Union54 Resurfaces with ChitChat Superapp After Overcoming Chargeback Setback

Zambian fintech startup, Union54 will make a remarkable comeback after a major chargeback fraud incident that led to a temporary halt in its operations. The African startup faced a $1.2 billion chargeback debacle last year, which forced it to cease authorising card payments on June 16 and ultimately shut down operations by June 30, via TechCrunch.

Union54 faced significant challenges when it discovered various issues related to cardholders and merchants. Instances included cardholders attempting to make purchases without sufficient funds, fraudulent chargeback requests by customers after receiving fulfilled orders, and unauthorised usage of Union54-powered cards.

These issues prompted merchants to contest chargeback claims and report Union54’s BIN (Bank Identification Number) to Mastercard. Consequently, Union54 had to halt its operations to address these concerns.

However, Union54 has now announced its partnership with Mastercard to launch ChitChat, a superapp aimed at tapping into Africa’s growing technology-savvy market. With secure messaging and innovative payment solutions, Union54 aims to regain momentum and provide a diverse range of services, including payments, gaming, dating, and food delivery.

This project, which is “expected to debut in September,” a Bloomberg report claims, will offer secure messaging alongside dollar-based virtual cards developed in partnership with Mastercard. These virtual cards will enable international transactions, boosting convenience and accessibility for users.

ChitChat aims to provide a wide range of services beyond secure messaging and payments. Union54 plans to incorporate gaming, dating, and food delivery services into the app. The deepening partnership with Mastercard allows ChitChat to integrate Mastercard’s payment solutions and USD Debit Card features.

Union54 and Mastercard have taken significant measures to address the chargeback issue, ensuring the security and trustworthiness of ChitChat. Gabriel Swanepoel, Country Manager of Mastercard South Africa, confirmed the extensive program implemented by Union54 to resolve the previous issues. Users of ChitChat can now transact with confidence, backed by the support and security provided by Mastercard.

The initial rollout of ChitChat’s card and payment features will be in beta mode, starting with Angola, Tanzania, and Ghana. However, Union54 plans to expand its reach to more African markets in the near future, capitalising on the continent’s growing technology adoption and appetite for innovative digital solutions.