable healthcare solutions. Helium Health is digitising patient records, while mPharma is tackling medication accessibility. The healthcare market is projected to grow to $259 billion by 2030, with startups addressing challenges through technology.
3. AgriTech: Feeding a Billion People
   Agriculture employs over 60% of Africa’s population but faces inefficiencies along the value chain. Companies like Kenya’s Twiga Foods are connecting farmers to markets using technology, reducing waste and increasing profits. The agritech market is expected to grow 12.2% annually, reaching $26.27 billion by 2025.
4. EdTech: The Future of Learning
   With a young population and increasing internet penetration (currently at 43%), edtech is a natural growth area. Startups like Nigeria’s uLesson are delivering affordable, high-quality education to millions. Africa’s edtech sector is projected to grow at a compound annual growth rate of 16.3% through 2025.
5. Logistics and E-Commerce: The Amazon of Africa?
   Fragmented logistics have historically limited e-commerce, but startups like Sendy and Jumia are bridging the gap with efficient delivery systems. Africa’s e-commerce market is expected to reach $56 billion by 2029, driven by improved infrastructure and increasing trust in online shopping.

The Growth Drivers

Several factors will influence the rise of African unicorns:

• Investment Trends: More diversified funding, with international venture capitalists and local investors betting on startups. Cities like Ibadan, Kigali, and Alexandria are emerging as investment hotspots.
• Infrastructure Improvements: Expanding 5G networks and cheaper smartphones are driving connectivity.
• Talent Pool: Africa contributes 10% of the world’s tech talent, with Nigeria and Kenya leading in developer resources.

Challenges to Overcome

The challenges cannot be ignored and African startups are sometimes hit hard by these. Funding gaps, regulatory complexities, and infrastructure deficits are some of the issues that limit growth, with over 75% of startups failing within their first five years.

Geopolitical instability in certain regions causes risks for both startups and investors. Added to this, the lack of mature exit strategies, such as IPOs, has raised questions about long-term returns for VCs. 

Again, Africa’s brain drain phenomenon—where top talent migrates abroad—is a big issue. Addressing these challenges will require innovative public-private partnerships.

Predictions for 2025

By 2025, Africa is projected to double its unicorn count, hosting at least 10 billion-dollar companies. Startups like Egypt’s MNT-Halan (fintech), Kenya’s Wasoko (retail supply chain), and Nigeria’s Moove (vehicle financing) are likely prospects.

Emerging hubs like Kigali and Accra are joining established centres such as Lagos (Yabacon Valley), Nairobi (Silicon Savannah), and Cape Town. These hubs are promoting innovation and creating a favourable environment for Africa’s next unicorns.

While cities like Lagos, Nairobi, and Cairo are usually in the spotlight, emerging hubs like Kigali and Alexandria are proving their mettle. For instance, startups in Rwanda are benefiting from government-backed innovation programs, like the Kigali Innovation City project, which provides incentives for tech companies. Alexandria, Egypt, is also promoting a growing community of entrepreneurs through its proximity to top universities and access to global markets via the Mediterranean.

Flutterwave, Africa’s highest-valued fintech, became one of the unicorns through a combination of strategic partnerships and relentless focus on market scalability. Its partnership with global payment platforms like Visa and Mastercard enabled seamless cross-border transactions, while its early focus on SME solutions gave it a strong foothold in untapped markets. 

The company’s $250 million Series D round in 2022 and its subsequent expansions into Latin America and Asia showed how African startups can become global competitors.

For Africa’s unicorns to thrive, stakeholders must play their part. Governments need to create clear and consistent policies to support innovation, investors must take risks beyond the usual hubs, and entrepreneurs must focus on sustainable growth rather than quick exits. 

“The future of Africa’s innovation is in the hands of those willing to stay the course—because unicorns aren’t built overnight.”

The event, themed “Scaling Cross-Border Payments and Remittances,” brought together industry leaders to discuss the challenges and opportunities in advancing cross-border financial transactions.

The webinar, which had average of about 200 participants, featured key insights from seasoned practitioners and experts from across Africa, Hong Kong and Singapore.

The dialogue covered the opportunities and challenges to scaling cross-border payments to boost livelihood and intra-Africa trade as well as trade between Africa and the rest of the world; leveraging the development in fintech and wider digital finance space.

