When you need to send money to someone or accept money from them, you have a plethora of digital options at your disposal.
How to wisely choose one over the other is largely dependent on the types of transactions you want to conduct and the parties with whom you want to exchange funds.
Several mobile payment apps and peer-to-peer payment tools can help you send and receive money quickly.
You may be most familiar with Chipper Cash and Kuda, two of the most popular apps on the market.
If you’re trying to decide between these two services, it’s helpful to understand how they work and the advantages and disadvantages of each.
What is kuda?
Kuda, formerly known as Kudi Money, is a London-based start-up and digital-only bank that has been operating in Nigeria since 2017.
In 2019, it was renamed Kuda Bank, Babs Ogundeyi and Musty Mustapha founded it.
The Central Bank of Nigeria has licensed the bank as Nigeria’s first mobile-only bank (CBN). It is currently authorized to provide microfinance and mobile banking services.
What is Chipper Cash?
Chipper Cash is a financial services company that offers a software application platform that enables free instant cross-border mobile money transfers.
Although electronic payments are rapidly expanding in Nigeria (and throughout Africa), sending and receiving money across borders remains difficult.
However, thanks to Chipper Cash, money transfers to other African countries can now be done instantly (and for free!) with the click of a button.
Sending money is as easy as receiving it with Chipper Cash. The conversion/exchange rates are also very reasonable and competitive.
Aside from money transfers, Chipper Cash can also be used to pay bills (cable TV, internet, and electricity) and purchase airtime.
Chipper Cash vs Kuda: Transaction fee
Below is the transaction fee or what it cost to use either of the mobile money platform to send and receive money online.
Kuda Exchange Transaction Fee
Kuda Bank, the London-based, Nigerian-operating startup that is taking on incumbents in the country with a mobile-first, personalized, and often cheaper set of banking services built on newer, API-based infrastructure, has raised another round of funding to fuel its expansion.
If you sign up with your Bank Verification Number(BVN), you will receive 25 free transfers each month.
If you sign up without your BVN, you will receive two free transfers per month. Extra transfers will cost you 10 naira each.
Everything else is free, including using your account, using your Kuda Card, and withdrawing cash from KUDA’s partner ATMs.
When you top up your account, pay bills, send transfers, or withdraw from ATMs, there are no hidden fees.
Kuda Bank was known for not charging bank fees, but in July 2022, it implemented a 50 naira fee on deposits of 10,000 naira or more, earning significant support from 2020 End SARS protesters due to their contributions to the protests.
Chipper Cash Transaction Fee
Chipper Cash is a free mobile app that allows users to send money within and outside of their home country in Africa.
You can also receive money from other countries by using Chipper Cash at a low currency conversion rate.
Transfers are free on the chipper app, regardless of the amount or location to which you are sending.
When making payments across borders with different currencies, live and current exchange rates are used to process the transfers.
The app displays the exchange rates without any commissions.
Transfer money between Chipper Cash and any bank or mobile money account for free!
Chipper Cash vs Kuda: Brand Location
Here, we are going to be covering the brand location of the two platforms, see which ones has more branches than the other.
Kuda Bank is a London-based, Nigerian-operated financial technology (fintech) company that is taking the country by storm.
Kuda Bank employs 365 people in two locations; Nigeria and the United Kingdom.
Only 9 countries currently offer Chipper Cash, but the company’s management has promised on their website that more will be added soon.
Countries that accept Chipper Cash include:
- South Africa
- United Kingdom
- United States of America
Chipper Cash vs Kuda: Currency Support
This focuses on the currency that’s been used on both of the platforms
Kuda Bank is not a multi-currency account. Your account will only store and use Nigerian naira.
However, KudaBank (or Kuda) has been incorporating some really cool features into their product.
In contrast to other Nigerian banks, and recently released a feature that enables you to process Payoneer payments directly to your KudaBank account.
This is significant because Nigerians can now open Payoneer accounts and use the KudaBank app and website to receive payments from abroad.
Payoneer makes receiving international payments from clients outside of Nigeria simple for freelancers.
Payoneer allows you to receive USD, EUR, GBP, and other currencies from all over the world for a low fee.
This is fantastic, but it is not very smooth, and it takes a day or more to receive your money in your Nigerian account when you withdraw from Payoneer to your Nigerian bank account.
This is where KudaBank comes into play. However, you can’t receive foreign currency in your Kuda Bank account through Payoneer.
Your payments will be converted to Nigerian naira at the Payoneer exchange rate and deposited into our KudaBank account.
Chipper cash can be used to receive and send money in most African countries, regardless of currency. You can also receive funds from other countries at a low and affordable currency exchange rate.
Despite the fact that it is not as functional as PayPal and only operates in nine countries, Chipper Cash is one of Africa’s best Fintech companies.
