TechPression

Tag: Bitmama

  • Bitmama suspends card services due to unresolved issues with Mastercard

    Bitmama suspends card services due to unresolved issues with Mastercard

    Bitmama, a crypto-fiat exchange that allows traders to buy and sell Bitcoin, Ethereum, Celo and other digital assets, has paused its card services because of unresolved issues with its Mastercard provider, adding to a growing list of fintechs dealing with similar challenges.

    In an announcement to its users on Saturday, Bitmama explained that it was a difficult but necessary decision.

    Read also: South Africa licenses Yellow Card as a regulated crypto service provider

    Card balances refunded to Bitmama users’ wallets

    The business promised to credit customers’ Bitmama wallets with the full amount of their card balances.

    The statement reads, “We would like to update you on an important decision we made to prioritise your experience and security. Due to unforeseen issues with our Mastercard virtual card provider, we decided to pause our partnership with them. This wasn’t an easy choice but we know it was the right one to protect you.”

    “Over the past few months, we worked tirelessly with the provider to reconcile all card transactions and balances. Today, we are happy to let you know that every Mastercard balance has been liquidated and refunded to your wallet on Bitmama,” it adds.

    Bitmama assured customers of their safety

    The company emphasised its commitment to prioritising customer safety and maintaining a positive user experience.

    “This wasn’t an easy choice, but it was the right one to ensure your safety and maintain the trust you’ve placed in us.”

    “Thank you for sticking with us—we’re here to make your crypto experience as seamless and secure as possible!” it assured.

    Other fintech companies facing similar issues

    Other fintech companies such as Rise and Carbon, have taken similar steps in response to exchange rate instability and provider issues, having previously suspended their card services.

    According to Adedeji Olowe, CEO of Lendsqr, these suspensions are also being caused by high expenses and little opportunity for revenue.

    A significant virtual card provider, Union54, also suspended operations in 2022 as a result of an increase in chargeback fraud, while startups like Chipper Cash have faced declined transactions due to insufficient funds, which has resulted in a ₦500 fee for such cases.

    Read also: Telegram sees 189% growth in African crypto groups as youths embrace digital currency

    Hurdles for Bitmama to cross

    This pause in card services puts Bitmama at at a competitive disadvantage, especially considering its focus on promoting cryptocurrency usage outside of trading.

    To maintain client loyalty in the face of these service interruptions, the business might need to innovate its offerings.

    “Your trust means everything to us and we will always go the extra mile to ensure your funds are safe and your experience with us is smooth,” Bitmama reassured.

  • Bitmama, payment startup acquires Payday

    Bitmama, payment startup acquires Payday

    Bitmama, a leading blockchain payments startup, acquired Nigerian fintech startup Payday. 

    A media-viewed document shows that Bitmama’s Changera cross-border payments product facilitated the acquisition.

    In September, tech news platform media reported that Payday was actively speaking to buyers six months after raising $3 million in a seed round led by Moniepoint. The Nigerian fintech company Moniepoint was in talks to buy Payday six months earlier, according to another publication.

    The report stated that “Moniepoint had issued a letter of intent to acquire Payday, contingent upon specific performance benchmarks”, but the deal fell through. Sources told the publication that Moniepoint’s board opposed the deal.

    Bitmama, founded by Ruth Iselema in 2017, uses stablecoin infrastructure to address market inefficiencies like dollar shortages, currency devaluation, and high remittance costs. Last September, the startup announced a $2 million pre-seed round.

    Read also: Adaverse joins Bitmama Web3’s pre-seed round

    Bitmama x Payday: Past repair 

    The acquisition by Bitmama was not disclosed, but an anonymous source told media that theChangera team had begun backend work to resolve the issues that users of the beleaguered fintech platform had reported.

    In August, @PIDOMNIGERIA, a popular Twitter account, accused Favour Ori and PayDay of using arbitrary exchange rates, restricting withdraws and transfers without notice, and not responding to customer complaints.

    A study released two months prior detailed a litany of customer complaints. People were scammed on the platform, resulting in unapproved account deductions or discrepancies in funded amounts.

    The Payday team helped with the transition and resolution, according to the source. “We are working behind the scenes to improve technology and create efficient customer service,” the source said.

    Payday expansion potential

    Changera, a 2021 social payment solution, lets non-crypto users use their money worldwide. It makes cross-border payments and remittances easy and secure.

    Changera issues MasterCard and VISA virtual and physical dollar cards. In Nigeria, Ghana, and Kenya, its virtual card allows up to $10,000 in monthly spending on local and international online/offline payment channels.

    The new company announced four months ago that it would be working with MoneyGram to offer cash-in services in Canada, Senegal, Uganda, and Kenya, as well as cash-out services using Circle’s stablecoin, USDC, through the Stellar blockchain network at MoneyGram locations in more than 180 countries.