Opening the event, Jacqualine Jumah, director of Advocacy and Capacity Development at AfricaNenda, highlighted key trends in payment volumes across Africa.

She noted that the continent has witnessed a significant surge in digital payment volumes, driven by increased mobile penetration and the adoption of fintech solutions.

However, she cautioned that while the growth is encouraging, the continent must address infrastructural and regulatory challenges to sustain this upward trajectory.

On the pressing issues of fraud, data privacy, and the need for strategic partnerships across Africa; Abiodun Animashaun, country director of Chipper Cash, emphasized the critical need for robust anti-fraud measures in cross-border transactions.

He highlighted that the success of these measures relies heavily on global collaboration between the private and public sectors, stressing that this cooperation is essential for enhancing the security and efficiency of cross-border payments.

Similarly, Paul Li, President Hong Kong Fintech Industry Association, addressed the challenges posed by varying privacy laws on the international transfer of data.

He noted that while technology such as AI can significantly aid in fraud prevention, the infrastructure required for such solutions is often hampered by these regulatory differences.

Li, called for a more unified approach at the governmental level to facilitate smoother data transfers, suggesting that mobile based solutions and blockchain technology could offer more streamlined and secure alternatives for managing digital identities.

The event also shed light on the importance of strategic partnerships for financial institutions looking to expand across the African continent.

Ho Chee Wai, lead consultant at JFourth Solutions based in Singapore, advocated for collaboration with established players in target markets, noting that such partnerships are crucial for easing the complexities associated with regional expansion.

He emphasized that such alliances are not only beneficial for entering new markets but are also vital for accelerating the setup and operation of financial services across Africa.

Furthermore, the discussion highlighted the potential of a unified digital identity system in Africa.

The panelists explored the use of mobile phones and biometric information to create blockchain-based ID tokens, which could significantly streamline Know Your Customer (KYC) processes.

They suggested this approach would be more efficient and secure compared to traditional ID methods, which often face significant logistical challenges.

Reflecting on the relevance of traditional platforms such as SWIFT, questions were raised as to the true benefits for intra-Africa trade given challenges such as the need for settlement in non-African currencies and the associated volatility in African currencies; significant declined in correspondent banking relationship between Africa and advanced economies; and the relatively high transaction costs.

The view held was that fintech solutions, specifically tailored to the African context, might offer more effective and innovative alternatives.

On the issue of cyber fraud and insurance, Animashaun pointed out the difficulties fintech companies face in obtaining affordable coverage, attributing this to the limited anti-fraud infrastructure.

He noted that insurance companies often struggle to offer reasonable rates, necessitating case-by-case negotiations by fintech firms.

Overall, the webinar underscored the need for continued dialogue, collaboration, and innovation to overcome the challenges in cross-border payments and remittances.

It also set the stage for further discussions on blockchain technology, which will be explored in more depth during the upcoming Nigeria Fintech Week in October 2024.

These initiatives reaffirm FintechNGR and Africa Fintech Network’s commitment to fostering an innovation-driven environment not only in Nigeria, but across the entire Africa fintech ecosystem.

By leveraging technology and strategic collaborations, both organizations continue to play a pivotal role in enhancing efficiency, security, and accessibility in the financial services sector.

Flutterwave and Chipper Cash, two prominent fintech companies, are likely to be among the first to benefit from this development.

CBK governor, Kamau Thugge, said the regulator is working around the clock to amend the National Payment Systems Act of 2011 to give a legal framework for fintech firms to operate.

The proposed changes could be a big win for remittance and payment providers who have faced investigations and raids by Kenyan authorities on allegations of money laundering.

CBK’s proposed changes to the National Payment Systems Act to allow the registration and licensing of fintech startups could solve a legal gray area that has slowed down the expansion of fintechs in the country, allowing commercial banks and telcos to dominate.

“We are in the process of updating and amending the Payments Act, basically coming up with a new act. We hope to be able to finish that soon and also the regulations and that would guide our way forward in terms of payments service providers space,” said Kamau Thugge, CBK governor.

Kenya’s financial sector is regulated under the Central Bank of Kenya Act, the National Payment Systems Act alongside the National Payment Systems Regulations of 2014, and the e-money Regulations of 2013, all of which are unclear on fintechs.

