) - one of the leading wireless carriers in the U.S. - recently
entered into an agreement with
) to offer instant and secure mobile credit card payment service
to its customers.
Vantiv - which offers payment processing and technology solutions
services to merchants and financial institutions in the U.S. -
will provide a virtual checkout app on tablets. Moreover, it will
offer a scanning facility on smartphones.
Higher adoption of smartphones and tablets coupled with
deployment of 4G LTE networks has increased the popularity of
mobile payments. As per research firm Forrester, mobile
payments in the U.S. will achieve $90 billion by 2017, with a
five-year compound annual growth rate of 48%.
AT&T's strong retail presence coupled with its efficient
sales team will help Vantiv's mobile products to target small and
large merchants in the country.
A highly saturated U.S. wireless market has impelled AT&T to
diversify its product and service portfolio. A few days back,
AT&T signed a multi-year agreement with
Tesla Motors Inc.
) to provide high-speed wireless Internet to the current and
upcoming electric cars in North America. Recently, the company
struck a deal with
) to provide billing solutions to AT&T's connected car
service, Drive Studio.
In the third quarter of 2013, AT&T's bottom line outpaced the
Zacks Consensus Estimate while its top line was in line with the
same. The company added 989,000 wireless customers in the
reported quarter, totaling 109.5 million. Hence, we believe that
such diverse product offerings coupled with continued adoption of
smartphones will sustain subscriber growth going forward.
Currently, AT&T Inc. has a Zacks Rank #3 (Hold).
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