Chipper Cash services still halted in the US

Over $53 billion flowed into Sub-Saharan Africa in 2022, with the United States contributing nearly a quarter of that amount, according to the World Bank. Recognising this significant inflow, Pan-African fintech company Chipper Cash entered the U.S. market in December 2022, offering the African diaspora a cost-effective way to send money back home.

"When I moved to the United States for school, my father could only send me money indirectly through his friend who lived in the U.S. That system was slow, frustrating, and was prone to fall apart at a moment’s notice," Maijid Moujaled, co-founder and president of Chipper Cash said during its US launch.

Following a year in the U.S. market, Chipper Cash achieved near-nationwide coverage. They secured money transmitter licenses in 80% of states, partnering with established banks to fill the gaps in the remaining 20%. However, their initial plan to acquire licenses in all states has been put on hold.

Chipper Cash has halted its international money transfer services from the United States, according to a report by The Information, a US-based tech publication. The fintech startup informed its users in January about pausing US operations due to a terminated bank partnership, said it will resume end of February. However, its services remain unavailable in the country at the time of this report.

Chipper Cash has not yet responded to our request for comment.

Despite reporting revenue exceeding $75 million in 2021 and projections between $100 million and $150 million for 2022, Chipper Cash faced challenges in late 2022. Documents shared by Financial Times revealed a 37.5% valuation decrease, from $2 billion to $1.25 billion, before the FTX bankruptcy. The startup also underwent several workforce reductions and the exit of senior executives during this period.

This is a developing story