Union54 and MasterCard team up to launch social commerce platform ChitChat with built-in USD digital wallets in Zambia. Union54 and MasterCard have joined forces to introduce ChitChat, a social commerce platform tailored for users in Zambia.
ChitChat offers a unique chat platform equipped with integrated USD digital wallets, enabling seamless transactions within the app.
Union54 and MasterCard Launch ChitChat
ChitChat users in Zambia will soon enjoy the convenience of transferring money directly within their chats using digital wallets, along with the added benefit of accessing dollar debit cards by Q2 2024.
This upgrade will allow for in-person transactions using the ChitChat card, expanding its usability as a payment method. Additionally, ChitChat plans to introduce new features like group wallets in the future.
The platform enables users to seamlessly transfer funds between wallets and convert USD to Kwacha, Zambia’s currency, within the app itself. Perseus Mlambo, CEO of Union54, emphasized the importance of creating a “safe, secure, and sovereign” platform for social commerce with the introduction of ChitChat. He envisions ChitChat becoming a catalyst for commerce across Africa, serving as a solid foundation for future developments.
How This Collaboration Works
By integrating communication, financial transactions, and bill payment into a single platform, ChitChat has the potential to drive economic growth, foster entrepreneurship, and promote financial inclusion throughout the continent.
Union54’s collaboration with MasterCard enables ChitChat to offer card and payment features in beta for Angola, Tanzania, and Ghana, with plans for further expansion.
Union54’s Challenges after Ceasing Services Due To an Attempted $1.2 Billion Chargeback Fraud
However, Union54 faced challenges after ceasing services due to an attempted $1.2 billion chargeback fraud, prompting African startups reliant on its card-issuing services to seek alternative solutions. Despite setbacks, MasterCard views this partnership as a significant step toward enhancing financial inclusion in African markets.
Zambia’s eCommerce market, though smaller in scale, is projected to experience steady growth, reaching an estimated market volume of US$184.4 million by 2028, with a predicted CAGR of 9.8% from 2024 to 2028.
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