    As a result, the purchase of Payday, a fintech startup that gives virtual dollar cards to people all over the continental, gives this company access to the data and 678,000 users (according to CEO Favour Ori’s most recent public count). In this case, Bitmama avoids a possibly significant cost of growth.

    According to the source, the acquisition is a smart move because both companies see huge potential in working together. They also say that “this smart move will greatly benefit their customers and contribute to the overall enhancement of the fintech ecosystem.”

    Payday Loans in the Future?

    When we asked if the Payday brand would be taken over or kept as a separate business, our source said these details would be shared as soon as possible.

    The much-anticipated announcement will also include information about who will lead Payday. The source adds, “I am sure that Bitmama and Payday are committed to open communication throughout this process.” “As the talks go on, we’ll keep our customers, investors, and other important people informed,” it says.

    The candidate also said there are plans to add members of the Payday team to the Changera team in the future.

    “Bitmama and Payday will each bring their special skills and strengths to the table when they work together.” It ends by saying that the acquisition will build on these strengths to create a “dynamic and comprehensive fintech platform.”

  • Adaverse joins Bitmama Web3’s pre-seed round

    Adaverse joins Bitmama Web3’s pre-seed round

    Adaverse, a joint accelerator programme founded by EMURGO Africa and Everest Ventures Group, has successfully participated in a pre-seed round to assist Bitmama‘s aim of harnessing blockchain and other frontier technologies. The aim of this is to remove cross-border payment barriers in Africa.

    Adaverse was able to participate in the round thanks to the assistance of Everest Ventures Group.

    Bitmama is a Web3 payment platform that uses bitcoins to improve financial transactions in Africa. Ruth Iselema, a Nigerian female entrepreneur, is spearheading the drive to expedite cross-border payments using Bitmama.

    In Africa, traditional payment channels have long been plagued by issues such as unreliability, excessive processing fees, remittance delays, and a lack of transparency. These issues have been present for a long time.

    International financial transactions, in particular, have proven onerous due to the requirement to convert local currencies into dollars and then back into the recipient’s local currency.

    The introduction of Web3 solutions opens up new possibilities for Africa’s rapidly developing economy.

    This is true despite the fact that individual African countries have implemented varying policies regarding cryptocurrency.

    “We are thrilled to support Bitmama and are committed to providing advice and mentorship support to help them stay ahead of the curve in the fast growing Web3 business,” stated Vincent Li, Adaverse’s founding partner.

    “We are delighted to help Bitmama and are committed to offering advising and mentorship assistance.”

    Read also: Adaverse backs Ejara, woman-led DeFi platform to democratize African finance

    The Need Bitmama Meets 

    Bitmama was established in 2016 by Ruth Iselema for the sole purpose of simplifying the process of buying and selling cryptocurrencies for anyone anywhere on the African continent. The project began as a WhatsApp community for peer-to-peer cryptocurrency transactions and has since developed into a Web3 platform with a full suite of products. 

    These products include a multi-coin digital wallet, peer-to-peer crypto trading, wallet-to-wallet global transfers, remittances with stablecoins, direct currency conversion, on-ramp and off-ramp transactions for traders, asset staking features, and its most iconic crypto debit cards.

    The recent dollar/FX shortages encountered in major African markets and currency devaluation have led to an increased demand for cash to facilitate global purchases, and businesses are looking for alternative payment options for cloud services and digital infrastructure. 

    Bitmama is notable for continuously developing to discuss the pain points of its users, and one of these is the recent dollar/FX shortages encountered in major African markets. 

    As a reaction, Bitmama came up with the idea of crypto cards as a solution to address these difficulties. Crypto cards give customers the ability to store and spend their cryptocurrency in the same manner as a conventional debit card.

    Bitmama Secures $1.65 Million in New Funding

    Changera: Innovative Crypto debit cards offered by Bitmama

    Alongside the multi-coin cryptocurrency wallet, Bitmama recently introduced Changera to power cross-border payment services and facilitate the use of virtual and physical cryptocurrency debit cards globally with a monthly spending limit of over $10,000. Changera will also enable the use of crypto debit cards. Bitmama is the first company in Africa to issue cryptocurrency debit cards that are backed by stablecoins. 

    The company combines blockchain payments with lifestyle products to appeal to customers who prefer straightforward user interfaces and less crypto jargon. In countries like Nigeria, where laws prohibit the use of naira cards for international transactions and where existing Web2 payment platforms don’t provide a suitable alternative, the cards have proven to be particularly useful. 

    In Nigeria, the regulations prohibit the use of naira cards for international transactions. As a consequence of this, Bitmama’s cutting-edge innovation has brought about the much-required respite across international borders.

