Like many of us, I'm a huge believer in the convenience of mobile commerce, often referred to simply as m-commerce. I use Apple Pay from Apple Inc. (NASDAQ: AAPL) on my phone regularly when shopping.
There's just one problem - maybe something you've dealt with, too. My iPhone can't recognize me and approve my identity with facial recognition. At least, not when I am wearing my COVID-19 safety mask.
That's where the new field of "touchless commerce" comes into play. It's a process in which you simply tap the store's reader with an enabled credit card.
And it's quickly gaining share in m-commerce, a field worth $284 billion.
Even without COVID-19, this was a field to pay attention to. The world is barreling toward the most convenient "hands-free" options in everything from buying to driving to texting.
That's why it's a great time to invest in the firm that's pioneering touchless commerce. With the initiatives this payments innovator is managing, I see its stock doubling in three years or less...[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
Moving the Marketplace Online
Now, let's be clear about one thing; overall retail is down sharply due to the COVID-19 panic that closed most retail stores.
But e-commerce is a very bright spot for global growth and profits. Consider that in Latin America alone, some 13 million made e-commerce transactions for the first time while in quarantine.
Here in the United States, we have become even more dependent on online shopping, much of it done through handhelds.
Just think of all those stores that are now reopening on a limited basis, providing curbside checkout. That's a process just made for touchless commerce because it's so easy to tap the store's portable reader with your credit card.
All of this is great news for Visa Inc. (NYSE: V). While the company didn't reveal dollar figures, it recently said that touchless payments in the United States rose 150% - in March alone.
Online shopping is surging too, with Visa seeing 18% more online payments in April, excluding travel.
Now, online shopping is very convenient, and during these lockdowns has become quite literally a lifesaver. But it can be a surprisingly complicated process.
According to Visa's own research, the average online card payment requires you to enter your information into 23 different fields - name, address, phone number, card details, and so on.
It can be a real downer, but Visa is working to fix it. The company already operates the Visa Checkout system, a platform that lets you pay online with your Visa card without the buyer getting your card details.
Visa has already upgraded 10,000 merchants over to a newer system that validates your identity and fills in your information for you, speeding up the checkout process.
The rest of the world is also seeing a bump in touchless payments.
Visa says 60% of in-person transactions are now done using this technology, as well as contactless transactions.
Using it is very simple. First, you have to make sure your card and the payment terminal support the technology. Just look for the "tap to pay" symbol on both. It looks like four or five vertical waves, sometimes with a small credit card next to them.
Then, instead of handing your card to the cashier, swiping it, or inserting it into the chip reader, just hold your credit card right next to the payment terminal.
That's it. A second or two later, and your payment information will be processed.
Not only do you not expose your credit card to whatever germs may be on the payment terminal, but you also don't give the merchant your card information - only a "token" version that cannot be reused, even if it was somehow stolen.
The technology enabling this is Visa's real business...
A Digital Money Network
To be clear, Visa is not a "credit card" company. It makes no money off credit card balances or interest. It doesn't even issue the cards. Banks do that, under license from Visa.
What Visa does is link the banks all over the world with almost every merchant you'd ever need, making sure your bank-issued Visa card works wherever you need it.
This computerized global payment grid is called VisaNet. It operates out of four high-security data centers located in Virginia, Colorado, London, and Singapore.
These state-of-the-art server facilities are some of the most secure buildings on the planet. They are built to withstand natural disasters and terrorist attacks. Visa's units can also operate without external power.
These centers can handle 64,000 transactions every second. That's a lot of capacity, but it doesn't go to waste.
There are 3.3 billion Visa cards worldwide, bringing VisaNet up to a total volume of $11 trillion. And Visa gets a cut of each transaction.
Add it all up, and you can see why Visa is such a great fintech leader and why it faces so much upside as digital payment continues to grow.
See, over the past three years, the firm has grown per-share profits by 25%. I'm shaving off roughly 10% to account for the slowing growth of the U.S. economy because of the COVID-19 pandemic.
Now we use what I call my doubling calculator. Mathematicians call it the Rule of 72. Let's divide the compound profit growth rate of 22% into the number 72.
We find that it should double in just a little over three years.
Remember, the economy is starting to reopen. And Visa will get a slice of all that action as shoppers step up the use of their debit and credit cards.
All of Visa's qualities that I've mentioned above make it an excellent choice for investors looking to maximize their chances at market-crushing gains in the high-profit world of high-tech.
And in the meantime, don't forget to check out my latest presentation on a six-figure payday opportunity you don't want to miss...
You see, working from home, telemedicine, and even online grocery shopping are trends that've been here for years without causing any problems... until February.
The 88 most populous cities across the United States are now seeing their Internet speeds tumble by 44% (and this could just be the start).
That's why the FCC had to step in - and their $10 billion initiative could translate to a huge payout because of it.
Click here to check out our research...
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About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.