ChitChat, a social commerce platform hailing from Zambia, has recently announced a strategic collaboration with Mastercard to roll out new virtual debit cards, enhancing the process of making cross-border payments. This initiative is a progression from an earlier alliance between Union54 and Mastercard, which culminated in the introduction of ChitChat in March 2024. The launch followed a significant setback for Union54, which had to suspend its operations due to a massive chargeback fraud attempt amounting to $1.2 billion.
According to a recent statement, the introduction of ChitChat’s virtual card is set to revolutionize cross-border payments by offering a streamlined solution. This innovation aims to eliminate the need for time-consuming visits to banks, exhaustive paperwork, and exorbitant fees, replacing them with instantaneous transactions that can be performed directly within the app.
The platform empowers users to hold funds in various currencies, thereby providing a safeguard against the volatility of local currencies and the impact of inflation. It also facilitates easier and more efficient cross-border transactions.
Through this partnership, ChitChat users will gain access to a comprehensive digital ecosystem where they can engage in online shopping, manage subscriptions, and execute real-time fund transfers across the African continent, all integrated within the app’s messaging interface.
ChitChat was launched in 2024 as a product of Union54’s expertise in digital financial services, in collaboration with Mastercard. The platform is designed to allow users to seamlessly send money to one another’s digital wallets during chat conversations.
One of the key features of ChitChat is its interactive chat functionality, which enables users to manage shared expenses and conduct immediate fund transfers using the virtual card, all within the chat environment, thus ensuring a smooth and hassle-free financial experience.
ChitChat, a social commerce platform with a presence in multiple African countries such as Zambia, Ghana, Tanzania, and Angola, has announced plans to broaden its remittance services. In July 2024, the platform confirmed its expansion into key markets including China, India, Tanzania, Zimbabwe, and South Africa, with an ambitious target to extend its reach to over 30 countries globally by the end of the year.
This expansion is poised to significantly contribute to economic development, foster entrepreneurship, and enhance financial inclusivity across the African continent.
Perseus Mlambo, the CEO of ChitChat, emphasized the platform’s potential to bridge local economies with the global marketplace through a secure and user-friendly chat interface. He believes that the ability to execute instant transactions via chat will revolutionize daily interactions and unlock new economic prospects throughout Africa.
Echoing this sentiment, Gabriel Swanepoel, the Country Manager at Mastercard, commented on the collaboration with ChitChat. He expressed Mastercard’s commitment to equipping the platform with versatile, omnichannel digital payment solutions that not only boost operational efficiency but also facilitate a smooth transition into the realm of digital commerce for their consumers.
The e-commerce sector in Africa is on a trajectory to hit a valuation of $75 billion by 2025, with social commerce expected to play a pivotal role in this surge. In line with this trend, other social commerce platforms in the region, such as Kenya’s Chpter and Sukhiba Connect, have also secured funding to scale up their operations, tapping into the burgeoning market.