    Changera crypto debit cards have seen amazing success, recording rapid growth from 30,000 to over 100,000 users across Nigeria, Ghana, Kenya, and the diaspora in general. 

    The amount of transactions has also been increasing by more than 100% month-on-month, which demonstrates the appeal of the product despite the fact that there has been very little marketing of it. Crypto debit cards have successfully democratised the use cases of cryptocurrency by allowing users to make day-to-day purchases online using stablecoins. 

    This has advanced blockchain adoption in markets that have been hesitant to adopt the technology. Companies like Bitmama, which are seeking to ease transactions deserve all the assistance available.

  • Bitmama Secures $1.65 Million in New Funding

    Bitmama Secures $1.65 Million in New Funding

    A blockchain payments startup called Bitmama Inc. has raised an extra $1.65 million in pre-seed capital. This came into reality after raising $350,000 in October 2021, and this new fund will put the company’s total fundraising for this round to $2 million. But earlier this year, the startup also came up with a physical crypto card that can be used to pay for things in stores.

    According to the startup, the new pre-seed funding will be used to scale up new cryptocurrency use cases across the continent quickly. It will also increase operational presence, team strength across markets, consolidation of product offerings, and market penetration in Africa.

    The previous round was led by Unicorn Growth Capital and Launch Africa Ventures. Adaverse and Flori Ventures, which led the company’s previous pre-seed round, also invested in that round. Tekedia Capital, GreenHouse Capital, ODBA, Five35 Ventures, Chrysalis Capital, Enrich Africa, Thrive Africa, Angellist Ventures, and angel investors like CELO founders Rene Reinsberg, Marek Olszewski, and Honey Ogundeyi are among the new investors participating in this round.

    Read also: Binance Partners with Utiva to Host Blockchain Education Bootcamp For African Women

    Bitmama Products

    At the moment, the company’s main products are the Bitmama exchange, which gives users access to virtual assets and lets them try out different ways to use cryptocurrencies; and Changera, a social payment solution that lets people who don’t know much about cryptocurrencies use their money from anywhere in the world without limits.

    Bitmama now works in three African markets: Nigeria, Ghana, and Kenya. Its customers can trade a variety of cryptocurrencies, pay for utilities, and stake as a way to protect themselves from currency depreciation.

    Bitmama: Who are they?

    The U.S. and Nigeria-based company has built a distributed remote team in Nigeria, Ghana, and Kenya. It says it uses blockchain-based solutions to make Africa’s payment system more accountable to the people.

    Ruth Iselema, the CEO, started the blockchain payments company for Africa in 2019. 

    “Aside from buying and selling crypto, we built stuff that could also let them buy local and international airtime and data. Then, due to local bank card limitations of $20 per month, we provided virtual dollar cards for Nigerians to make international purchases.”

    What the company says

    Ruth Iselema, founder and CEO of Bitmama Inc
    Ruth Iselema, founder and CEO of Bitmama Inc

    Ruth Iselema, founder and CEO of Bitmama Inc., made the following statement in response to the round: “Bitmama has made several strides in the past year. We’ve rolled out two products, which are fast closing in on 100,000 users across the African market and are recording impressive daily active users across our range of product offerings despite the market dynamics. We are building Africa’s most user-friendly, innovative blockchain company, and we are glad to have the backing of seasoned investors and partners who have walked similar turf. We are privileged to learn from their blended experiences across corporate and blockchain business verticals. We are confident of our results, and we’re set to build the next big solution that the market deserves.”

    The Growth So Far

    The company says that its Changera virtual crypto debit cards, which are paid for with stablecoins, have monthly spending limits of more than $10,000 and “can work anywhere in the world for online transactions.” According to Bitmama’s CEO, Changera was created at the intersection of blockchain payments and lifestyle. It was mostly made for people who don’t know much about cryptocurrency and are more comfortable using platforms with simple user interfaces and less crypto jargon.

    Bitmama had fewer than 20,000 users on both platforms at the beginning of this year. Iselema pointed out that the number has increased to over 70,000 and that both platforms, Bitmama exchange and Changera, have had tremendous growth with little promotion. The margin on the transactions that users do on the platform generates revenue.

    The Explosive Growth of Blockchain Funding and Cryptocurrency in Africa

    Words from the Investors

    Janade Du Plessis, Managing General Partner of Launch Africa, also commented on the round: 

    “As a prominent Pan-African VC fund, we see our partnership with Bitmama as a way to truly allow all Africans with the ability to trade and manage cryptocurrencies and digital assets conveniently and universally, creating a significant impact on allowing more people to trade and transact across Africa. This is something that we specifically value in our fund and what Bitmama in particular delivers.”

