67 WALL STREET, New York - November 8, 2013 - The Wall Street Transcript has just published its Business and Application Software Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Cloud Computing Secular Trends - International Enterprise and Consumer Demand - Application Software Consolidation Activity - Cloud Computing and SaaS Trends
Companies include: Visa (V), MasterCard (MA), Global Payments (GPN), Heartland Payments (HPY), Vantiv (VNTV), MICROS Systems (MCRS) and many others.
In the following excerpt from the Business and Application Software Report, an expert analyst discusses the outlook for the sector for investors:
TWST: Can you begin with a brief overview of your coverage areas, including some of the specific names you follow?
Mr. McCrohan: Sure, I cover financial technology and payments, so companies that are generally involved with the consumer payment ecosystem, from swiping a card at the point-of-sale to how the transaction is settled. So it includes the networks, Visa (V) and MasterCard (MA), as well as some of the acquirers, which are companies like Global Payments (GPN), Heartland Payments (HPY), Vantiv (VNTV) and some point-of-sale companies, like MICROS Systems (MCRS).
TWST: What macro trends, including developments in their clients businesses, are driving growth for your group?
Mr. McCrohan: So the whole secular shift from papers to electronic continues to be a secular tailwind, so if personal consumption expenditures is say 3%, then you can pretty much add 3% on top of that, and that's the growth rate in electronic payments here, at least here in the U.S. Outside the U.S., growth is faster, given less terminalization at the point-of-sale.
So that secular shift from cash and checks to electronic has been a trend that's been around for decades, and it's still happening. There's still a lot of cash in the system that could be displaced over time, so some of the trends that are impacting individual companies are mobile and the shift to digital couponing, that's a big push right now, although no one outside Starbucks (SBUX) and maybe two other companies, Dunkin Donuts (DNKN) and LevelUp, have really cracked the codes on having people use their mobile devices to pay at the point of sale.
So there has been a big trend in the area of a lot of investment for venture capital companies the last few years, but unfortunately I think the hype has exceeded the reality right now, but it's coming. It's just a matter of when.
And we've spent a lot of time talking with investors about tablets at the point of sale...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.