85% of all retail transactions are made with cash or check, but is that about to change? It looks to be that way as consumers start to leave their cash in the bank and take it out using their credit and debit cards.
In 2010 48% of all retail transactions were done with cards in the US and by 2013 that was up to 50%. A report done by the more »
If you are scratching your head at the title of this article, wondering for a second if I just like oxymoron's, I take that as a good sign because it means I won't be wasting the next few minutes of your time as you are reading this.This pick may seem a bit questionable at first glance; it is only the fourth largest bank-card operator in the United more »
Over the last several years, the world has begun its switch from paper money to plastic cards. This trend has fueled incredible growth for credit card companies, and made Visa (NYSE: V) a goldmine for investors. After pulling back about 11.5% in less than a month, Visa could be a great value play at this level.
The company and its quarter
Visa is the world's largest retail electronic more »
Visa (NYSE: V) shares were recently dealt a severe blow following the historic Federal Court ruling regarding debit interchange rates.
A US District Court passed the landmark ruling on July 31, 2013, that in effect invalidated an earlier ruling regarding debit card fees levied by card companies. The Wednesday ruling overturned an earlier ruling passed in 2010 and placed into operations in October 2011, that allowed the Federal Reserve to more »
Thanks to the Fed’s $85 billion worth of monthly liquidity injections, the unemployment rate in the U.S has slid to 7.6%. And with the improving job scenario, the U.S per capita disposable income has grown by nearly $1 trillion over the last year. Since the Fed doesn’t have any plans to unwind its quantitative easing anytime soon, the economic recovery will most likely continue. This more »
Visa (NYSE: V) shares were recently dealt a severe blow following the historic Federal Court ruling regarding debit interchange rates. A US District Court passed the landmark ruling on July 31 that, in effect, invalidated an earlier ruling regarding debit card fees levied by card companies.
The Wednesday ruling overturned an earlier ruling passed in 2010 and operationalized in October 2011 that allowed the Federal Reserve to place an unprecedented more »
This article has been amended to better reflect the ramifications of the debit card ruling.
A landmark ruling in a federal case regarding debit card fees could potentially cost the kings of plastic billions. When and if the hype materializes, which companies are standing to weather this financial storm, and come out the other side stronger?
The Judge Has Spoken
On July 31, a U.S. district court invalidated a more »
The key to making money on the stock market is not a hugely complicated trading strategy requiring terabytes of computing power. It is simply searching for companies that are able to generate sustainable long term value though cash generation and simple business models. This requires several things, the most important of which is an operation that will run itself. The 'key man' risk is an important thing to consider here more »
Fleetcor Technologies (NYSE: FLT) continues to grow, and is benefiting from the global shift away from paying cash. The company made its shareholders happy again, delivering earnings and revenue above analyst expectations last week. Fleetcor provides payment services including fleet cards and other specialized payment services for businesses around the world. New deals and geographic expansion are translating into robust earnings and revenue growth.
Fleetcor reported second-quarter earnings more »
Aging businesses tend to get complacent, especially when they have legacy monopoly power. Think airlines, phonebook publishers, and local newspapers. Before deregulation, the internet, and the rise of blogging, these three industries were some of the best in the world when it came to profitability.
Technology is changing more than print media and business class flights. Entrenched money transfer services face new tech-savvy competitors who want a slice of a more »
MasterCard's (NYSE: MA) long-term investors must be quite happy. The stock has experienced a decent gain since its IPO, from around $47 per share in 2006 to more than $610.60 per share at the time of writing. Including the dividend payment, the cumulative return for shareholders has reached more than 1,260%. Is MasterCard still a good long-term buy for investors? Let’s take a closer look.
Growing more »
MasterCard (NYSE: MA) is firing on all cylinders lately, the stock is trading at all-time highs after delivering a blowout earnings report for the last quarter. Valuation may be getting a little frothy but, make no mistake; this global payments powerhouse still has plenty of upside potential for years to come.
There are basically two kinds of card companies with very different business models, players like American Express more »
Revenue and macroeconomic conditions have a very strong positive co-relation for credit services companies. Any improvement in the macroeconomic conditions gets reflected in the revenue of credit services companies. Recent reports from various agencies have indicated that the macroeconomic conditions in the developed countries have shown signs of improvement, which augurs well for this industry. This will help the major players in the industry like MasterCard and Visa improve their more »
When I see a stock trading for nearly $600 a share, I have the same reaction many investors probably have. It’s frustrating that the company chooses to keep the share price so high, as smaller investors like myself would have trouble accumulating a decent number of shares. While I know intellectually this higher price is the same value as 10 shares worth $60 each, there something gratifying about owning more »
I hate it when $1 billion goes missing don’t you? Much to my surprise, in Visa’s (NYSE: V) most recent earnings, the company reported stellar growth by nearly every metric investors could ask for. Between strong growth, and a new multibillion-dollar stock repurchase program, the market reacted positively to the company’s earnings. However, the company’s outlook leaves a rather large question unanswered, and if I were more »
The economic recovery in the United States and consistent growth in emerging economies like China have resulted in higher consumer spending across the globe. This has proved to be a blessing for industries like retail, housing and automobile.
Apart from these, one other industry that has benefited from greater consumer spending is the credit card business. One of the leading companies in global payments technology, Visa (NYSE: V) reported robust more »
MasterCard (NYSE: MA) is one of the leaders in payment solutions, providing services related to credit, debit, and other payment methods for about 22,000 financial institutions. Shareholders of the company have done very well lately, with shares up more than 11% in the past three months alone. In fact, since first going public in 2006 at $39.00, shares are up an astounding 1,440%! With the company set more »
“Consumer borrowing in the U.S. climbed in May by the most in a year,” according to Bloomberg. Credit cards, school loans, and automobile loans led the list. While increased spending, particularly using debt, is a good sign, rising rates could materially alter this trend. Stick to higher-end players like American Express (NYSE: AXP) and Toll Brothers (NYSE: TOL).
Americans appear to be spending again. That's a more »
The markets can punish even the best of companies.
Last week eBay (NASDAQ: EBAY) reported earnings that missed on the top and bottom line. Net income came in at $822 million for the quarter, while revenue missed at just under $3.9 billion. Earlier this year, eBay laid out aggressive forecasts, seeking to enable some $300 billion in online commerce by 2015.
The auction and payment company noted that its more »
American Express (NYSE: AXP) has rewarded investors over the past four years. However, based on the broader market’s significant rally, this should be expected. It should also be noted that American Express has underperformed MasterCard (NYSE: MA) and Visa (NYSE: V) over the same time frame. Then again, investing is about looking ahead, not forward.
American Express is different
MasterCard and Visa rely solely on processed transactions. American Express more »
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