ChitChat, a Zambian social commerce platform, has partnered with Mastercard to introduce virtual debit cards. They are aimed at enhancing cross-border payments.
This development follows a previous partnership between Union54 and Mastercard. It led to the launch of ChitChat in March 2024 after Union54 encountered a $1.2 billion chargeback fraud attempt.
The new virtual debit cards expedite cross-border transactions. They replace the need for lengthy bank visits, extensive paperwork, and high fees with instant in-app transactions.
Users can now store funds in multiple currencies, protecting against local currency fluctuations and inflation.
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A One-Stop Solution for Financial Transactions
Additionally, ChitChat’s integration with Mastercard allows users to transact and shop online. They will also pay for subscriptions, and transfer funds across Africa in real time—all through the ChitChat app.
This platform facilitates instant money transfers and expense coordination directly within its interactive chat functionality.
Currently, ChitChat serves users in Zambia, Ghana, Tanzania, and Angola. By July 2024, the platform will expand remittance services to China, India, Zimbabwe, and South Africa.
This is in an aim to reach over 30 countries by the end of the year. This expansion also positions ChitChat to drive economic growth and promote financial inclusion across the continent.
Perseus Mlambo, CEO of ChitChat, emphasized that the platform’s integration with global markets through secure, convenient transactions will transform everyday interactions and create new economic opportunities in Africa.
Gabriel Swanepoel, Country Manager at Mastercard, noted that the partnership will enhance operational efficiency and support a seamless transition into digital commerce.
Africa’s eCommerce industry is projected to reach $75 billion by 2025, with social commerce playing a significant role in this growth. Social commerce platforms like Kenya’s Chpter and Sukhiba Connect are also expanding operations, contributing to the booming market.