How Chikwama Pay Is Building a Borderless Bank on WhatsApp

Money stops at the borders and many times people, they struggle to transact over the borders. We are creating a bank where you can move your money freely the same way as you move as a person. If you travel to another country, your money should be able to follow you without any issues. Welcome back to the Issuo Academy. Today we are in South Africa, shining a spotlight on one of the region's most exciting fintech stories. Chickwarma Pay. Chickwarma Pay has emerged as a dynamic force in digital payments offering mobile. First, WhatsApp based borderless, a neobank designed for everyday people and businesses that need fast, affordable and secure ways to transact. With me is Smangele Khumalo, the COO of Chick Pharma Pay. Welcome. Thank you. Thank you so much for having me. Thank you. You have been at the forefront of scaling the company's operations and driving its vision of financial inclusion through innovation. Welcome to the Issua Academy. Let's dive right in. Okay, cool. Thank you. Chickwarmapay story is so incredible. Smugele, let's start at the beginning. For those who may not know Chickwarmapay, probably very few people can you share a bit about the company's origins and what problems are you actually setting out to solve for your customers in the market? Okay, thank you for that. So Chikwamape was actually born to fix a problem, if I may put it that way. We have learned that money stops at the borders. And many times people, they struggle to transact, you know, over the borders. And some people, they want to save. Some people, they, they, they want to spend, you know, but it's not that easy. So as Chikwam, we easily, like I can say we cross border with our monies, if I may put it that way. So we built a borderless digital bank. Right? Right. On your phone. Right. So meaning wherever you go, you have your phone on your pocket, you have your money there. You can transact. You know, if you go to another country and you have WhatsApp, you can easily, you know, transact because we are actually on the phone. Yes. So basically that's how we are. We are creating a bank where, you know, you can move your money freely the same way as you move as a person. I mean, if you travel to another country, you. Your money should be able to follow you without any issues. Absolutely. So we are Chikwamba. I must say, what I love is that, I mean, every Single person has WhatsApp on their phone. Right? So you've really taken that inclusion piece and really said we'll use existing apps, we'll use existing infrastructure that customers are comfortable with and happy to use. Exactly. Because if you check, if I go to another country, sometimes you might find that my app does not work. But soon as I land in that country and I change my SIM card and put, you know, the network from that side, I'm able to access my WhatsApp. Exactly. And if I'm able to access my WhatsApp, then I can access my bank. Yeah. It's absolutely incredible. It's amazing. And, you know, when you look at it, payments is such a competitive space. What do you think has allowed chickwamapay to really stand out and build trust? We've spoken about WhatsApp. Yeah, I think one of the things that I've mentioned that, you know, some apps, they stop at one country, but when you have, like, a platform like WhatsApp, you can take it anywhere. And as Chikwama, we work across borders, safe, fast, you know, and affordable. So most of the time, you know that when you think of transacting over borders, you're thinking of the charges and all that. But as we are giving you that affordability to say, even if you are in another country, you can still, you know, transact freely, knowing that you will be charged the same amount that you will, you know, get. And then, like, you know, we revolt for Africa, but designed for a way our people live and trade. So that's who we are. And that's incredible because as South Africans, we do so much traveling across, you know, the rest of Africa, and, you know, that that's a real worry. I mean, sometimes I have it as well. I'm like, do I have data? Is it going to work? Do my. Are my apps going to work? You know, do I need cash? Like, this is so fantastic because you really are taking that borderless to the next level. It's so incredible. And one of the other things that I think is fantastic is how you guys are really driving financial inclusion using this. So when you look at a lot of fintechs in Africa talk about financial inclusion, but it can mean so many different things in practice. Right. What does financial inclusion look like to you at ChickWarmapay? Okay, so financial inclusion for us as Chickwarma, it means, you know, not just opening an account, but having a full digital bank in your pocket, a place to send or save or spend and grow as well. So whether you are in, like, Harare maybe in Zimbabwe, or you are in Maputo in Mozambique, or you are in Lilongwe, In Malawi, you know that, you know what, you are safe. You can. Yes. So everyone should have a bank without borders. I love that. A digital bank in your pocket. In your pocket. Exactly. Incredible. And really that is financial inclusion. That's