This has put remittance and payment startups on a collision course with Kenyan authorities, with law enforcement including the Financial Reporting Sector (FRC) and the Asset Recovery Authority (ARA) freezing accounts and seizing assets of sector players on money laundering charges.

In 2022, CBK ordered local financial institutions including banks and mobile money service providers to cut links with fintechs, citing unspecified threats to the country’s financial systems. The regulator said then that the firms were operating without authorisation.

“Across Africa, the challenges of currency liquidity and access to global financial systems are palpable,” said Mike Brock, CEO of TBD.  “For these reasons, we are laser focused on building out the tbDEX ecosystem in Africa, which already includes Yellowcard, the largest and only licensed stablecoin on/off ramp on the African continent. Fast on the heels of our tbDEX SDK 1.0 release, adding Chipper Cash to our growing network will help to accelerate our work on global cross border payments and decentralized identity.”

Chipper Cash extends the power of tbDEX across Africa 

As one of the largest fintechs in Africa, Chipper Cash already allows 5 million consumers to move money efficiently to over 21 African countries.  And with over 1.2 million cards issued, Chipper’s integration represents the onboarding of one of the largest virtual card issuers in Africa.

“At Chipper Cash, we’re excited about the potential of tbDEX to revolutionize remittance flows into Africa,” said Maijid Moujaled, president and co-founder of Chipper Cash. “Remittances are a lifeline for many African families, but the costs of sending money to the continent remain among the highest globally. By plugging into an open protocol like tbDEX with numerous network participants, we believe we can, collectively as an industry, drive down these high costs and facilitate remittances in a more efficient, transparent, and compliant manner.”

Accelerating the path to financial inclusion for small businesses

While the initial collaboration will focus on enabling faster and less expensive consumer remittances, the two companies will also explore ways to empower small businesses.

Chipper’s offerings for businesses already enable local and cross-border digital payments for underbanked SMEs across 40 different African countries, powering disbursements and collections from bank accounts, mobile money wallets and Chipper wallets.

Leveraging verifiable credentials and decentralized identifiers to enable trust

Chipper Cash will also leverage tbDEX to unlock trusted, compliant transactions with verifiable credentials (VCs) and decentralized identifiers (DIDs) to accelerate the onboarding and identity verification of consumers and small businesses.

“Chipper is also excited to collaborate with TBD on the trust frameworks and innovative credential designs that underpin every financial transaction on tbDEX,” Moujaled said.  “The idea that we can have a standardized and streamlined way to verify our identity on the internet can help make the world feel a bit more inclusive.”

The fintech has steadily been delivering on its US licensing program over the past three years. The output has seen the company obtain money transmitter licenses for 80 per cent of US states, with well-established banking partnerships supporting operations across the remaining 20 per cent. State money transmitter licenses are important as they govern the safety and integrity of the payment infrastructure.

“The expansion of our US licensing program now totals money transmitter licenses for 40 individual states, marking a substantial leap forward in our journey to fulfilling our mission – and setting us apart in the fintech landscape,” said Naledi Ngubeni, Chief Compliance Officer, Chipper Cash.

Naledi continued: “We extend our deepest appreciation to regulators in all the jurisdictions that we operate in. Their guidance and oversight have been invaluable in ensuring we maintain the highest standards of financial security and integrity. These licenses aren’t just legal formalities, they embody our core values of providing reliable, safe and trusted financial services. They symbolize our pledge to adhere to stringent regulatory standards, ensuring the utmost security for our customers’ transactions.”

Working in close partnership with regulators, the company aims to acquire all 53 US state and territory money transmitter licenses next year.

The latest job cuts come six months after the removal of nearly a dozen roles, including the Chief Operating Officer. Primarily affecting the US team, the layoffs coincide with the reduction of salaries for remaining US and UK Chipper Cash employees.

Chipper Cash, which specialised in cross-border payments and recently entered the grocery industry, confirmed the layoffs, asserting that despite the challenges, its business is “doing very well” and is expected to be profitable in the coming months.

The company, founded in 2018, operates across eight countries, offering services such as zero-fee peer-to-peer transactions, global fund transfers, and assisting merchants with online payments. It also allows users in Nigeria and Uganda to trade cryptocurrency and buy fractional stocks in US-listed companies.

