Disclaimer: This article is based on publicly available data to provide transparency and help readers understand how Chipper Cash differentiates itself from other remittance platforms and analyze industry trends.
Chipper Cash operates Chipper Checkout, a merchant-focused service that generates steady revenue from business-to-consumer payments. Meanwhile, its fee-free model has earned the platform trust and strong user feedback across Africa.
Since raising $30,000 in seed capital in 2018, Chipper Cash has experienced rapid growth. Co-founders Ham Serunjogi and Maijid Moujaled, drawing on their tech backgrounds, set out to simplify cross-border payments in Africa.
Now a key player in fintech, Chipper Cash’s growth raises the question: which monetized services have driven its impressive expansion? By the end of this article, you’ll understand the strategies behind Chipper Cash’s success, how its revenue model works, and what it means for both users and businesses.
Company Profile
Here’s a quick look into Chipper Cash and its core details:
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| Name | Chipper Cash |
|---|---|
| Website | chippercash.com |
| Founding Date | 2018 |
| Founders | Ham Serunjogi, Maijid Moujaled |
| Employees | Approximately 300 |
| Headquarters | San Francisco, CA, United States |
| Industry | Financial Technology (FinTech) |
| Business Model | Mobile-based cross-border payment platform |
| Estimated Valuation | $500 million |
| Key Services | Peer-to-Peer Money Transfers, Bill Payments, Crypto Trading, Investment Services |
| Competitors | Grey.co, Payday (Now Changera), Sendwave, Geegpay, Sudo.Africa, Eversend |
| Contact Email | support@chippercash.com |
What has changed since 2018?
Chipper Cash’s first big break came in November 2018 when 500 Startups invested $150,000, allowing them to expand into Kenya and Rwanda. By May 2019, they raised another $2.4 million and launched Chipper Checkout, their B2B product.
Momentum built quickly, and in 2020, they secured $43.8 million in funding, driven by the pandemic’s surge in cross-border payments. That year, Chipper’s revenue hit $18 million, and they introduced crypto trading, allowing users to trade Bitcoin.
In 2021, the company reached unicorn status after raising $100 million. They expanded into the UK and U.S., and introduced new features like stock trading and the Chipper Card. High-profile partnerships followed, including signing Burna Boy as an ambassador, further boosting their brand visibility.
By the end of the year, they raised another $150 million in Series C funding, pushing their valuation to $2.05 billion and quadrupling revenue to $75 million from 2020.
However, 2022 brought challenges: inflation, rising interest rates, and regulatory setbacks, including a halt by Kenya’s Central Bank. The company also had to cut 12.5% of its workforce to adapt to changing conditions.
In September 2023, Chipper Cash achieved a significant milestone, issuing over one million Chipper Cards, making it the largest issuer of virtual cards in Africa. Notably, for 21% of users, this was their first-ever payment card, further highlighting the platform’s impact on financial inclusion and digital accessibility across underserved regions.
Despite the 2022 hurdles, Chipper Cash remains a leading African fintech, leveraging previous funding rounds to sustain growth and drive towards profitability.
What is the company’s business model?
Chipper Cash’s business model focuses on generating revenue from a few key sources while keeping its core service (free money transfers) intact to attract users.
The platform primarily makes money through fees on stock and cryptocurrency transactions, interchange fees from its debit card, and fees businesses pay to use its Network API.
With customers onboard, the company introduces additional products, like its virtual debit card and investment options, which provide revenue through transaction fees and interchange fees. Every time a user makes a card payment, Chipper Cash earns a small portion of the transaction fee, which is shared with partners like Visa.
The investment side of Chipper Cash allows users to trade stocks or cryptocurrencies, with each transaction incurring a 1% fee. This is a significant revenue stream, as users are drawn to the convenience of purchasing stocks from major companies and cryptocurrencies like Bitcoin, all within the app.
Businesses that use Chipper’s API to process payments also contribute to the company’s revenue, paying a fee for the ability to collect recurring payments, issue refunds, and make payments across borders. Chipper Cash also protects businesses by verifying the identity of all users, reducing the risk of fraud—a significant issue across the continent.
So how much does Chipper Cash make per transaction?
- Currency Exchange Fees
When users exchange currencies or trade cryptocurrencies in the app, Chipper Cash adds a small fee to the transaction, typically around 1%.
Total Value Generated: For every $1,000 exchanged, Chipper Cash makes $10 (1%). - Transaction Fees
Peer-to-peer transfers are free for users, making it attractive for a large audience. However, businesses using Chipper Checkout pay a fee for every transaction.
Total Value Generated: For a $1,000 transaction, Chipper Cash earns $15 (1.5%). - Cryptocurrency Trading Fees
Users can trade cryptocurrencies like Bitcoin within the app, and Chipper Cash takes a small percentage fee on each trade.
Total Value Generated: For a $1,000 trade, Chipper Cash makes $10 (1%). - Interchange Fees
Whenever a user makes a purchase with the Chipper Card, Chipper Cash earns a small percentage of the transaction.
Total Value Generated: For a $1,000 purchase, Chipper Cash earns $5 (0.5%). - Withdrawal Fees
Chipper Cash charges a fixed fee when users withdraw money from their Chipper account to a bank account.
Total Value Generated: For each withdrawal, Chipper Cash makes $1.50.
Key Strategies to minimize Decline Fees on Chipper Cash for International Payments
Here are some key strategies to help you manage your account:
- Maintain a Sufficient Balance
Always ensure your Chipper Cash account has enough funds to cover your transactions. Decline fees often result from insufficient funds, so keeping a buffer can help avoid these charges. - Regularly Monitor Your Account
Frequently check your balance and transaction history to stay on top of your finances. This allows you to quickly resolve any potential issues that could lead to declines. - Manage Subscriptions
If you use Chipper Cash for subscriptions, regularly audit them and cancel services you no longer need. This prevents unexpected charges that could result in declined payments. - Overfund Your Virtual Card
If you use Chipper Cash’s virtual card for online transactions, consider overfunding it. This helps ensure your card is always ready for use and reduces the risk of declined transactions. - Set Reminders
Enable in-app notifications for low balances or declined transactions. Additionally, set reminders for your last funding date to ensure your account is topped up in time. - Understand the Fee Structure
Familiarize yourself with the fees related to declined transactions. Knowing these details will help you plan better and avoid unnecessary costs.
When in doubt, always refer to Chipper Cash’s FAQ section to make the most of the platform.
Conclusion
Looking ahead, Chipper Cash is set to keep growing whether through expansion into new markets or by leveraging emerging technologies. And as the cross-border digital payments competition intensifies, their focus on user experience and adaptability will be key in maintaining their edge. The future looks promising for this dynamic fintech, and it’s definitely worth keeping an eye on their journey.
