Four stocks to benefit from a cashless future

A large global presence, a strong uptrend in non-cash payments in developing countries and changing attitudes to cash conspire to position these companies particularly well

Vikram Barhat 3 April, 2019 | 5:00PM

Disruption of the payments market got more intense with the recent introduction of Apple’s (AAPLno-fee credit card that the tech behemoth launched in collaboration with Goldman Sachs. The move is a further validation of the world’s steady march towards a cashless future. In fact, studies show the cash system is already on the verge of collapse in some parts of the world.

The non-cash boom, led by emerging markets that will account for half of cashless transactions globally by 2021, is on track to rack up over US$876 billion in non-cash payment transactions by 2021, growing at more than 12% annually, according to the World Payments Report 2018 (WPR) by Capgemini and BNP Paribas.

As the world pivots towards cashless payments, tech giants and traditional payment processing companies are making a strong push into the burgeoning cashless market trying to open new revenue frontiers and establish their dominance.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
American Express Co98.66 USD-2.54
Apple Inc320.50 USD0.75
Mastercard Inc A303.51 USD1.25
PayPal Holdings Inc149.07 USD2.13
Visa Inc Class A195.67 USD1.48

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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