THE NEXT BIG TECH TREND
Now, we have a similar revolution happening in the U.S. Four out of five American adults own a smartphone today. That means roughly 202 million people have access to mobile-payment apps such as Apple Pay, Google Pay, and more. Like me, these folks can all pay at many places without their wallets, cash, or credit cards. And soon, your smartphone will be all you need... no matter where you go. HOWTO PROFIT FROM AMERICA’S SHIFT TO MOBILE PAYMENTS In late March, Apple unveiled its new “Apple Card.” It’s like a lot of other credit cards, offering a lousy 1% cash back on all transactions when you swipe your card. But that’s not the interesting part... The Apple Card also offers 2% cash back when you purchase goods using Apple Pay. In other words, the card will reward folks who use Apple’s mobile-payments system. Apple isn’t alone in pushing mobile payments, either... Restaurants like Starbucks and Panera Bread have offered reward points through mobile payments. Amazon has even come out with plans to open as many as 3,000 “Amazon Go” stores by 2021. These stores don’t have any cashiers. You just grab your things and walk out the door, and you’re charged what you owe through an app on your smartphone.
I never imagined that I’d see the future of money for the first time in Beijing, China. But I did... in our very first meeting in Beijing last summer... The executive across the table from us told us that she doesn’t carry a wallet or a purse. She doesn’t carry any money or credit cards, either. Everything she needs is on her phone – everything. In the past two years, paper money has almost been completely replaced by mobile phones in China’s major cities. You see, China went from basically a cash- only society to a massive user of mobile payments in a little more than five years. Today, more and more stores are popping up with no cashiers. And cash is increasingly irrelevant in China’s major cities. It’s a great example of how this unstoppable trend will likely play out at home – and a sneak peek at the fast-moving opportunity for investors... In China, nearly half of the population used mobile payments in 2018 – up from almost nobody in 2011. Mobile payments didn’t really exist in China only five years ago. Now, they’re ubiquitous. When Steve broke this story, he recommended shares of Chinese tech giant Tencent... the owner of one of China’s top mobile-payment apps. The stock more than doubled over the next year. She is not alone. What she does is “normal” among businesspeople in Beijing.
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August 2019
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