Again and again, questions like the following are asked here: "if you could only keep 5 stocks forever, which would it be?". Most of the time I agree with the then mentioned usual candidates (MSF, AAPL, NESN, ...). Almost all the time also VISA is mentioned, and that's what I fail to see.
Why VISA? I see, of course, that fewer and fewer people are paying in cash worldwide and using their credit cards or services like Apple Pay and Google Pay, which is actually just the credit card with extra steps.
I regularly spent time in London, and here you pay almost anything with a contactless credit card, so I can imagine what you envision every metropole in the world to look like payment-wise in the next decade. BUT don't you believe that old technology like credit cards are not being slowly replaced by new technologies? By that, I mean mainly peer-to-peer payment methods that work via messenger, SMS or simply other decentralized apps. The best example is China where almost the whole country uses WeChat or Alipay for payments(I know these services are only fake peer to peer, but it doesn't matter for the point I want to make).
In the long term, I see these services dominating and not the credit card? Is VISA simply also heavily involved in these new payment methods? Otherwise, I cannot see why VISA as a stock should be such a safe and long-term investment?
Thanks for reading. Looking forward to your answers.
Submitted September 21, 2018 at 08:36AM by Naithen92 https://ift.tt/2MRjaVd
