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Contactless Payment Gains Steam: FB, AMZN & Others to Watch

Online payment solution providers like PayPal (PYPL), Facebook and Apple, among others, to benefit during the coronavirus-induced quarantine phase. Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The deadly coronavirus (COVID-19) pandemic has compelled governments globally to enforce social-distancing through severe movement restrictions leading to ‘The Great Lockdown’ scenario. This, in turn, has disrupted major economic sectors and rendered the stock market highly volatile.

However, online payment solutions providers such as PayPal PYPL, Alphabet’s GOOGL Google, Stripe, Apple AAPL, Amazon AMZN, Square SQ, Facebook FB and Samsung are likely to gain traction even in this full-blown economic crisis, owing to the growing popularity of contactless payments and rising adoption of digital and virtual wallets.

Customers, store operators and other merchants, utility providers and even banking organizations are opting for online payments over offline or contact payments in a bid to adhere to the COVID-19-induced social distancing protocol.

Moreover, many are of the opinion that usage of banknotes for payment transactions should be avoided as these notes can act as another medium of spreading this deadly virus.

This, in turn, is in favour of contactless payment technology and its providers.

&nbsp;” data-reactid=”12″>The deadly coronavirus (COVID-19) pandemic has compelled governments globally to enforce social-distancing through severe movement restrictions leading to ‘The Great Lockdown’ scenario. This, in turn, has disrupted major economic sectors and rendered the stock market highly volatile.

However, online payment solutions providers such as PayPal PYPL, Alphabet’s GOOGL Google, Stripe, Apple AAPL, Amazon AMZN, Square SQ, Facebook FB and Samsung are likely to gain traction even in this full-blown economic crisis, owing to the growing popularity of contactless payments and rising adoption of digital and virtual wallets.

Customers, store operators and other merchants, utility providers and even banking organizations are opting for online payments over offline or contact payments in a bid to adhere to the COVID-19-induced social distancing protocol.

Moreover, many are of the opinion that usage of banknotes for payment transactions should be avoided as these notes can act as another medium of spreading this deadly virus.

This, in turn, is in favour of contactless payment technology and its providers.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Growth Projections &amp; Factors to Consider

Per a latest report from MarketsandMarkets, the global contactless payment market is expected to hit $10.3 billion in 2020 and reach $18 billion by 2025, witnessing a CAGR of 11.7% between 2020 and 2025.

Further, financial technology leader, FIS, in its Worldpay 2020 Global Payments Report has stated that digital wallets are expected to become the most common mode of online payments by acquiring a market share of 52% by 2023.

Increasing use of smartphones and Internet has resulted in growth of payments apps. Additionally, demand for mobile Point-of-Sale (POS) and peer-to-peer payments is likely to increase during this lockdown period.

Further, change in consumer behavior, especially rising adoption of e-commerce, will drive online payments volume.

Moreover, the coronavirus-induced crisis has resulted in a sharp hike in the online shopping orders as people are under house arrest in order to curb the spread of COVID-19.

Furthermore, payment of telephone bills and utility bills via online payment apps is gaining traction worldwide.

Additionally, quick online bank transfer services using mobile wallets are tailwinds.

All these factors are likely to benefit the abovementioned companies amid coronavirus pandemic.” data-reactid=”14″>Growth Projections & Factors to Consider

Per a latest report from MarketsandMarkets, the global contactless payment market is expected to hit $10.3 billion in 2020 and reach $18 billion by 2025, witnessing a CAGR of 11.7% between 2020 and 2025.

Further, financial technology leader, FIS, in its Worldpay 2020 Global Payments Report has stated that digital wallets are expected to become the most common mode of online payments by acquiring a market share of 52% by 2023.

Increasing use of smartphones and Internet has resulted in growth of payments apps. Additionally, demand for mobile Point-of-Sale (POS) and peer-to-peer payments is likely to increase during this lockdown period.

Further, change in consumer behavior, especially rising adoption of e-commerce, will drive online payments volume.

Moreover, the coronavirus-induced crisis has resulted in a sharp hike in the online shopping orders as people are under house arrest in order to curb the spread of COVID-19.

Furthermore, payment of telephone bills and utility bills via online payment apps is gaining traction worldwide.

Additionally, quick online bank transfer services using mobile wallets are tailwinds.

All these factors are likely to benefit the abovementioned companies amid coronavirus pandemic.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Year-to-Date Price Performance” data-reactid=”15″>Year-to-Date Price Performance

Facebook, Amazon & Apple to Watch

Facebook introduced its new payment service, Facebook Pay late last year. The service allows users to make online payments and send money to others.

Further, Facebook Pay intends to provide secure and convenient online payment experience to users. The payment solution allows users to view their payment history and manage payment methods. Further, the Zacks Rank #3 (Hold) company provides real-time customer support via live chat.

Meanwhile, Apple is well poised to gain on the back of its well-performing digital wallet, Apple Pay. Further, the easy synchronization of Apple Pay with Apple Watch remains a major positive. Further, the app is now available in 49 markets and has more than 6K users.

Notably, Apple carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Meanwhile, Amazon is gaining traction on the back of its online payments processing service — Amazon Pay. The app enables users to make payments, perform shopping, pay bills, book flight and event tickets.

Further, the Zacks Rank #3 company’s strong cashback offerings and huge customer base of its e-commerce platform is boosting adoption rate of Amazon Pay.

PayPal & Square in Fray

PayPal enjoys solid momentum in peer-to-peer transfer on the back of its well-performing Venmo, which enables transfer of money between family and friends via mobile devices.

The Zacks Rank #3 company is constantly adding new features to this app in order to make it more user-friendly. Notably, the Venmo app processed more than $29 billion in fourth-quarter 2019, up 56% year over year.

Square, which carries a Zacks Rank #3, is also gaining traction on the back of its innovative product lines. Moreover, its peer-to-peer payment service, Cash App, has become a key catalyst. The company is witnessing solid adoption of Cash App, thanks to its user-friendly interface.

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