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How to find the best stocks to buy can be challenging, as stock investment trends seem to evolve at light speed.
We're going to have a look at one of latest, hottest sectors to illustrate how to find the best stocks – the electronic payments industry.
How to Find the Best Stocks: Look to the Booming Electronic Payments Sector
Investment experts say that today, buying digital payment stocks is a great way to tap into the trillion-dollar emerging electronic payments sector.
In 2012, global digital transactions came in at an astounding $4.6 trillion, according to the Electronic Transactions Association (ETA). By 2017, the ETA said that figure will rise 58% to $7.3 trillion.
"Here's the ETA stat I just love," Money Morning Defense & Tech Specialist Michael A. Robinson said. "Had you invested $100 in the S&P 500 in early 2007, that would now be worth about $130. But that same money invested in a basket of digital payment stocks would have a value of $259."
Digital payment companies are booming, owing to improving technology and innovation. The payment method that people use is changing in a manner never seen before, with the trend migrating from paper-based checks and cash, to plastic and other digital methods.
In 2012, the global amount of payment made in non-cash transactions amounted to $333 billion, constituting an 8.8% increase from 2011. In the U.S. alone, more than 75% of the total non-cash transactions are electronic payments. The growth in this sector is fueled by the huge benefits that consumers find with digital payment methods.
Additionally, there is a shifting trend by traditionally cash-based markets to embrace the new digital payment methods. This has, in turn, fueled the growth of businesses that have jumped onboard with digital payment services, making these proactive companies promising choices when you're looking for how to find the best stocks.
Here are a few of the benefits seen by both consumers and companies, and driving sector growth:
- Speed: Electronic payment is instant. You just click the send button and the money reaches the other end. Compared to sending checks or cash, this is a much faster transaction, without the hassle of currency conversion and certain security implications.
- Convenience: Digital payments on the Internet mean that traders never have to close shop. It is always open and can be accessed globally at any time.
- Efficiency: Digital payment systems leave electronic documented audit trail behind, which helps to streamline your accountancy and auditing processes. When compared to bank wires, you realize that they are very expensive and cumbersome. Plus, accepting online payment plays a key role in streamlining the buying cycle. After you have made your order, purchase, payment and finally dispatched processes electronically, there is no need for re-keying order data.
- Reduced costs: Through accepting electronic payments, several banking processes will become automatic.
- Wider customer base: One big advantage of online payment solutions is that it encourages impulse buying. Thus, it increases sales of products and services.
These benefits are driving more and more people to shift to electronic payment methods, making digital payment service companies one of the hottest sectors to shop for stocks to buy.
In fact, Robinson recommends investing in this Georgia-based digital payment company that boasts more than 530,000 accounts around the world and also has offices in 43 countries…