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African fintech startup Chipper Cash raises $30M backed by Jeff Bezos

African cross-border fintech startup Chipper Cash has raised a $30 million Series B funding round led by Ribbit Capital with participation of Bezos Expeditions — the personal VC fund of Amazon CEO Jeff Bezos.

Chipper Cash was founded in San Francisco in 2018 by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled. The company offers mobile-based, no fee, P2P payment services in seven countries: Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya.

Parallel to its P2P app, the startup also runs Chipper Checkout — a merchant-focused, fee-based payment product that generates the revenue to support Chipper Cash’s free mobile-money business. The company has scaled to 3 million users on its platform and processes an average of 80,000 transactions daily. In June 2020, Chipper Cash reached a monthly payments value of $100 million, according to CEO Ham Serunjogi .

As part of the Series B raise, the startup plans to expand its products and geographic scope. On the product side, that entails offering more business payment solutions, crypto-currency trading options, and investment services.

“We’ll always be a P2P financial transfer platform at our core. But we’ve had demand from our users to offer other value services…like purchasing cryptocurrency assets and making investments in stocks,” Serunjogi told TechCrunch on a call.

Image Credits: Chipper Cash

Chipper Cash has added beta dropdowns on its website and app to buy and sell Bitcoin and invest in U.S. stocks from Africa — the latter through a partnership with U.S. financial services company DriveWealth.

“We’ll launch [the stock product] in Nigeria first so Nigerians have the option to buy fractional stocks — Tesla shares, Apple shares or Amazon shares and others — through our app. We’ll expand into other countries thereafter,” said Serunjogi.

On the business financial services side, the startup plans to offer more API payments solutions. “We’ve been getting a lot of requests from people on our P2P platform, who also have business enterprises, to be able to collect payments for sale of goods,” explained Serunjogi.

Chipper Cash also plans to use its Series B financing for additional country expansion, which the company will announce by the end of 2021.

Jeff Bezos’s backing of Chipper Cash follows a recent string of events that has elevated the visibility of Africa’s startup scene. Over the past decade, the continent’s tech ecosystem has been one of the fastest growing in the world by year year-over-year expansion in venture capital and startup formation, concentrated in countries such as Nigeria, Kenya, and South Africa.

Image Credits: TechCrunch/Bryce Durbin

Bringing Africa’s large unbanked population and underbanked consumers and SMEs online has factored prominently. Roughly 66% of Sub-Saharan Africa’s 1 billion people don’t have a bank account, according to World Bank data.

As such, fintech has become Africa’s highest-funded tech sector, receiving the bulk of an estimated $2 billion in VC that went to startups in 2019. Even with the rapid venture funding growth over the last decade, Africa’s tech scene had been performance light, with only one known unicorn (e-commerce venture Jumia) a handful of exits, and no major public share offerings. That changed last year.

In April 2019, Jumia — backed by investors including Goldman Sachs and Mastercard — went public in an NYSE IPO. Later in the year, Nigerian fintech company Interswitch achieved unicorn status after a $200 million investment by Visa.

This year, Network International purchased East African payments startup DPO for $288 million and in August WorldRemit acquired Africa focused remittance company Sendwave for $500 million.

One of the more significant liquidity events in African tech occurred last month, when Stripe acquired Nigerian payment gateway startup Paystack for a reported $200 million.

In an email to TechCrunch, a spokesperson for Bezos Expeditions confirmed the fund’s investment in Chipper Cash, but declined to comment on further plans to back African startups. Per Crunchbase data, the investment would be the first in Africa for the fund. It’s worth noting Bezos Expeditions is not connected to Jeff Bezo’s hallmark business venture, Amazon.

For Chipper Cash, the $30 million Series B raise caps an event-filled two years for the San Francisco-based payments company and founders Ham Serunjogi and Maijid Moujaled. The two came to America for academics, met in Iowa while studying at Grinnell College and ventured out to Silicon Valley for stints in big tech: Facebook for Serunjogi and Flickr and Yahoo! for Moujaled.

Chipper Cash founders Ham Serunjogi (R) and Maijid Moujaled; Image Credits: Chipper Cash

The startup call beckoned and after launching Chipper Cash in 2018, the duo convinced 500 Startups and Liquid 2 Ventures — co-founded by American football legend Joe Montana — to back their company with seed funds. The startup expanded into Nigeria and Southern Africa in 2019, entered a payments partnership with Visa in April and raised a $13.8 million Series A in June.

