Chipper Cash, a fintech startup serving Africa, launched its US remittance service in December 2022, aiming to ease money transfers for the African diaspora. However, the service has been halted since January, leaving many users without access.
The United States plays a crucial role in sending money back to Sub-Saharan Africa, contributing nearly a quarter of the $53 billion flow in 2022.
Chipper Cash recognized this opportunity but faced setbacks, including a terminated bank partnership, leading to the suspension of its US operations.
Initially, Chipper Cash made strides in the US market, achieving near-nationwide coverage and securing licences in 80% of states. However, plans to expand further were put on hold.
Despite reporting substantial revenue in 2021 and optimistic projections for 2022, Chipper Cash encountered challenges towards the end of 2022.
Financial documents revealed a significant valuation decrease, along with workforce reductions and the departure of senior executives.
While Chipper Cash promised to resume its US services by the end of February, users are still unable to access the platform.
The fintech startup has yet to comment on the situation, leaving many questioning its future in the US market.
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