share this on

TBD Partners with Chipper Cash to Enhance Global Cross-Border Payments in Africa

image-2

ACCRA, GHANA—In a significant move to revolutionize cross-border payments in Africa, TBD, a business unit of Block focused on open and decentralized technologies, has announced a strategic partnership with Chipper Cash, one of the continent’s largest financial technology firms. The collaboration, unveiled on Tuesday, aims to expand TBD’s network to 40 African countries, significantly boosting financial access and reducing transaction costs.

TBD, established just over two years ago by Block—formerly known as Square and co-founded by Jack Dorsey, the founder of Twitter—seeks to leverage its innovative technologies to connect individuals, businesses, and payment platforms globally. Mike Brock, CEO of TBD, emphasized the partnership’s potential during an interview in Accra, Ghana’s capital, highlighting its role in enhancing financial inclusion across Africa.

“Africa represents a vibrant, young population with immense potential for financial technology,” Brock stated. “Our collaboration with Chipper Cash enables us to offer our advanced technologies to a broader network, facilitating quicker and more cost-effective transactions.”

San Francisco-based Chipper Cash, which already serves 5 million customers across 21 African countries, sees the partnership as a vital step towards addressing the continent’s banking infrastructure challenges. Traditional money transfer methods, often hampered by lengthy customer identity protocols, can take several days to process transactions. In contrast, integrating TBD’s tbDEX protocol promises faster, more efficient cross-border payments.

“Remittances are a lifeline for many African families, but the costs of sending money to the continent remain among the highest globally,” said Maijid Moujaled, president and co-founder of Chipper Cash. “By plugging into tbDEX with numerous network participants, we believe we can collectively drive down these high costs.”

The tbDEX protocol is an open messaging platform that connects liquidity seekers with providers, enabling seamless transactions. It allows customers to transfer digital assets, which recipients can then convert into local currency via bank accounts or mobile wallets. Alternatively, recipients have the option to retain their value in dollars, Bitcoin, or Stablecoins, providing greater financial flexibility.

“TBD’s technologies bridge the gap between traditional financial systems and the emerging digital asset space,” Brock explained. “One of our main goals on the continent is to encourage engagement in that ecosystem—developers, fintechs, startups, banks, and institutions can use these technologies today.”

The partnership marks a significant step towards enhancing financial access and inclusion in Africa, offering a promising solution to the high costs and inefficiencies associated with traditional remittance channels.

© 2024 Bloomberg