Chipper Cash founder Ham Serunjogi believes the backing of his company by a notable tech figure, such as Jeff Bezos (the world’s richest person), has benefits beyond his venture.

“It’s a big deal when a world class investor like Bezos or Ribbit goes out of their sweet spot to a new area where they previously haven’t done investments,” he said. “Ultimately, the winner of those things happening is the African tech ecosystem overall, as it will bring more investment from firms of that caliber to African startups.”

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Google Pay gets a major redesign with a new emphasis on personal finance

Google is launching a major redesign of its Google Pay app on both Android and iOS today. Like similar phone-based contactless payment services, Google Pay — or Android Pay as it was known then — started out as a basic replacement for your credit card. Over time, the company added a few more features on top of that but the overall focus never really changed. After about five years in the market, Google Pay now has about 150 million users in 30 countries. With today’s update and redesign, Google is keeping all the core features intact but also taking the service in a new direction with a strong emphasis on helping you manage your personal finances (and maybe get a deal here and there as well).

Google is also partnering with 11 banks to launch a new kind of bank account in 2021. Called Plex, these mobile-first bank accounts will have no monthly fees, overdraft charges or minimum balances. The banks will own the accounts but the Google Pay app will be the main conduit for managing these accounts. The launch partners for this are Citi and Stanford Federal Credit Union.

Image Credits: Google

“What we’re doing in this new Google Pay app, think of it is combining three things into one,” Google director of product management Josh Woodward said as he walked me through a demo of the new app. “The three things are three tabs in the app. One is the ability to pay friends and businesses really fast. The second is to explore offers and rewards, so you can save money at shops. And the third is getting insights about your spending so you can stay on top of your money.”

Paying friends and businesses was obviously always at the core of Google Pay — but the emphasis here has shifted a bit. “You’ll notice that everything in the product is built around your relationships,” Caesar Sengupta, Google’s lead for Payments and Next Billion Users, told me. “It’s not about long lists of transactions or weird numbers. All your engagements pivot around people, groups, and businesses.”

It’s maybe no surprise then that the feature that’s now front and center in the app is P2P payments. You can also still pay and request money through the app as usual, but as part of this overhaul, Google is now making it easier to split restaurant bills with friends, for example, or your rent and utilities with your roommates — and to see who already paid and who is still delinquent. Woodward tells me that Google built this feature after its user research showed that splitting bills remains a major pain point for its users.

In this same view, you can also find a list of companies you have recently transacted with — either by using the Google Pay tap-and-pay feature or because you’ve linked your credit card or bank account with the service. From there, you can see all of your recent transactions with those companies.

Image Credits: Google

Maybe the most important new feature Google is enabling with this update is indeed the ability to connect your bank accounts and credit cards to Google Pay so that it can pull in information about your spending. It’s basically Mint-light inside the Google Pay app. This is what enables the company to offer a lot of the other new features in the app. Google says it is working with “a few different aggregators” to enable this feature, though it didn’t go into details about who its partners are. It’s worth stressing that this, like all of the new features here, is off by default and opt-in.

Image Credits: Google

The basic idea here is similar to that of other personal finance aggregators. At its most basic, it lets you see how much money you spent and how much you still have. But Google is also using its smarts to show you some interesting insights into your spending habits. On Monday, it’ll show you how much you spent on the weekend, for example.

“Think of these almost as like stories in a way,” Woodward said. “You can swipe through them so you can see your large transactions. You can see how much you spent this week compared to a typical week. You can look at how much money you’ve sent to friends and which friends and where you’ve spent money in the month of November, for example.”

This also then enables you to easily search for a given transaction using Google’s search capabilities. Since this is Google, that search should work pretty well and in a demo, the team showed me how a search for ‘Turkish’ brought up a transaction at a kebab restaurant, for example, even though it didn’t have ‘Turkish’ in its name. If you regularly take photos of your receipts, you can also now search through these from Google Pay and drill down to specific things you bought — as well as receipts and bills you receive in your Gmail inbox.

