ChitChat, a Zambian social commerce platform known for its built-in USD digital wallets, has partnered with Mastercard to launch new virtual debit cards designed to enhance cross-border payments. This collaboration marks a significant step in simplifying and streamlining financial transactions across borders.
The partnership follows a previous collaboration between Union54 and Mastercard, which launched ChitChat in March 2024. This development came in response to a major $1.2 billion chargeback fraud attempt that had forced Union54 to pause its services. The new virtual debit cards introduced by ChitChat aim to replace traditional banking processes, such as lengthy bank visits and extensive paperwork, with efficient in-app transactions.
The virtual cards enable users to store funds in multiple currencies, offering protection against local currency fluctuations and inflation. This feature is particularly valuable for managing cross-border transactions, making it easier for users to navigate financial interactions in a global context.
ChitChat’s integration of virtual cards allows users to handle transactions, shop online, pay for subscriptions, and transfer funds across Africa in real time—all within the ChitChat messaging interface. This seamless functionality highlights the platform’s commitment to enhancing user convenience and financial accessibility.
Launched in 2024, ChitChat has rapidly expanded its services to countries including Zambia, Ghana, Tanzania, and Angola. The platform aims to broaden its reach by extending remittances to China, India, Zimbabwe, and South Africa, with a target of over 30 countries by the end of 2024. This expansion is poised to drive economic growth and promote financial inclusion across the continent.
Perseus Mlambo, CEO of ChitChat, emphasized that this integration with Mastercard will transform everyday financial interactions, creating new economic opportunities throughout Africa. Gabriel Swanepoel, Country Manager at Mastercard, highlighted the partnership’s role in empowering digital commerce through multi-use, omnichannel payment solutions. As Africa’s eCommerce industry is projected to reach $75 billion by 2025, social commerce platforms like ChitChat are set to play a pivotal role in this growth.
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