Clip Money, Fintech Disruptive Technology

TSXV:CLIP, OTC:CLPMF

Clip Money is a prime example of emerging and disruptive technologies I look for. I did a video interview with the COO yesterday, see on youtube.

CLIP is an Ottawa based company that I have been following for about a 1.5 years and they just went public in late May of 2022.

First let me explain their technology in brief layman terms. And this is already developed, deployed and is growing usage like crazy. A business uses the CLIP mobile app and tallies up their cash deposit and puts cash and coin into a deposit bag. The bag has a bar code, which is scanned at a Clip deposit box. The safe door opens and they deposit cash in the box. Their bank account is credited the next day. It saves each business store location about US$400 to US$600 per month. Approx. 1 of 3, in person payments in the US still involves cash.

It does not matter what bank the business uses, the deposits can go to any bank. No more driving to the bank and waiting in line. The boxes are conveniently located in Malls, big box retailers and other convenient locations. Clip already has agreements with large mall owners like, Simons, Oxford, Tanger and Brookfield. Staples, an office equipment company is also a location partner for Clip boxes and many more are and will be joining.

CLIP does not have to fork over money for the drop box as they are partnered with armoured car company, Brinks. Brinks provides the hardware, maintenance and cash collection as a service provider to CLIP. CLIP has a small outlay for their logo/signage on the box.

What is important about their business model, it is reoccurring revenue (transaction based) and once a drop box is installed it starts to see more and more users, compounding revenues. I want to highlight that CLIP has the perfect experienced management team to make this a huge success. The group already has the relationships with financial institutions and big Fintech companies because of their experience and success with Cardtronics. All those times you used an ATM in a convenience store or off site from the bank, it was likely Cardtronics.

The company plans to double their number of drop boxes in the next 12 months. The are also expanding their deposit technology into ATMs as business still have to use tellers. Clip will also roll out a new service this year called 'Change Orders' by delivery they will provide business with their float of small change. This will not require a drop box, so virtually any business could start using this service. CLIP is gaining recognition as this graphic highlights some of their customers.

The stock has suffered like most others in the past year but looks to be at the bottom of it's trading range. This is a micro cap company so it trades thin. In time as the company grows, so will the market cap and trading activity.

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