Replies to post #782 on USA Technologies Inc (USAT)

[FUNMAN]

Despite all of the attention on mobile payments, the use of phones to make in-store payments is still extremely rare and done mostly by millennials. Will Apple Pay, CurrentC, Softcard and other mobile initiatives be enough to make mobile POS payments a mainstream occurrence?

http://thefinancialbrand.com/42760/mobile-payments-report-pos-trends/

By Jim Marous, Partner at The Financial Brand and Publisher of the Digital Banking Report

There is no doubt that the discussion of mobile payments is front and center in both trade press and mainstream media. The coverage has been fueled by a number of developments that could reshape the mobile payments landscape, including:

Apple Pay: The introduction of Apple Pay is thought by many to signal the tipping point for mobile near field communication (NFC) acceptance by financial organizations, merchants and consumers because of their devoted fan base and the unique ability to change consumer behavior on a large scale. The new payments alternative allows iPhone 6 and 6 Plus users to make payments at over 200,000 retail locations in the US. One of the major advantages to Apple Pay is that it includes new security features that speak directly to consumers’ top mobile payments concerns.
MCX: Not to be outdone by Apple (and presenting a potential point of confusion for consumers), Merchant Customer Exchange (MCX) has built a consortium of over 70 of the largest retailers in the US including Target and Wal-Mart and announced an alternative mobile wallet solution, CurrentC. The participating merchants control one in five retail dollars spent in US stores, and have said they won’t accept Apple Pay.
ISIS: While significantly smaller than either Apple Pay or CurrentC, the Isis mobile wallet app is backed by three of the largest U.S. wireless carriers. It changed its name to Softcard after a violent military group of the same name began to dominate headlines.
In-App Alternative: There are alternative apps that bypass payment terminals altogether by allowing users to make in-store purchases entirely within their phone. This option changes the way consumers pay in restaurants and bars and potentially other locations, making mobile payments a software-only process.
The question that needs to be asked is whether these developments are enough to be the catalyst for people to finally start paying with their phones? In a report from BI Intelligence, it was projected that while mobile payment volume will grow rapidly over the next five years, it will still only represent less than 5% of in-store retail sales in 2018.

[FUNMAN]

Quite frankly, as long as revenues keep rising, there will always be support for the PPS.

Insider stock compensation is the norm.

Waiting for a tech company to make profits is the norm.

No matter how you feel about the insider qualifications, they are growing the company's revenue and connections. That's what people see.

As long as they keep adding connections, they will be perceived as eventually growing into profitability.

As total connections grow, the cost of adding new connections will diminish as a percentage of revenues.

That's what people see. Every company has a GAAP breakeven point. So does USAT.

The PPS trend over the last few years reflects what I wrote above. No great rise should be expected. It's a slow slog trending to a bigger company.

300,000+ shares keep trading every day. Some one is making money and others are losing. I'm just holding.

If it drops into the low $1.60's I will consider adding exactly for the reason you pointed out. There is a force behind the trading that will push the PPS back up on good news. Maybe when that happens again, if any of my positions switch from short-term to long-term, I'll take advantage of the bump and sell "that" position.