Chipper Cash has recently launched a new service to enable ordinary Ugandans to buy US stocks and cryptocurrencies. Chipper cash was actually co-founded by a Ugandan called Ham Serunjogi who currently serves as the CEO.
Chipper Cash is a financial services company that features a software application platform that enables free instant cross-border mobile money transfers in Africa as easy as sending a text message. The company was founded in 2017 and is headquartered in San Francisco, California. The company was recently valued at $2bn after raising $150m in additional capital. The company has over 4 million customers across the globe.
The company was recently licensed by Bank of Uganda to operate a financial technology platform in Uganda.
Out of curiosity, I tried out the app. I downloaded the app from Google Play Store and I registered my account using both my MTN and Airtel lines. I then got the account verified by taking a selfie and uploading a pic of my national ID. I then transferred ugx 200k from my Airtel mobile money account into the app.
Thereafter I bought shares worth ugx 100k in different US companies listed on the New York Stock Exchange including Tesla, Amazon, Facebook, Microsoft, Apple, Netflix, JPMorgan, MasterCard, Johnson & Johnson, and Berkshire Hathaway. I also bought ugx 50k worth of Bitcoin and another ugx 50k of Ethereum.
Chipper cash uses something called fractional investing to allow small retail investors to own a small portion of shares in large listed companies. This means for as little as $1 anyone in Uganda with a smartphone can participate in the US stock market. They have partnered with a brokerage firm called DriveWealth to enable this service. You can also buy airtime using the app and you can transfer and receive money across the world.
I think this is a revolutionary service in our economy because the US stock market and the world of cryptocurrency investing have been really simplified and brought within the reach of ordinary Ugandans. You are no longer confined to growing maize and chicken only. You can now own shares in Amazon and Facebook!
Of course, any prospective investor should carefully study any investment before committing their hard-earned money.