Chipper Cash, one of the largest cross-border payments providers in Africa, has announced that it has raised $150 million in its latest Series C funding round that was led by FTX and also involved others as well.
This is in addition to the $100 million Series C funding that it had received in its first round and this takes the total funds collected by Chipper to $305 million. The company was started in 2018 and it has since focussed a lot on cross-border payments in Africa and has so far expanded into 6 countries within the region. It has also expanded in recent times to the UK and US as well and so far, it has been able to handle incoming payments into Africa from these countries while payments in the other direction, from Africa to these countries is expected to be launched in the early part of next year. These are highly lucrative avenues for payment services and though it is generally believed that the margins are low, it is compensated by the high transaction volumes that are seen in this segment.
It is also reported that the company is looking into expanding its payments offering to include social payments as well which has become pretty famous in recent times especially with Twitter also allowing payments to be made to content creators on its platforms. So such content creators would be able to reach out to their fans and have subscriptions added to their content which would be a great way to monetize content. With FTX also investing in Chipper, it may also open the doors for crypto to be integrated into the Chipper platform in the coming months which could make the platform truly global as it would then be able to facilitate payments across the globe. But of course, all this would be subject to the respective approvals from the regulators which could be a challenge in itself.
For now, the company seems to be satisfied in growing and expanding its payments and associated features and there has not been much talk about integrating crypto into the platform as yet. Africa is a region of high potential which has not been tapped fully and this region might be the next frontier for the payment companies as they look for new avenues to expand their offering.