Gileon, you're wrong and missing the trend and what it means. Credit card usage started on a slow trajectory in the beginning. Getting people used to charging purchases with their phones instead of using cash will be huge gain for USAT. Don't get me wrong though, this trend is years in the making. Nothing happens over night.
Every report they provide indicates the transaction charged using the mobile wallet is significantly higher than those done with cash. Credit cards transactions are in the middle.
That's a trend playing right into the sweet spot of USAT's wheelhouse. Virtually giving away units for 3 months is nothing more than following the Sirius XM's strategy of dominating the radio marketplace. The units will eventually be paid for and the transaction charge they profit from comes their way from day one once activated on a machine, in a kiosk etc.
In the laundry business, it's particularly important because of the folks who generally use laundry mats. They can get any mobile wallet and load money onto it. They don't need it associated with a credit card.
Don't get me wrong on this either. I am not predicting USAT is going to dominate any time soon or in the future.
On their current trajectory, they are going to fall short of their 3 year goal by 75,000 units. That means though they will have 425,000 installed units. I wish they didn't over-promise but they do and it's just plain stupid to constantly disappoint people by falling short instead of over-delivering by setting a lower and more realistic goal.
USAT's and their customer's profit per transaction will increase and as the percentage of transaction move to the mobile wallet, that will be terrific news for USAT.
Great things are coming to USAT, but it's a marathon; made a little longer recently. That coke suit was the result of an obviously dumb ass move or bad judgement or worse, just a plain old error they didn't have controls in place to avoid.
My shares are sitting tight in a holding pattern. I'm not selling nor buying, even at this discount price.
