Easy Money: Tesla & PayPal’s New Digital Wallet Boom
- PayPal and Tesla are leading a new market in America 2.0.
- The U.S. is going to steal market share from China in this new money revolution. And now’s the time, before it soars nearly 300% in the next four years.
- This fintech ETF is up 51% and climbing. Buy in now before the digital boom.
In today’s world, seeing a cash transaction is rare.
If you pay with cash, the sales clerk holds it up to the store’s fluorescent lights to “see” if it’s real.
But, I’m sure you’ve noticed a change at your local stores. There’s now less cash and more digital payment transactions.
During a recent trip the grocery store I noticed not a single customer ahead of me in line paid with cash.
Most paid with their credit card, debit card or … smartphone.
In our America 2.0 world, did you know all you really need is your smartphone to make almost any purchase?
Companies like PayPal and Tesla are leading a “new money revolution.”
A quick digital wallet checkout is sparking a contactless sales boom.
A routine trip to your local store just requires a quick scan of your smartphone’s payment app to complete your purchase.
This game-changing financial technology (fintech) is about to rocket up nearly 300% in the next four years.
And I’m going to tell you the best way you can lock in real money from the digital money takeover.
Digital Money Day — Bigger Than Black Friday
PayPal is an America 2.0 leader in the digital payment market.
On May 1, 2020, according to Payments.com, PayPal experienced the “largest single day of transactions in the company’s history — bigger than both Black Friday and Cyber Monday of 2019.”
And as for car sales, one of our Bold Profits favorites — Tesla — is easily a front-runner accepting this challenge.
While other traditional car manufacturers have faced sale headwinds, in recent months, Tesla’s online sales technology and seamless, contactless deliveries are leading the future of automotive sales.
Tesla buyers have the option of “Express Delivery” or “Tesla Direct Drop.” Both services are contactless and can be completed with no direct, face-to-face, human interaction.
All that’s needed is a payment, through Tesla’s app, on your smartphone.
It’s like having a digital wallet. This quick mobile checkout technology is a relatively new market that’s growing leaps and bounds.
If you’re unfamiliar with how quick mobile payments work, online news site Payments Cards & Mobile put it this way:
“Mobile wallets allow payments by passing a smartphone app over a merchant’s payment terminal. Data transfers are made via near-field communication (NFC) or by scanning a Quick Response (QR) code to trigger an online bank transfer …”
In 2019, the transaction value of the global mobile wallet point-of-sale (POS) payments market totaled an impressive $1.1 trillion.
This mobile POS transaction value is projected to grow at a compound annual growth of nearly 30% starting this year and reach a whopping $4.2 trillion by 2024.
That’s nearly 300% growth in the next four years!
The technology is so popular that the number of people using it worldwide has more than tripled since 2017 — from 294 million users to 903 million users.
By 2024, it’s projected that the mobile wallet POS payments market will have 1.75 billion active users:
It’s important to note that the mobile wallet POS boom has legs to run for years to come. Millennials, the big America 2.0 cohorts, are lead users in this emerging technology.
So far, millennials account for 37.4% of mobile wallet POS transactions followed by generation z users totaling 25.3% of transactions:
Our current global situation is accelerating the use and need for quick mobile checkout and contactless sales transactions.
According to Grocerydive.com, in recent months:
“… retailers are seeing an uptick in the use of contactless mobile payment platforms … According to a recent survey by Mastercard, more than half (51%) of Americans are now using some type of contactless payment.”
51% Gain and Climbing — Invest for America 2.0
Digital payment technology is here to stay.
As Paul always says, you find the best investments by looking forward, not backward.
Companies like PayPal and Tesla see that. They will lead America in innovating contactless sales, with new-world technology, front and center.
Right now, globally, China leads the mobile wallet movement, but not for long.
As America 2.0 unfolds, the U.S. will gain market share. And companies fully embracing this technology stand to reap the profitable rewards.
To be part of this digital revolution, I suggest buying shares in the ARK Fintech Innovation ETF (NYSE: ARKF).
ARKF is an exchange-traded fund (ETF) that invests in domestic and foreign equities in companies that rely on or benefit from the introduction of a technologically enabled new product or service.
These are the companies that can potentially change the way the financial sector works.
As this Bloomberg comparative returns chart shows, year-to-date, ARKF is up 13.7% compared to other indices:
And since the recent market low on March 23, 2020, ARKF is posting a total return of 51%:
To stay ahead of this fintech revolution, buy ARK Fintech Innovation ETF (NYSE: ARKF) today.
And remember to follow me on Twitter @ALancasterGuru. I’ll post timely updates until we talk again next week. And you can even tweet me to let me know if you’d ditch your cash and use a mobile wallet for your future purchases!
Until next time,
Director of Investment Research, Banyan Hill Publishing