You can use Rappy Medals to increase your Storage capacity. One Rappy Medal permanently increases storage size by 10, and you can increase your storage up to a maximum of 700 Chips. You're probably going to be sinking a few Medals into Storage increases for a little while until you hit 700, after which you can keep Medals for Scratches.
And no, there is nothing to use Rappy Chips on except for grinding, selling, and feeding your Pets.
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