San Francisco-Based Fintech Firm Expands To Nigeria, Partners With Paystack
Chipper Cash, a Ugandan mobile money payment firm based in Silicon Valley, has partnered with Paystack, a Nigerian fintech startup providing payment tools to businesses across Africa, to expand into Nigeria.
Nigeria is the largest economy and most populous country in Africa. Its fintech industry is one of the most advanced in Africa, up there with Kenya and South Africa, Chipper Cash CEO Ham Serunjogi told Techcrunch.
“I think for any company doing fintech across borders that is looking to be successful in Africa, it’s imperative that you have a presence in Nigeria”, he said.
Chipper Cash is expected to leverage Paystack’s payment gateway infrastructure to provide mobile-money services to and from Nigeria, Techcrunch reports.
Chipper Cash offers no-fee, person to person, cross-border mobile-money payments in Africa through its app. It claims to have processed 250,000 transactions for more than 70,000 active users, according to Techpoint.
Now operating in six African countries and with offices in Ghana and Kenya, Chipper Cash is employing staff and launching an office in Nigeria, Africa’s most populous country and a major remittances market.
Sub-Saharan Africa’s remittances market was worth $38 billion in 2017, according to World Bank data. The largest number of remittance recipients were in Nigeria, with $21.9 billion or almost 58 percent of sub-Saharan Africa’s total remittances.
U.S.-based fintech firm with an African focus
They chose San Francisco as their headquarters with offices in Africa to have access to venture capital and U.S. developers while also maintaining a presence in their key African markets, Techcrunch reports.
Lagos-based payments firm Paystack also has an office in San Francisco. It was the first Nigerian company to be accepted into Silicon Valley accelerator Y Combinator and has raised $11.7 million in funding since its launch in 2016, according to Crunchbase.
Chipper Cash has made a few high-profile hires for its new office in Lagos.
Alicia Levine is leaving Kenya-based internet hardware startup Brck to become Chipper Cash’s chief operating officer.
Listen to GHOGH with Jamarlin Martin | Episode 67: Jamarlin Martin
Jamarlin goes solo to discuss the NFL’s entertainment and “social justice” deal with Jay-Z. We look back at the Barclays gentrification issue in the documentary “A Genius Leaves The Hood: The Unauthorized Story of Jay-Z.”
Chipper Cash also runs Chipper Checkout, a merchant-focused, fee-based mobile payments product. That product is expected to be launched in Nigeria later this year.