how you make sure that it's accessible to everybody, everywhere. That's true. Incredible. Could you share some real life examples of how your solutions are changing, you know, day to day life for your users, whether it's an individual, an SME or actual communities. Okay, so I'll give a practical example. If a trader in, let's say maybe in Zimbabwe, they are able to, you know, pay a supplier in South Africa while they are there. And we also have, you know, people who are, let's say someone who's at school here and they still depend on their parents for financial, you know, assistance. So in that way it's easy for someone to actually, you know, send money this side instead of you having to be charged a whole lot of, you know, fees and all that. I can give you also a practical example. Recently I was in Malawi, right? So for me to transact there, it was so easy, you know, and there was a time where I needed more cash and I had to contact someone who's this side and they were able to actually send me money when, you know, and I was able to transact there, I was able to use my card and all that. So basically it's all about that we shouldn't be, you know, limited because of borders. So you can actually be able to support your family members while you are overseas knowing that the money will just come in just like that. And that's incredible because when you look at it, there are so many. So like the student use case I love because there are so many people either, you know, from other African countries studying, studying in South Africa and vice versa. But it's also corporate travel where it's like, oh, I'm going on a business trip, oh, we've run out of funds. Or you know, we've gone for an extra dinner, right? And you know, another thing, it helps you because you know, when you travel to a foreign country, what you do, you go and withdraw like 10,000. Now you know that when you get to the airport you're going to, you know, exchange. But now you know that you don't even have to do that. You have your Chikwama card and you can just transact like that. So it's also much safer, right? You don't need to walk around with cash anymore. And you know, another thing, remember the currency it's not the same. So when you go to a place, sometimes people will actually, they can even drop you in terms of the exchange. But now when you have your card, you don't even. You are safe. I love that. You know, we look at, you know, building and scaling innovation, it's never easy, especially in a diverse and highly regulated markets. Right. What have been some of the biggest operational or compliance challenges that you've had as a coo? One of the toughest challenges I've, you know, I've, I've encountered or had is that, remember, we are building over not only in South Africa, but we are moving, obviously, so the regulations are not the same. You know, you go to Zimbabwe, it's different. You go to Zambia, it's something else. You go to, you know, Mozambique, it's something else. So those were the challenges where now you have to adjust from what you know, you know, and then to the registrations and everything. So, yeah, I think that's one of the most biggest. But you know, what is good is that, you know, working closely with regulators and partners, like your pay methodology, it has actually helped us, you know, to make it possible or to scale it while we stay safe and compliant. Well, firstly, thank you. But the other thing is when you look at regulations and I must say, looking across Africa, what I'm so inspired by is that the regulators are now looking at digital payments differently. And as much as, yes, it's still very fragmented and we have a long way to go. But what's great is the regulators are now trying to help and say actually there's a better way of doing this. And how do regulators, you know, they're getting more involved in financial inclusion. They're also saying, how do they help fintech Bold. And so it's so great that you guys have overcome those challenges. It's an incredible story about just the growth of Africa, you know, and how all of the different markets, which are so incredibly different across the continent. But I think we all have one goal to say, create real financial inclusion, create safety, make it easy for Africans to transact in Africa. Exactly. I mean, the world is revolving, so we need such, you know, innovation. So. Yeah, absolutely. And I think honestly, it's going to get to a point where other regions learn from us. True. When you look at it, so how do you balance being innovative and agile while also making sure that you have the resilience and the security that payments require? So we as chikwamma, we are as fast as startup, but secure as a bank and we innovate for speed and simplicity. Right. And while our partners provide the strong backbones to keep every transaction safe. So yes, that's how we balance innovation and resilience. Absolutely. It's all about balance because yes, we have to care about security and you know, check those boxes. But at the same time, like you said, it's simplicity for customers. Right. Making it easy for to understand, especially in Africa where I think there's still a