The Perfect Time To Buy This 'Cash Killer'

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 obsolete . And it's going to do so with the help from technology juggernauts like Apple (Nasdaq: AAPL ) and Google (Nasdaq: GOOGL ).

If that sounds crazy, 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 two out of every three money transactions (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 new technology that's getting widespread attention across the globe.

Near field communication is a technology that essentially lets certain smartphones "talk" to cash registers and other point-of-sale terminals using a short-distance radio frequency transmitter.

With projections that nearly 207 million Americans will own a smartphone by 2017 (up from 121 million in 2012), it's only a matter of time before this convenient payment method becomes the norm.

StreetAuthority's small-cap stock expert, Andy Obermueller, has been following this trend for several years. Here's what he said about NFC when he first told readers about it back in his July 2012 issue of Game-Changing Stocks :

The investment possibilities with NFC are endless...

As Andy mentioned, Google is heavily invested in this technology through its Google Wallet software. Mega financial firms Citi (NYSE: C ), Visa (NYSE: V ), Mastercard (NYSE: MA ) and eventually American Express (NYSE: AXP ) will administer the electronic payments that Google Wallet and other payment apps use. Verifone Systems (NYSE: PAY ), as its ticker symbol suggests, makes the cash-register readers for the smartphone NFC chips.

Each 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 commerce.

That was when shares were trading at around $25 a share.

It turns out Andy was right way before the rest of the crowd caught on. Just look at how NXP shares have taken off since Andy first recommended the company in July 2012:

Not so. In fact, now may be the time to buy. Right now there's potentially a huge catalyst for NXP... namely, a big purchase from the largest corporation in the U.S.

Morgan Stanley recently released a report stating that NXP is "well-positioned to participate in Apple's mobile payment ecosystem." They add that the deal "could garner $250 million in 2015 sales [for NXP]" if it's implemented.

If Apple's iPhone 6 carries NXP chips, it would add nearly 5% to the company's annual revenues, which would be a nice boost. But if other smartphone manufacturers like Samsung, LG, Blackberry and others jump on the bandwagon -- as many do after Apple starts a trend -- it could be a game-changer for NXP.

Better still, Andy previously suggested that with its market cap (NXP is currently valued at $15.5 billion), Apple could afford to buy the semiconductor firm outright using only a fraction of its $100 billion-plus cash hoard.

While I can't promise these things will happen, the possibilities for growth for NFC are endless. And as an old proverb once said "the best time to plant a tree was 20 years ago, the second best time is now."

P.S. -- For Andy, the next game changer is always just around the corner. He's always researching "The Next Big Thing" well before the herd catches on. Recently, Andy's identified five "game-changing" trends with the potential to revolutionize the way we live our lives -- and make early investors a killing. Among other things, these technological developments could allow blind people to drive... eradicate the gasoline engine... and revolutionize the way we think of healthcare. To learn more about these developing technologies -- and the companies behind them -- follow this link .

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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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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