Chipper Cash, an African cross-border fintech startup, has enabled Rwandans to send money directly to mobile money and bank accounts in over 21 countries in Africa and the United States. This significant development was announced during the Inclusive Fintech Forum in Kigali, where Chipper Cash revealed its customer base of over five million across Africa.
The Minister of ICT and Innovation, Paula Ingabire, praised the launch as part of Africa’s ongoing commitment to transforming digital transactions and connections. She emphasized that Chipper Cash’s user-friendly and innovative mobile application aligns perfectly with Rwanda’s vision to promote fintech innovation and investments, fostering economic growth, and facilitating access to financial services.
Ingabire highlighted that Chipper Cash’s expansion to Rwanda is in line with the African Continental Free Trade Area’s objective of eliminating trade barriers and enabling secure cross-border transactions. By offering a seamless and efficient method for moving money across borders, Chipper Cash contributes to this goal, fostering collaboration between technology and finance companies to drive growth and prosperity across the continent.
The traditional banking system has faced criticisms for its limitations in the cross-border payments market. Experts at the forum pointed out challenges such as high costs, lengthy transaction times, lack of transparency, and complex processes that particularly affect consumers and small to medium-sized businesses.
Levis Karangwa, a participant at the event, noted that fintech is revolutionizing the current scene, providing a faster, more accessible, and transparent system for cross-border payments. Pardon Mujakachi, Head of Expansion Organization at Chipper, announced during the forum that the next product to be introduced in Rwanda is the virtual Chipper Card, which will enable easy online shopping, streaming, and subscription services.
A recent report by McKinsey revealed a significant increase in domestic electronic payment volumes, including wallet-enabled payments, in Africa from 2015 to 2020. It is projected that these volumes will grow five-fold by 2025, with nearly 150 billion transactions. However, the cost of sending money back to countries like Rwanda remains a major challenge, often burdening senders with fees as high as Rwf20,000.
Chipper Cash aims to address these challenges and promote financial inclusion by offering an accessible and inclusive platform for money transfers. The company believes that its presence in Rwanda will alleviate money transfer obstacles, enhance financial inclusion, and contribute to the development of an interconnected African global economy. Chipper Cash is eager to collaborate closely with regulatory partners to ensure the smooth operation of its services in the country, expanding access to inclusive financial services for the Rwandan population.
