KBW Report: Mobile Payments Stocks Should Look Good Coming Up

April 12, 2018         By: Steven Anderson

Anyone who’s been watching the stock market of late knows that it’s been pretty volatile in there lately. Big swings up and down are the order of the day. Trying to chart a path to gains through it is about like trying to chart a path through a hedge maze on the moon. A new report from Keefe, Bruyette & Woods (KBW)—who sent it our way—suggests that there might be a better future to be had in mobile payments stocks.

The KBW report points out several key trends that should contribute to big growth in the field. Easily the biggest of these is momentum: 2017 was a big year for mobile payments stocks, so with so many users both buying in and continuing to use, it’s a safe bet that the market will continue to be big.

There’s also clear growth coming out of the emerging markets—we’ve pointed out growth efforts in Africa, Southeast Asia, and Latin America for the last few months now, so we know that’s legit—so the field is taking on some real life.

Specific stocks were even addressed: Square has a lot expected of it, as demonstrated by its “…all-time-high PEG ratio…”, and Worldpay’s ongoing integration is calling attention as well. Even Fleet is making its presence known, with a major comeback in the second half of 2017 into 2018’s first quarter. Even PayPal was cited for the exact same reasons we’ve been citing it here: it is not taking the upcoming eBay business loss lying down.

KBW is really not telling us anything we don’t already know, at least not in a general sense.  We’ve seen new and exciting developments almost daily, from new products to new markets to whole new ways of operation. We know this is a volatile market, and we have a reasonably good idea it will continue to catch on with new users as it demonstrates that it’s not an open door for hackers to steal your life savings. How do we know? Because people are using this technology every single day and most people still have their life savings.

So as we go into the future, it looks pretty bright for mobile payments, both the users and the companies who offer the products.