lot of education that we need to do around financial literacy. So I love that you guys are really looking at that balance and making it easy while also safe. Incredible. And I think you touched on your last question. So the next piece I want to look at is around partnerships and your ecosystem. So we often say that no fintech succeeds in isolation. Right. What role have partnerships played in, you know, your journey so far? So what I can say is that, you know, partnership actually makes the borderless, you know, possible for us. Especially when we talk about your pay mythology powers, you know, our core, they actually powers our core. So mobile operators connect us to people, right. And banks help us to grow trust. You know, we know that there are brands that, you know, bank banking brands that are trusted. So they actually help us to grow the trust. And then together we are creating Africa's first true borderless neobank. And you're so right. It takes so many different partners to capture different pieces of that ecosystem because Absolutely, you need a strong banking partner, you need a strong technical partner. With you guys, your mobile partners are key, right, with WhatsApp and you know, just the device penetration. So it's amazing that you guys have managed to bring all of these partners together in the right areas to bring out the best in your ecosystem. You know, when we look, look ahead, right? Where do you see additional opportunities for collaboration, whether it is still with additional banks, regulators or even other global players? Yeah, you know, future collaborations, I can say the future is about joining hands with banks that wants to reach new customers. I mean, it's no longer business as usual, you know. Yeah, I think everything has changed about banking. So regulators that want safe innovation and global fintechs that brings expertise. We believe in co creation, not competition. Co creation. I absolutely adore that because that's exactly what it's about. I mean, when you look at traditional banks and either, you know, older banks throughout Africa, right. They were never able to penetrate every single customer demographic. It was kind of top tier, middle tier, but not everyone had access. Right. And so you guys are really bringing in, you know, customers from every single level, every direction. I Can say yes, absolutely. Wonderful. And now looking forward. You know, the theme of this episode is powering local payments. And that's so strong. What does that phrase really mean to you personally? So personally, for me, it means building a global tool with a local heart and, you know, a new bank that feels like home no matter where you are. Simple, affordable, borderless, and it made for Africa. Oh, my gosh. Can I tell you, that entire response is going to be like my. That is the goal. And when you look at it, those are the things that customers, you know, really hold close because they want a bank that feels local. They want somebody who cares about them and their needs. And creating hyper personalization. I mean, you must be. If you are in another side of the country, you mustn't feel like you're a stranger. You know, even if you need help with your money or you walk into a bank, you should feel like, you know what, I'm home. And I know they will assist me to access my money and all that. So, yes. And it just builds that trust. Right. Because if I feel like I'm at home, if I feel like I'm getting the right level of service and the same consistent level of service, I feel like that trust and that loyalty just is, you know. Exactly. Yeah, absolutely. And finally, if we were to sit down, in five years time, what would success look like for Chickwarmapay for your customers and for Africa's payments ecosystem more broadly? My God, that one. So in five years, I would say Chikwamape will be to Africa what Revolut is to Europe. You know, Absolutely. Millions of people and businesses moving money across borders instantly, no hassle, you know, saving and growing through one simple app. We will be Africa's, you know, first true borderless digital bank. Incredible. You know what? I cannot wait to sit with you in five years time because I have no doubt that that is exactly what you guys are going. We are going there. I love that. And that brings us to the end, unfortunately, of this episode of the Issua Academy. A huge thank you to my guest, Smargele Khumalo, COO of ChickWarmapay, for sharing her journey and insights into building a payments platform with both local roots and global ambition. Catch you next time on the Issuo Academy. That wraps up today's episode of the Ishuo Academy, Pavementology's podcast to innovate, scale and provide impact. I hope you're leaving with fresh insights and actionable strategies to help you revolutionize your card programs and drive true impact in the world. If you've enjoyed today's conversation, please leave a review to help us reach more pioneers like you. Also, be sure to subscribe and follow us for more inspiring episodes and behind the scenes content from Paymentology. Until next time, I'm Merush and Aidu Keep innovating, keep scaling, and keep striving to make an impact.