Remittance fintech company, Chipper Cash, has announced reductions in fees on its Dollar virtual card, a move that comes as the Nigerian Naira records improved performance against the US Dollar in the foreign exchange (FX) market.
In a notice to customer recently, the fintech said it has cut its card issuance fee by 40 per cent, reducing the cost from $5 to $3.
Also, the company lowered the card decline fee by 50 per cent, from N500 to N250, while introducing a simplified transaction fee of $0.90 per successful transaction.
In addition, Chipper highlighted a “massive drop” in exchange rates, giving users better value when converting Naira to Dollar for international spending.
The reductions could also ease the burden on individuals and businesses that rely on Dollar-denominated services such as subscriptions, online shopping, and international transfers.
The development coincides with the recent appreciation of the Naira, which has seen the local currency gain ground on the Dollar after months of volatility.
On Tuesday, the local currency appreciated further above the N1,500 mark as it was sold at N1,484.62/$1 compared with the previous day’s N1,497.23/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The rally has been attributed to a combination of factor including competition from banks, authorised FX dealers, and other sources, stronger demand for the Naira, reduced speculative trading, and improved foreign reserves.
This trend has helped improve the cost of accessing international transactions for Nigerians, particularly through Naira cards that are often constrained by high FX charges.
With Chipper Cash slashing its price, it could be aligning its pricing with current market realities, especially with alternatives offering rates between N1,500 and N1,560.
For instance, GTBank is offering customers a limit of up to $4,000 per quarter, an offer that may see customers lap up its offer of an exchange rate of N1,515/$1 as of yesterday.
This development could be Chipper Cash positioning itself as a more affordable option for Nigerians seeking global payment solutions, especially with some customers expressing discomfort at the firm’s rate. Its rate was N1,567/$1 at the time of filing this report, with Figur exchanging at N1,617/$1 and Providus Bank converting at N1,670/$1 as of Tuesday, September 16, 2025.
Analysts note that if the Naira continues its upward trajectory in the FX market, more fintechs may follow suit with similar adjustments, making foreign transactions cheaper and more accessible.