Despite raising over $300 million in funding and reporting significant growth with over 5 million downloads, Chipper Cash’s recent moves, including organisational restructuring and market focus adjustment, reflect challenges faced by fintech companies amid economic uncertainties and increased competition.

After doubling its workforce to 450 between 2021 and 2022, Chipper Cash’s growth has faced headwinds due to rising interest rates, the urgency to conserve costs, and competition from other fintech players. Earlier job cuts and leadership departures signal the company’s strategic shift towards core markets and products.

Financial challenges exacerbated by the collapse of prominent investors have prompted Chipper Cash to raise $25 million in convertible debt, signalling efforts to conserve cash and extend its runway in a challenging fundraising environment.

A spokesperson disclosed to Bloomberg that the development was already being discussed privately before the SVB’s closure, hence, not the reason for this. It was also revealed that the fintech might choose to go ahead or not.

In response to this, Chipper Cash told Bloomberg that the news is false.

“It’s been fairly common practice for us to receive various M&A proposals from different parties, which we evaluate to varying degrees. That being said, we have never sought to be acquired.”

Considering that the unicorn raised $150 million in a Series C extension round in 2021, valuing it at over $2 billion, this news left a lot of us wondering. Minds shifted to the fact that the startup might have been affected by SVB’s closure for the same reason that FTX was affected – withdrawal crunch.

Emphasizing the closure of SVB having little or no effect on the fintech, Ham Serunjogi, Chipper Cash CEO said: “Given the scale and complexity of our global operations, Chipper Cash maintains multiple banking relationships across the world – including multiple within the United States. As such, we had a very limited amount of money (only about $1M) held in our SVB account at the time the bank was taken over by the California regulator. We have already received confirmation from the FDIC that we can expect about half the funds back by Monday, March 13th 2023. Furthermore, there was absolutely no impact on our customer operations around the world.”

Speaking further, he said: “From a financial perspective, it doesn’t really change anything. SVB made their investment in Chipper in 2021 and we received those funds as soon as that round closed. What is happening now doesn’t change that. Additionally, SVB wasn’t the only investor in that round – we had several other new and existing investors participate in the $100m round – and SVB owns a very small part of Chipper ~2%. Chipper is very fortunate to have a very broad and supportive investor base that has supported us from our earliest days and continues to do so today.”

Chipper Cash enables users send and receive money across Africa seamlessly, with free transfers and affordable cross-border rates.

Having garnered over 5 million users since inception in 2018, Chipper Cash affirms to have issued 300,000+ visa cards and has a total process volume per quarter of more than $1.5 billion.

The uncertainty in the tech and startup landscape which started in 2022, seems to be ushering in some form of difficulties in various sectors.

Disclosing the news via his LinkedIn page, the Vice President of Revenue at Chipper Cash Stefano Pardi, referred to the occurrence as a sad one for the company. He wrote:

“Friday was a sad day for Chipper Cash, as many talented people were let go.

For my network: there is an incredibly talented pool of individuals across the US, UK, South Africa, Nigeria, Kenya, and more. They are all highly experienced in managing very complex, multicultural teams and projects in Fintech. All areas have been impacted, from Recruiting, HR, Marketing, Pricing, Product, Analytics, UX, Research, Legal, and more.

If you are recruiting: look out for the Chipper Cash folks, you might have the opportunity of a lifetime to hire competent, passionate, and driven people into your team. They are all battle-scarred and experienced in scaling a business!

For my Chipper family, my network is open to you. Reach out/connect if you need help! I have been honored to work with many of you and I am here to support as I can.”

Leveraged across five African countries including Nigeria and Kenya, as well as the US and UK, the fintech company enables bill payment, cross-border money transfers and bitcoin purchases.

It earns revenue through foreign-exchange fees and crypto brokerage commissions. From about two million registered users in 2020 to more than five million by the end of 2021, Chipper Cash has continued to grown commendably. 

The company was founded by Ham Serunjogi and Maijid Moujaled, and was one of Africa’s unicorns in 2021 when it raised $150 million Series C funding in an extension round led by Sam Bankman-Fried’s now-defunct cryptocurrency exchange platform FTX, and was valued at $2.2 billion. The startup has raised $280 million in funding from Deciens Capital, FTX Ribbit Capital and others.