Chams Switch, a Fintech subsidiary of Chams Holdco Plc has been licensed by Union Pay International, the world’s largest card network, to spearhead international payments for UnionPay cards issued by Nigerian banks.
A statement from the Company indicates that the partnership will reinforce collaboration among businesses and traders, engaged in global commerce, offering a cost-effective alternative for international trade, particularly with a focus on transactions involving China and the Southeast Asia region.
The Group CEO of Chams HoldCo, Mayowa Olaniyan said:
- “The UnionPay partnership is a testament to our commitment to innovation and creating value for our clients. The $2.5 million investment validates our vision and positions us for sustained growth and impact.”
International trade
According to Olaniyan, UnionPay International has a robust platform that is fully optimized to ease international trade between China and the rest of the world.
The affordability of UnionPay cards, compared to existing options for international trade, is fast attracting Nigerian banks.
- ” Already, two institutions have integrated UnionPay cards into their services, with more in the pipeline. This strategic move positions Chams Switch as a key player facilitating efficient and cost-effective cross-border transactions.
- ” In tandem with this exciting development, Chams Switch has successfully secured a $2.5 million investment in early 2023, propelling the company into a phase of accelerated growth. The infusion of capital underscores investor confidence in Chams Switch’s strategic vision and capabilities as an emerging leader in the fintech sector.”, according to the statement.
Olaniyan noted that Chams Switch’s ChamsPay payment gateway is also experiencing good traction in processing online payments for merchants and is set to accelerate this growth as it forms strategic partnerships and alliances.
- “It is quite notable that since Chams Plc fully transitioned into a Holdco and restructured its management, the 38-year-old technology conglomerate is experiencing a rebirth and looking to establish itself as a force at a time when a new wave of financial technology innovation is resetting the landscape,” according to the statement.
What you should know
Despite reporting an N135.81 million loss in Q3 2022, Chams Plc recovered and generated N255.1 million profit in Q3 2023.
The profit growth was driven by a significant increase in revenue and the board management of finance income.
In Q3 2023, Chams Holdings declared N7.51 billion in revenue, representing an increase of 137% from N3.17 billion reported in Q3 2022.
Key contributing factors to Chams Holdings’s revenue in Q3 2023 include N3.45 billion generated from Printer Solutions and Access, N1.99 billion generated from card personalization & printing, and N1.08 billion from Payment Systems Solutions.
