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GameStop Associates with Android Pay; Simplifies Payments

Video game retailer, GameStop Corp.GME will start accepting payments through Google Inc.'s GOOGL Android Pay at its more than 4,200 U.S. stores, later this year. This move will offer GameStop customers the convenience of various payment options.

Android Pay, a mobile payment application, works on multiple Android devices and can be used to make payments at any store equipped with the Near Field Communication ('NFC') technology. With this app, shoppers can pay with their credit or debit cards by connecting their phones to the point-of-sale devices (contactless terminal) at stores to authenticate their transactions.

Further, customers will also have the benefit of receiving payment confirmation and transaction details on their phone.

GameStop believes introduction of this system will enhance its customers' shopping experience as the app will help simplify payment mechanism and also offer security.

The company seems to be doing pretty well, as evident from its robust second-quarter fiscal 2015 results, announced on Aug 27, 2015. In the second quarter, both adjusted earnings per share of 31 cents and revenues of $1,761.9 million topped the Zacks Consensus Estimate of 24 cents and $1,727 million, respectively.

Moreover, the company raised its fiscal 2015 earnings guidance. Earnings per share are now expected to be in the range of $3.66 to $3.86, up from $3.63 to $3.83 projected earlier. Further, GameStop expects sales growth in the fiscal to be in the range of flat to up 5%, while comps are estimated to increase in the range of 2% to 7%.

Currently, GameStop carries a Zacks Rank #3 (Hold).

Stocks to Consider

A couple of better-ranked stocks in the same industry include Aaron's, Inc. AAN , with a Zacks Rank #1 (Strong Buy) and Best Buy Co., Inc. BBY , with a Zacks Rank #2 (Buy).

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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 Nasdaq, Inc.


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

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