USA Technologies Inc (USAT)

[LionsTact]

I get ( paid membership ) E-mail alerts from Cramers website and this is their latest for USAT.

Later this week, USA Technologies will hold its postponed shareholder meeting, which should be a relative non-event given the recent resolution of the company’s board- level drama that culminated with the overhauling of its board composition. In our view this means fundamentals associated with the company’s mobile payments business should return to the center of investor focus. That business is poised to benefit from both the growing unattended retail market as well as the accelerated post-Covid shift to contactless payments. According to a recent report from Juniper Research, global contactless transaction values will triple from 2019 to 2024 reaching nearly $6 trillion. In the U.S., which is USAT’s core geographic market, Juniper sees contactless transaction volumes exceeding $1.5 trillion by 2024.

Helping this adoption will be the continued growth in NFC-ready point of sale (POS) terminals, which according to Berg Insights totaled 100.4 million units globally exiting 2019. Per Berg, roughly 62% of all POS terminals are now NFC-ready and it sees the global install base reaching 184.5 million units by 2024. Connecting the two, a study by PYMNTS found that 49% of consumers who used unattended retail channels like the convenience and find them faster, while 35% use them due to short lines and 33% because they can save time without talking to employees.

In our view, these points speak to the opportunity for USAT’s business and our shares in the coming quarters.