Also new inside of Google Pay is the ability to see and virtually clip coupons that are then linked to your credit card, so you don’t need to do anything else beyond using that linked credit card to get extra cashback on a given transaction, for example. If you opt in, these offers can also be personalized.

Image Credits: Google

The team also worked with the Google Lens team to now let you scan products and QR codes to look for potential discounts.

As for the core payments function, Google is also enabling a new capability that will let you use contactless payments at 30,000 gas stations now (often with a discount). The partners for this are Shell, ExxonMobil, Phillips 66, 76 and Conoco.

In addition, you’ll also soon be able to pay for parking in over 400 cities inside the app. Not every city is Portland, after all, and has a Parking Kitty. The first cities to get this feature are Austin, Boston, Minneapolis, and Washington, D.C., with others to follow soon.

It’s one thing to let Google handle your credit card transaction but it’s another to give it all of this — often highly personal — data. As the team emphasized throughout my conversation with them, Google Pay will not sell your data to third parties or even the rest of Google for ad targeting, for example. All of the personalized features are also off by default and the team is doing something new here by letting you turn them on for a three-month trial period. After those three months, you can then decide to keep them on or off.

In the end, whether you want to use the optional features and have Google store all of this data is probably a personal choice and not everybody will be comfortable with it. The rest of the core Google Pay features aren’t changing, after all, so you can still make your NFC payments at the supermarket with your phone just like before.

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CVS becomes first national retailer to offer support for PayPal and Venmo QR codes at checkout

PayPal announced this morning that its customers can now use either PayPal or Venmo QR codes when checking out at over 8,200 CVS retail stores across the U.S. This is the first national retailer to integrate PayPal’s QR code checkout technology at point-of-sale, the company noted. The additional checkout option will also expand the number of ways customers can pay “touch-free” at CVS — a way to transact that’s become increasingly popular as the coronavirus outbreak continues to spread across the country.

CVS and PayPal announced their plans to cooperate on a point-of-sale solution back in July. At the time, they pegged the timeframe for the rollout as sometime in Q4 2020.

The QR code checkout process itself will pull the funds needed for the purchase from the customer’s existing PayPal or Venmo account balance, bank account, or from a debit or credit card, just as it would if the transaction was taking place online. Venmo users will additionally have the option to utilize their Venmo Rewards.

Image Credits: PayPal

The transaction does not include any fees, PayPal says. Plus, CVS’ ExtraCare Rewards Program members will still be able to redeem and apply savings using their ExtraCare account when using PayPal’s QR code checkout.

The entire transaction can be touch-free, as it involves QR code scanning as opposed to using a card that has to be swiped or inserted into a terminal or numbers punched into a keypad.

The new option arrives at a time when CVS says it’s seeing increased demand for contactless payments.

Since January, CVS has seen a 43% increase in touch-free transactions, according to data from Forrester. In addition, 11% of the U.S. population says they’re now using a digital payment method for the first time as a result of the pandemic, PayPal noted. The company’s own research also indicated that 57% of consumers said merchants’ digital payment offerings impacted their decisions to shop in their stores.

To use the new QR code checkout option, customers will first launch either their PayPal or Venmo app, click the “Scan” button, then select the “show to pay” option.

The new checkout experience was made possible through PayPal’s partnership with payments technology provider InComm, which distributed the PayPal QR code technology through its cloud-based software updates to make the feature available at point-of-sale.

While CVS is the first national retailer to rollout PayPal’s QR code checkout, PayPal said it has 10 other major retailers signed up for a similar rollout, including Nike, Tumi, Bed Bath & Beyond, and Samsonite, among others. It’s in discussions with well over 100 large retailers about the technology, as well.

“The launch of PayPal and Venmo QR codes in CVS Pharmacy stores will not only provide health-conscious customers with a touch-free way to pay at checkout, but also brings the safety and security of PayPal and Venmo transactions into the store with shoppers,” said Jeremy Jonker, PayPal Senior Vice President Head of Consumer In-Store and Digital Commerce, in a statement. “We are thrilled that PayPal and Venmo QR codes will help to maintain the safety of CVS customers and employees, especially in the essential pharmacy retail environment as we go into the winter months.”

In addition to the CVS news, PayPal today also noted that its recently announced “Pay in 4” option for splitting purchases across four installments is now fully live across millions of retailers.

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