In recent years, mobile payment has become a key method of online shopping and other forms of eCommerce. With more members of Generation Z, who grew up in a world where smartphones were not an innovation, but a reality, this segment of the financial space is expected to grow tremendously in coming years. With more smartphones in people’s pockets and an increasing number of countries shifting towards cashless economies, it is no surprise that many of the leading payment technology companies in the world are constantly working to introduce new and improved payment solutions.
In 2016, the mobile payment market was valued at $601 billion¹. By 2017, it grew to nearly $720 billion², and it is expected to cross the $1 trillion milestone in 2019³. Forecasts suggest that it will continue to grow, reaching anywhere between $2.7 and $4.5 trillion by 2023. This growth will be prompted by many catalysts, which will both get more people to use mobile payments and make it easier for existing users to conduct more of their transactions with mobile devices.
The introduction of mobile internet and smartphones placed mobile payment at the fingertips of billions around the world. As the industry grew, more users started using mobile payments, due to its seamless, frictionless nature. Moreover, using an application for making payments gives the user more transparency and control over their finances, with readily available data accessible anywhere, enabling them to track and manage their spending habits. The phenomenon grew to gigantic proportions, with sales events, such as Black Friday and Cyber Monday bringing in billions in mobile payments each year.
But the market is far from reaching its full potential. Alongside obvious growth brought upon by more people around the world obtaining access to smart devices, there is also growing trust in mobile payment systems thanks to companies such as Square placing a strong emphasis on security and fraud prevention. As the industry continues to mature, it is likely to attract more new users.
Several recent innovations could bring new usability to mobile payments. Blockchain is becoming a global trend and several payment giants, such as Mastercard⁴, have already introduced payment systems based on the technology. Other innovations could include increased promotion of e-Wallets, such as Apple Pay, and removing global barriers using services such as Wirecard.
Meeting customers at the point of sale
But there’s much more to mobile payment than online shopping. Using a smartphone instead of a credit or debit card at a point of sale is a phenomenon that is expected to grow, with contactless payment technology making the process intuitive and simple, while giving the user real-time information about their finances.
As this becomes more widespread, it is likely that payment giants will try and leverage this form of interaction with the customer. Meeting a buyer at the point of sale opens up a myriad of business opportunities, since customers could be offered promotions and rewards relevant to them, based on their locations and even payment history. Combining payment technology with location services, artificial intelligence and big data, mobile payment could potentially have an even greater impact on in-store payment than it did on eCommerce.
Investing in the mobile payment industry
With such strong growth forecasts and many opportunities still untapped in the market, it is no wonder that many investors are eager to take part in this well-established industry. To help its clients gain exposure to the mobile payment market, eToro has put together the MobilePayment CopyPortfolio – a fully allocated thematic investment portfolio focusing on the mobile payment market. Using this Portfolio, investors can passively invest in the segment in the long term, with stocks from leading companies such as Mastercard, Visa, PayPal and many others.
eToro is a multi-asset platform which offers both investment in stocks and cryptocurrencies, as well as trading CFD assets.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Cybersecurity took center stage in 2018 and could present an exciting investment opportunity
Cybersecurity has always been a topic of importance for both enterprises and individuals. However, 2018 was riddled with events that highlighted just how crucial an issue it is, following privacy breaches such as the Cambridge Analytica Facebook scandal. With renewed interest in online safety and privacy, cybersecurity stocks are attracting increasing attention in the investment world.
2018 – the year of the hack
The attention to online privacy reached new heights in 2018, following the Cambridge Analytica scandal, which jeopardised the data of some 87 million Facebook users¹. The scandal put in question many of Facebook’s user privacy practices, resulting in Founder and CEO Mark Zuckerberg testifying before Congress. A month later, the General Data Protection Regulation (GDPR) came into effect in the EU, applying new restrictions on any entity that collects personal data.
The dynamics of online security
One of the reasons cybersecurity is, and will remain, a hot topic is the ever-changing nature of the online world. With so much sensitive information being stored in the cloud and on computer networks, the risks are ever growing and the need for effective cyberdefenses is ever present. From “simple” risks, such as phishing scams, to complex ransomware programs and crypto mining bots, each person and enterprise with an online presence is in danger of falling victim to a cyber attack.
The cybersecurity industry is huge, estimated at more than…
Big banks, big opportunity? Earnings season kicks off
Each quarter, publicly listed companies share their earnings reports with their investors and the general public. These reports provide insights into each company’s performance and more often than not, impact their stock prices. Over the next six weeks, companies will be sharing their reports for the fourth quarter of 2018 (Q4), with major banks kicking off the earnings season.
Reporting earnings in a challenging market
This earnings season has a very meaningful backdrop, as Wall Street has been heavily impacted by external forces recently. Firstly, the Fed’s drive to hike rates over the past year, with four rate hikes in 2018, has put pressure on the market.
Perhaps the most important factor causing Wall Street to struggle recently has been the rising yield of 10-year bonds. These bonds, issued by the US Treasury, present a relatively low-risk investment option and produce steady returns twice a year. When the interest produced by these bonds is high, it could push investors away from the stock market, as the safer option is now also high yielding. Recently, 10-year bond yields have been giving investors interest rates of 2.73%.
Entering this earnings season, many companies face the challenge of remaining a lucrative investment option for their shareholders. For some companies in the financial sector, this season might be especially crucial, as they have to recover from less-than-impressive results last quarter.
Banking on earnings…
The trading secret of kela-leo: Profit is important, lower risk is more important!
kela-leo is a Chinese Popular Investor who was featured on ‘Editor’s Choice’. He says: “During my trading journey, I found that strict risk management is the premise of long-term trading. Based on this knowledge, by combining strategic models and economic policy trend analysis, we can bring in an ideal profit.” Here is an interview we held with him:
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. This is not investment advice.
Tell us a little bit about yourself.
My name is Lingxia Cao, I am 31 years old. I have 2 babies and a wonderful wife. They all support me to trade on eToro.
Did you have previous experience with financial investments before joining eToro?
Yes, in the past I had experience in investing options in Manhattan, America. I started to deal in currency futures from 2007, but at that time China didn’t have currency margin trading yet.
What is your type of trading strategy?
My trading model prefers value investment to judge according to the analysis of economic fundamentals and policy, and thus, I combine some tools like price status to set positions. Middle-long term investments are the main…
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