Barron's Article on Cashless Society- Digital Walllet Coming
fraudsters all moving to USA due to more secure Eurozone 2 factor EMV standard. USA will implement 2 factor chip and pin EMV std by y/e 2015 for bank atms; 2017 for gas pumps. Verifone (and Vasco!) to make additional 40-60m per yr in USA when new card readers get deployed at Point of Sale by retail merchants. Very bullish scenario. The March Vasco roadshow will be all over this digital wallet securitization effort for mobile tablet/ smart phone and other retail endpoints. Great article.
The license fees are 1 to 3 bucks per user.
replace Verifone with Vasco here:
VeriFone (Vasco) will also benefit as merchants upgrade their systems to comply with new security protocols. Europe and Canada have already upgraded to the "chip and pin," or EMV, standard, and their payment systems are much more secure.
In the U.S., the upgrades are taking awhile to play out, as they did in Europe. "Everyone delayed it until they had to," says Mark Kopinksi, American Century's chief investment officer for global and non-U.S. equity, who has closely tracked the digital wallet and evolving payment systems. "You didn't get a big push into EMV until the deadline." In the U.S., the deadline is now fast approaching, and MasterCard and Visa are making rule changes that will effectively require merchants to employ the standard by late 2015.
Williams thinks that security upgrades could drive an additional $50 million to $60 million in revenue for VeriFone (Vasco) in each of the next five years. He sees overall revenue growing 10% in fiscal 2013, to $2.1 billion. Analysts expect VeriFone (Vasco) earnings to grow 19% this year,
exploding mobile payments mkt in 2013:
Mobile payment technologies
have exploded, led by credit-cardswipe
gadgets and services from
can check out customers
from their smartphones and tablets
with thumb-sized card readers
Therevolution has spread tonew
mobile payment apps and digital
wallets forsmartphones as well.
Look for expanding use of mobile
paymentoptions in 2013,withcredit
card companies MasterCardMA
andVisaV taking onupstarts Apple,
Amazon, eBay, Google, Square and
5. Superfast4Gdata services.