African businesses and individuals could soon save millions on money transfers as Stable joins forces with Chipper Cash to build the continent’s fastest payment network. The partnership promises to slash transfer costs from the current 8.16% average to under 2% while delivering funds in seconds instead of days.
Seven Million Users Get Access to Instant Dollar Transfers
Stable announced the collaboration on December 10, bringing its specialised blockchain technology to Chipper Cash’s seven million customers across nine African countries. The integration allows users to send and receive USDT stablecoins with near-instant settlement and minimal fees.
Ham Serunjogi, CEO of Chipper Cash, said the partnership enhances their mission to provide seamless financial services across Africa. “By integrating Stable’s institutional-grade blockchain built for stablecoins, we are further enhancing our payment offerings and empowering our customers with greater access to global funds,” Serunjogi explained.
Blockchain Built Specifically for Dollar Payments
Unlike traditional cryptocurrencies that use volatile tokens for transaction fees, Stable operates as a Layer 1 blockchain powered entirely by USDT as both the payment method and gas token. This design eliminates the friction of converting between different digital assets while maintaining stable pricing.
Brian Mehler, CEO of Stable, emphasised their focus on real-world utility. “We are excited to collaborate with Chipper Cash and contribute to the growing ecosystem of digital finance in Africa,” Mehler stated. “Together, we can accelerate the adoption of stablecoins and improve the payment experience for millions of customers.”
The blockchain receives backing from major investors, including Bitfinex, PayPal Ventures, and Franklin Templeton. Its architecture prioritises speed and usability over complex features, targeting sub-second transaction finality.
African Payment Networks Face Expensive Legacy Systems
Traditional remittance services charge African recipients some of the world’s highest fees. The World Bank reports that sending $200 to Sub-Saharan Africa costs an average of $16.32 through conventional channels, compared to under $4 using digital alternatives.
These high costs stem from multiple intermediary banks, currency conversions, and regulatory compliance requirements that add layers of expense. A typical international wire transfer can pass through three to five different financial institutions before reaching its destination.
Mobile money providers offer cheaper alternatives but still charge around 5.4% for cross-border transactions as of 2024. The lack of direct connections between African payment networks forces most transfers through expensive correspondent banking relationships.
Chipper Cash Expands Beyond Basic Money Transfers
Founded in 2018 by Ham Serunjogi and Maijid Moujaled, Chipper Cash started as a peer-to-peer money transfer app but has evolved into a comprehensive financial platform. The company now offers virtual cards, investment products, and business payment solutions across its network.
The partnership with Stable represents Chipper’s latest move to reduce dependency on traditional banking infrastructure. Earlier in 2024, the company integrated with TBD’s tbDEX protocol and formed alliances with Ripple for crypto-enabled payments.
Chipper Cash operates in Ghana, Kenya, Nigeria, Rwanda, South Africa, Tanzania, Uganda, Cameroon, and Gambia. The company expanded into the United States market to serve the African diaspora community sending money home.
Implementation Timeline and Market Impact
Users will access USDT transfers through Chipper’s existing mobile app interface without needing separate blockchain knowledge. The platform handles all technical complexity while providing familiar payment experiences.
Success could position both companies to capture significant market share as Africa’s remittance flows continue expanding. The World Bank projects African remittances will exceed $100 billion annually by 2025, creating substantial revenue opportunities for efficient payment providers.
