Union54, a Zambian card issuing fintech, has raised US $12 Million as the firm seeks to launch an alternative to Visa or Mastercards.
On the list of participants in this seed round was Tiger Global as the lead, as well as Vibe VC, Earl Grey Capital and Packy Mccormick’s Not Boring Capital.
Only six months ago, Union54, which has a platform that enables local firms to issue debit cards without linking to a bank or any processor, raised US$ 3 million in a seed round, also led by Tiger Global.
Union54 has grown over the past six months and has issued over half a million virtual cards to its customers.
Union54 CEO Perseus Mlambo disclosed said the firm’s revenue in October 2021 was close to $3,000, rising by 6005 in November and has since recorded a growth of 50% month-on-month.
Union54 has the plan of creating a homegrown alternative to Mastercard or Visa.
Mlambo’s forecast is inspired by the present geopolitical atmosphere, making Africa vulnerable to political decisions that might affect its trade flows.
He disclosed that the firm has invested immensely in effort and time and will test the platform in the next 18 months. The firm aims to have at least nine member banks in the new card scheme at the end of 2022.
Union54 targets to reach a deal with central banks to enable it to issue own domestic and continental debit cards to shorten settlement time and integrate more local payments in the region.