Chipper Cash extends peer-to-peer money transfer service to South Africa-Fintech
Chipper Cash extends peer-to-peer money transfer service to South Africa-Fintech
Chipper Cash, an African Fintech start-up, has expanded its peer-to-peer-soffeld service to South Africa. In addition to the use of the transfer service, South African users can buy, sell and transmit cryptocurrencies such as Bitcoin, Ethereum and USDC Stablecoin.
South Africa Ripe for disruption and innovation
according to A This quotes the VP of the start-up for strategy and partnerships in Africa, sorry mujakachi.
The report also quotes the VP, which reveals the fact that it "takes three days for a person in the USA to send money to South Africa", while on the other hand it takes up to 48 hours to transfer funds from one bank to another.
they are inefficiencies that users often lead to informal channels, argued Mujakachi. The VP also informed numbers of the estimated number of users who are forced to use such informal channels. He said:
In the end, people use informal channels to send money. If you look at the foreign transfers from South Africa, 68 % go over informal channels. Even with the domestic transfers, a considerable amount goes over the informal channel.
According to the Chipper Cash VP, such domestic transfers will be the starting point of the FinTech company in South Africa. However, only verified users may use this app.dominance of the old money transfer organizations
Chipper Cash, just like other Fintech start-ups, tries to claim a considerable part of the market share for cross-border transfers from established money transfer companies (MTO).
By offering lower transaction costs, Chipper Cash potentially has an opportunity to increase the market share of existing MTOs. However, it remains to be seen whether this mobile app will win over the financially excluded groups of South Africa. This is because some of these financially excluded groups not only have the necessary verification documents, but also have no access to devices that are necessary for the use of the mobile app.
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