Submitted by stock_122 t3_zx9zfc in wallstreetbets
$V and $MA both are global payment processing companies that operate networks of electronic payment systems and issue credit and debit cards. $V is the larger of the two companies and has a larger global presence. They both generate revenue by charging fees to merchants and financial institutions for the use of their payment processing network. They enable the electronic transfer of funds between banks and other financial institutions.
$AAPL has moved in recent years into the payment service. With Apple wallet, a digital wallet that allows you to store and manage your loyalty cards, boarding passes, movie tickets, coupons, and other types of passes in one place, and with Apple Pay, which allows users to make payments in person, in iOS apps, and on the web, with connecting. These services have been embraced by many customers.
According to the National Retail Federation, the adoption of mobile payments like Apple Pay has been steadily increasing in the US, with an estimated of 34% of smartphone users making a mobile payment in 2021. Additionally, in a recent survey said that 73% of respondents said contactless payments were a more convenient form of payment. The only disadvantage is that not all consumers, particularly older ones, don’t feel comfortable with the technology.
So with a large costume base and user exposure, if $AAPL decides to one day create its own credit card will $V and $MA go bankrupt?
Let’s look at some financials:
- $V total revenue $29.310B, Net income $14.957B, and Free Cash Flow of $17.879B. $MA total revenue $18.884B, Net income $8.687B, and Free Cash Flow of $8.649B.
- $V revenue has grown in the last year by 21%, and $MA revenue has grown in the last year by 23%.
- $V has a ROE of 0.420% and $MA has a ROE of 1.538%.
- $V ROIC is 24.23% and $MA ROIC is 43.32%
I am currently holding $V should I sell?
MY PORTFOLIO- https://www.jika.io/u/Crowman
0x11C3P t1_j1zbwig wrote
Doesn't AAPL pay still utilize V/MC's payment network? Even contactless pay is tied to a credit card that's run on V/MC/D/AMEX no? How exactly would this unseat them?