Chipper Cash vs Kuda: Which one is Faster
When you make transfers, you want to make sure your payment gets to where its going very quickly. So in this section, we’ll be looking at how fast both platforms is.
Cross-border transfers are just as quick as domestic transfers.
Send and receive money quickly and easily. Transfer money around town and across Africa using your mobile phone using Chipper Cash.
Sending money with Chipper Cash is simpler than with some African bank apps and e-wallets.
Chipper performs transfers in real time. Depending on the bank, it could take a few minutes to enter your recipient’s mobile money account or up to two working days.
All you have to do is enter your kuda account number and pay for the amount you want to load.
The Kuda app can generate a one-of-a-kind Kuda Payment Link that you can send to anyone who has a smartphone.
Once the payment link is claimed, the funds will be transferred to the recipient’s account.
KUDA has also partnered with Payoneer to provide a quick and affordable way to receive international business payments with your Kuda account.
All you have to do is set up a new Payoneer account or connect your existing one on Kuda.
Chipper Cash vs Kuda: Ease of use, Accessibility & Security?
Let’s look at how easy to use the platform is and also look at the security put in place to protect their users.
Kuda Microfinance Bank Kuda Bank is a microfinance fintech that is safe, regulated, and licensed by the CBN.
Despite the fact that some of its services could be improved, it is not a scam, and deposits are insured by the NDIC.
Kuda Bank, founded in Lagos, is insured by the Nigerian Deposit Insurance Corporation (NDIC).
In the event of bankruptcy or disaster, outstanding amounts in your bank account up to 200,000 naira will be protected.
In terms of efficiency, the bank’s flexibility has both surprised and excited its customers.
A significant aspect of this is that your Kuda card will be delivered to your door; no other bank does this.
There is also a 250,000 naira limit on a single transfer, a 1 million naira daily limit, a 500,000 naira POS limit, and a 30,000 naira ATM withdrawal limit.
Chipper Cash is a safe app, so your money and account are protected.
The app requires Two-Step Authentication before you can log back into your Chipper wallet account (via SMS).
A Security Lock feature requires you to enter your Chipper PIN every time you close and reopen the app.
Your payment information and personal data are encrypted at Chipper Cash to protect you from unauthorized activities and to provide a secure platform for sending and receiving cash.
Chipper Cash encrypts your payment information and personal data to protect you from unauthorized transactions and to provide a secure platform for sending and receiving cash.
Chipper Cash vs Kuda: Net Worths
Here we”ll be looking at the net worth value of both platforms. While using any, you want to be sure the platform is got you covered with its reservered.
Kuda Bank raised $55 million in a Series B round at a $500 million valuation. This comes only a few months after the company raised a $25 million Series A round.
Using the central bank’s official exchange rate of 411.50 to $1, the company’s naira value is 205.75 billion at the current $500 million valuation.
Kuda Bank is Nigeria’s seventh most valuable bank, worth more than all tier 2 banks combined.
The Central Bank of Nigeria has licensed the bank as Nigeria’s first mobile-only bank (CBN).
It is currently authorized to provide microfinance and mobile banking services.
It was valued at more than $500 million, and in August 2021, it raised more than $55 million in Series B funding.
Chipper cash registered users increased from around two million in 2020 to more than five million by the end of 2021.
One-third of its 350 employees are based in the United States. $280 million in funding from Deciens Capital, FTX Ribbit Capital, and others.
The most recent valuation: $2.2 billion.
Similarities between Chipper cash and Kuda
|Transfers are free on the chipper app, regardless of the amount or location to which you are sending.||Everything else is free, including using your account, using your Kuda Card, and withdrawing cash from KUDA’s partner ATMs.|
|Free account opening||Free account opening|
|No In App purchases||No In App purchases|
Chipper Cash vs Kuda: Customer Reviews
Below are reviews we’ve been able to gather online from real users using the platform. This will further guide you to know which platform is more loved by its users.
On Google Play Store, Chipper Cash has a rating of 4.2 from over 73,206 reviews.
With all its ratings and reviews, Chipper cash is doing just Good…
I went through all the feedback on the app and I got to the conclusion that Chipper Cash is convenient, it’s a cross-border payments app, where over 3 million people send & receive money.
On Google Play Store, Kuda has a rating of 4.4 from over 158, 113 reviews.
With all its ratings and reviews, Kuda is a fantastic digital bank and mobile app that is fully licensed and regulated by Nigeria’s Central Bank.
Despite its youth, the Lagos-based company has earned the trust (8.1/10) of over 1.4 million customers.
The app not only provides high-quality services (7.6/10) that assist account holders in saving money, earning savings interest, and tracking their budgets, but it also has a very low fee schedule (10/10).