    Hema Vallabh, Founding Partner of Five35 Ventures, said, “As a leading female-focused VC fund, we at Five35 Ventures look forward to helping Ruth and her dynamic team scale Bitmama, especially with the growth of Changera, the remittance platform that lets all Africans do international transactions at much cheaper rates than established remittance companies on the market.”

    Observations

    The use of cryptocurrencies in Africa has increased by more than 1,200% over the course of the last two years, making Africa the third fastest-growing cryptocurrency market in the world. People in developing countries like Nigeria, Kenya, and South Africa are trying to build wealth and protect themselves from their currency falling in value. This is a big reason why adoption rates are going up.

    Even though African governments have different views on cryptocurrencies, most crypto and blockchain startups are in these countries.

  • Bitmama Launches Physical Crypto Card for In-store Payments

    Bitmama Launches Physical Crypto Card for In-store Payments

    Last week, Bitmama, a leading blockchain company in Africa, has launched its newest offering, Physical Crypto Cards. It comes three months after Bitmama released virtual crypto cards, which allow users to spend cryptocurrency without first converting it to fiat currency.

    Bitmama’s physical crypto card comes on the heels of another newly launched service, Buy Crypto, Pay Later, which allows users to borrow up to $150 loan to purchase and pay it back over a certain period.

    Speaking on the launch of the Physical Crypto Card, Bitmama’s Chief Operating Officer Akinbola Asaolu shares their team experience that led to the development of the product —

    “International payments for the average African is a complete hassle. This was quite evident during our team’s recent trip to Nairobi, Kenya, for the African Tech Summit. While we paid for our flight tickets, visa fees, Airbnb, Bolt rides, and all forms of online payments with our Bitmama virtual crypto cards, making the in-store payment was difficult as our local naira debit cards kept declining on POS devices and ATMs due to the $100/month FX spending limit on local cards, which has been recently lowered to $20/month by several local banks in Nigeria.  Hence, we had to resort to holding physical dollars, which is tough to source, in order to convert to local currency at a BDC.”

    Read Also: YC-backed Startup Bloom is Helping Sudanese Grow and Preserve their Wealth

    “Needless to say, this was the experience of the majority of international travelers at the event, **who kept stopping by our booth to ask for physical cards. By popular request, we are again pleased to say that our physical crypto cards are here and have come to stay. Anyone can request and use these cards”, he added.

    We can recall that Patricia, in 2020, introduced Africa’s first Bitcoin ATM card that allows users instant ability to withdraw cash directly from their BTC or Naira wallets, make POS and web transactions, and as well withdraw some money from ATM but ran into regulatory bottlenecks with CBN banning cryptocurrency transactions making them to halt the service. Bitmama claims it is the first mainstream African blockchain company to launch physical crypto cards.

    The claim cannot be refuted because Bitmama’s card feature is not only limited to Bitcoin but other cryptos as well, and further restate the company’s ambition to onboard the subsequent billion crypto users by building lifestyle crypto products and pushing the narrative of crypto beyond trading.

    Bitmama-Pre-Order-Physical-card

    Features and Benefits of Bitmama’s Physical Crypto Card

    • The card can be funded with stable coins – USDT, USDC, cUSD, so you spend crypto directly without first converting to fiat.
    • Spend like a local globally with over $10,000 in monthly spending limits at the best rates
    • The cards work on in-store payment options – POS terminals – and can be used to withdraw from ATMs anywhere in the world, the perfect travel buddy.
    • The card also works for online payments for platforms like Bolt, Uber, Spotify, AWS, eBay, Asos, and Facebook. It can also be used to pay international suppliers very seamlessly.
    • No minimum deposit is required to get a card. A new user who completes verification can request one.
    • The card will be delivered to users anywhere in the world.

    Read Also : Binance Partners with Utiva to Host Blockchain Education Bootcamp For African Women

    How to get a Bitmama Physical Crypto Card

    The card is currently available for pre-order, so users can follow the directions below to secure one for a flat fee of $7.

    Users who pre-order between today and the 30th of April get a 10% discount on the card issuance fee.

    About Bitmama Inc

    Launched in 2019, Bitmama is a venture-backed crypto exchange that enables users to transact cryptocurrencies and access payment channels like crypto cards to make online and offline transactions, all through a straightforward and easy-to-use interface.

    The Delaware and Neuss, Germany based startup was founded by a Nigerian, Ruth Iselema, and has become one of the prominent crypto exchanges in Africa and prides itself in helping thousands of users across Ghana, Kenya, Nigeria and other countries to facilitate millions of transactions annually through its various features including P2P, (Buy Crypto, Pay Later) BCPL, trading and crypto bill payments.

    Bitmama’s novel crypto cards allow users to spend directly with their cryptocurrencies without converting to fiat.