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The value of "cashless banking" transactions is expected to grow 716% by 2022, and we're giving you the best stock to buy in the industry so you can capitalize on that massive growth potential...
"Cashless banking" is an emerging sector of the financial industry that lets you use your mobile devices to make payments and other financial transactions.
The value of mobile transactions around the world is expected to grow to over $865 billion by 2022. That's a 716% increase from the current value of around $106 billion.
Money Morning Small-Cap Specialist Sid Riggs says this growth will come from mobile banking's obvious convenience over driving to your local bank.
"Trips to brick-and-mortar locations are going the way of the Dodo bird," Sid said.
Cashless banking allows users to "simply use their mobile device to take a photo of a check and upload it straight to the bank, rather than having to trudge to the branch, find parking, and wait in line."
And the company we're recommending today plays a safety role in ensuring people will keep making these mobile transactions...
Profit from the Cashless Banking Industry with Today's Stock Pick
Our stock pick is a company that protects mobile banking transactions from hackers, which is essential to maintaining the public's trust in the cashless banking industry.
Hacking has become more prominent lately, following the back-to-back Equifax and SEC hacks. On Sept. 7, credit-reporting agency Equifax Inc. said hackers compromised the personal information of 143 million Americans - nearly half of the U.S. population. And just yesterday, the U.S. SEC said hackers breached one of its electronic systems used for storing financial filings.
Urgent: Feds use obscure loophole to threaten retirees. If you have a 401(k), IRA, or any type of retirement account, this could cause you to miss out on $68,870 or more. Learn more...
The number of data breaches in general has been rising in recent years, too. The Identity Theft Resource Center reported U.S. companies and government agencies suffered 1,093 breaches in 2016 - up 40% from 2015. This came despite an 8.1% increase in global cybersecurity spending over the same period, according to researcher IDC.
Hackers will undoubtedly try to target cashless banking as the number of mobile transactions increases. According to Sid's research, nearly 2 billion people - or 26.7% of the world's population - will be using their mobile devices for banking transactions by 2019.
That could add up to 285.7 million transactions a day if every one of those people makes just one transaction a week.
"That's a whole heckuva lot of opportunities for hackers to intercept your banking information as it travels through 'secure' networks," Sid said.
But the company we're about to recommend offers the encryption and protection that keep those millions of transactions safe. Sid says it's the best stock to own as mobile banking explodes over the next five years.
And some analysts are projecting the stock will grow more than 77% in just a year...
The Best Stock to Buy Right Now in the "Cashless Banking" Industry
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VASCO Data Security International Inc. (Nasdaq: VDSI) is the best way to profit from the rise in cashless transactions.
VASCO provides encryption services for companies that offer or use digital and mobile banking. Their most popular services include electronic signatures and mobile app security. The company's over 10,000 customers include healthcare companies, government agencies, and multinational banks, including BCR, which is Romania's largest bank by clientele.
Sid likes VASCO's main product, DIGIPASS for Apps, which rolled out behavioral, fingerprint, and face authentication in May 2016. By recognizing a person's distinct physical features, DIGIPASS ensures only the intended user can access the banking data. In the past, a hacker could guess a user's password or trick them into divulging it.
This has singled out DIGIPASS as one of the best personal cybersecurity products out there, even earning a 2017 Global Excellence Award from leading security publication Info Security Products Guide.
The growth of mobile banking will let the company expand its customer base and rake in more profits. Analyst data compiled by Yahoo Finance shows that VASCO's yearly revenue could rise from an expected $185.7 million in 2017 to $192 million in 2018.
This will likely lead to a rebound in the VDSI stock price. Shares are down 17.4% this year to $11.27, as revenue has dipped 8.2% from Q1 to Q2. But we think that makes now a great time to buy at a discount before they climb back up. Analysts expect VDSI stock to rebound as much as 77.5%, to $20, in the next year.
Stocks like VASCO are a great way to profit from both mobile banking's growth and the rise in cyberattacks. Money Morning Chief Investment Strategist Keith Fitz-Gerald has been researching even more aggressive income potential, too. He's found a special class of investments he calls "26(f) programs," which give investors the opportunity to tap into huge monthly income - $2,000... $5,000... or more - every month for the rest of their lives. Click here to learn how it works...