AT&T, Vantiv to Pen Deal - Analyst Blog


AT&T Inc. ( T ) - one of the leading wireless carriers in the U.S. - recently entered into an agreement with Vantiv Inc. ( VNTV ) 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. ( TSLA ) to provide high-speed wireless Internet to the current and upcoming electric cars in North America. Recently, the company struck a deal with Amdocs Ltd. ( DOX ) 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).

AMDOCS LTD (DOX): Free Stock Analysis Report

AT&T INC (T): Free Stock Analysis Report

TESLA MOTORS (TSLA): Free Stock Analysis Report

VANTIV INC-A (VNTV): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: DOX , T , TSLA , VNTV

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