Quick, what's in your wallet right now?
My guess is you have some family pictures, a few credit cards and
maybe some old business receipts. If you're more old fashioned
like I am, you might hold a few greenbacks in there as well...
just in case.
Why am I asking? Because I predict that within the next five to
ten years you won't need a wallet.
Simply put, I predict a small technology company is going to make
all material forms of currency
. And it's going to do so with help from technology juggernauts
like Apple and Google.
If that sounds crazy, then consider this. It took a few thousand
years to go from coins to paper money and then onto charge cards.
It took 18 years for debit cards to surpass checks. Four years
after that, more than 50% of all transactions were electronic.
This year, nearly
(64%) will be made electronically.
While many of those transactions will be online, a large portion
will come from something called near field communication (NFC) --
a relatively new technology that's getting widespread attention
across the globe.
Near field communication essentially lets certain devices "talk"
to cash registers and other point-of-sale terminals using a
short-distance radio frequency transmitter.
With NFC, all you have to do at the register is tap the reader
with your smartphone and out you go with your goods. It's as
simple as that.
I'ts only a matter of time before this convenient payment method
becomes the norm.
projects the number of phones with NFC chips will double to 550
million phones this year from 300 million last year.
StreetAuthority's small-cap stock expert, Andy Obermueller, has
been following this "cash killing" NFC technology for several
years now. Here's what he said about NFC when he first told
readers about it back in his July 2012 issue of
"It's not often that the future lands in my in-box.
But it did last week. Google sent me an update on its new
Wallet initiative. The Google Wallet is a new way to pay.
It uses a special chip in certain smartphones to
transmit your credit card information to a reader that
more and more point-of-sale terminals are equipped
There is no physical exchange of the card and thus no
chance of the number falling into the wrong hands.
It's also going to open up mobile payments to a whole new
audience, notably among young people and a portion of the
population that doesn't use banks. That's because not
only is the credit card in Google Wallet available as a
prepaid card -- no credit required -- it is also
available on a prepaid smartphone through VirginMobile.
This will certainly help push this technology into the
The investment possibilities with NFC payments are endless.
As Andy mentioned, Google is heavily invested in this technology
through its Google Wallet software. Financial firms Citi, Visa,
Mastercard and eventually American Express will administer the
electronic payments that Google Wallet and other payment apps
use. Verifone Systems, as its ticker symbol suggests, makes the
cash-register readers for the smartphone NFC chips.
All of these large companies will likely receive healthy new
revenue streams out of the deal.
All of which makes me confident that they will ensure
each other's -- and this technology's -- success in
But, as Andy has been telling his subscribers for the past two
years, these companies are not where the largest gains are to be
made from this NFC technology:
"The winning stock in this space is not likely to be
Google. Nor do I think it will be Sprint, which runs the
network, and it's not Citi or MasterCard...
Instead, the likely winner is a company most
people have never heard of...
It makes the special chips that go in the phone that
"talks" to cash registers..."
That was back when shares of this semiconductor manufacturer were
trading around $25 per share.
It turns out Andy was right way before the rest of the crowd
caught on. Just look at how shares have taken off since Andy
first recommended the company in July 2012:
With this NFC chip manufacturer now up 278% from when Andy
recommended it, you might think you've missed the boat.
Not so. In fact, right now there's a potentially huge catalyst
for this stock... namely, from a big purchase from one of the
most profitable companies in the United States.
In September 2014, Apple officially entered the digital payments
market with its "Apple Pay" app, which is compatible with the
Apple Watch and the recently-released iPhone 6. As a result, this
company's NFC chips will be used in the millions of iPhone 6s and
Apple Watches sold in the years ahead.
Even with the 278% gains he's seen over the past two and a half
years from this firm, Andy is still calling the stock
"The #1 Apple Supplier To Buy Now"
for the potentially monumental gains ahead. He's so excited about
its growth prospects that he spent the last few months crafting a
research report about this supplier and four other key Apple
suppliers that he expects to skyrocket in the wake of Apple Pay.
To learn more about his latest research, I invite you to
check out his special research alert here.
The bottom line: the outlook of wallets and cash is tenuous, but
the growth possibilities of digital payments are endless. Embrace
it, and enjoy the ride up.