Fin Tech is transforming the payment processing industry and the Millenial generation is driving the revolution. The Old World of landlines and blood-sucking processing fees from the dinosaurs like Worldpay and First Data are under assault from the next gen of low cost, specialty service and cloud-based upstarts in PayPal, Square and, now, i3 Verticals.
Visa, Mastercard and other card companies are happy to license their brands, for a fee. And the banks that issue those cards are happy to collect their sponsor fees and the interest assessed on unpaid balances. Now the only question becomes who gets the back-office core responsibility, and reward, for being the middleman with the retail transaction world. The Old Dinosaurs? Or the New Wizards of Fin Tech?
Investors can certainly choose WP or FDC stock for their portfolio. Huge market cap. Huge outstanding shares. Some future growth from conservative and broadly-focused platforms like Zelle and Clover. They will get their share of the future and largely cashless payment landscape. Or...
Investors can choose PYPL, SQ or IIIV and the Fin Tech revolution that is reshaping payment processing to better suit the needs of the USER base. Not "one-size-fits-all" old school processing for the masses at a high fee basis. Nope. Narrow, targeted, niche-focused specialty platforms that align custom programs with custom software and custom features that actually serve the needs of the Millenial user base that wants no bank account, wants no card fees and carries no cash with them.
Easy choice for me. I am very long SQ and getting there with IIIV. PYPL is too large, now, to experience the post-IPO surge that is now happening at SQ and will begin to kick in with IIIV in mid-to-late 2019.
GLTA.
