LOS ANGELES, October 30, 2017 /PRNewswire/ --
USA News Group - As financial sector stocks struggle to make gains, a bright spot has emerged for investors. Companies adapting technology to make this process better and more seamless are seeing the payoff for their efforts and include: Lending Club Corporation (NYSE: LC), PayPal Holdings Inc. (NASDAQ: PYPL), On Deck Capital Corporation (NYSE: ONDK), and GlancePay (CSE: GET) (OTC: GLNNF).
This segment is looking to combine the best of financial products and services with technology. The combo has been dubbed financial technology, or fintech for short. These firms are hungry for customers, mostly small, and looking to grow rapidly.
And fintech opportunities are growing at an astounding rate.
The space crosses payment and transfer, lending and financing, banking, and financial management - the key areas where online and mobile can beat traditional models.
Leading fintech companies' rise are projected to average a CAGR in the 30% + range through 2025 and could, reach as high as 80% according to current data.
Of the early contributors, here are four key players who could make real changes and provide some impressive returns.
The newest addition to the race is a Canadian company being referred to as the "next PayPal" for its ability to bring simple, patented technology to mobile restaurant payment space. GlancePay, (CSE: GET.CN) (OTCQB: GLNNF) launched in 2016 and is already the No. 1 mobile payment app in Canada where it originates.
Others who offer real promise are Lending Club Corporation (NYSE: LC), which is expecting revenue growth of more than 70% this year, along with PayPal Holdings Inc. (NASDAQ: PYPL) with its excellent year-over-year growth up 49% this year, and On Deck Capital Corporation (NASDAQ: ONDK), whose earnings are expected to jump significantly to $0.37 per share in 2017, more than 3x last year's.
FINTECH IS SCALING UP
The Fintech market is truly massive and for many, the light is just beginning to shine.
According to BI Intelligence there will be $503 billion in in-store mobile payments by 2020-a growth rate of 80% between 2015 and 2020.
That is a significant growth curve for in-store mobile payment.
In addition, in-app mobile payment features rose by 57% in the past year, according to Appy Pie.
Over all, the mobile payment technologies market is expected to increase at a CAGR of 20.5% by 2024, according to Transparency Market Research. That would put it at over $1,773 billion, with mobile wallets expected to overtake credit and debit cards by 2020 in the U.S.
It seems that China has been blazing the path in this sector. In 2016, mobile payment activity in China was almost 50 times greater than in the U.S. making that country's mobile payment market already worth $5.5 trillion-and counting.
DISPLACING OLD TECH
One largely untapped area is the quick-service restaurants who according to BI Intelligence, are increasingly offering mobile order-ahead apps as a way to drive higher revenues.
The full-service restaurant industry in North America was worth $286 billion, while the quick service restaurant industry was worth over $230 billion in 2015.
This is the initial target market GlancePay is looking to lead by displacing old technology.
GlancePay allows customers to pay their bill instantly with their mobile device. That, plus a lot more. It takes mobile pay app technology much further than say Apple Pay, which is available only to iPhone owners. Apple has failed so far to gain widespread usage, many suggest because it limits user interaction.
GlancePay's approach is to offer a holistic eco-system that includes in-app marketing, in-store rewards, transaction history, payment confirmation, -even the ability to split the tab in a restaurant. It incentivizes users and adoption is picking up as a result.
People who use the system love it.
It also helps you choose nearby restaurants, and will soon enable ordering from your table, and ordering for pickup or for delivery.
For restaurants, it's a real boon. It promises better business, faster turnaround and potentially greater revenues. The especially like the fact that they can be up and running with the system in under an hour with no new hardware.
Beyond displacing technology in the restaurant sector, GlancePay is also diversifying into two other potentially massive fintech markets: Cannabis commerce and Crypto currencies.
GET is setting up to provide turnkey solutions for the emerging marijuana market through its CannaPay service offering. Legalization in Canada is anticipated as early as mid 2018. This is a market that Deloitte estimates could be worth a whopping $22.6 billion annually. Yet there
Is, at present, no existing provider stepping up to deliver mobile and direct payment options.
GlancePay also plans to provide multiple payment cryptocurrency channels such as Bitcoin in order to accommodate even broader payment options.
SIMPLE IDEAS MADE GREAT
Virtually all fintech companies are working to simplifying traditional financial systems and approaches.
GlancePay is right in step. They have a streamlined payment platform giving customers the ability to pay their restaurant bill instantly with their mobile device. Imagine no more waiting on waitresses; no more credit card machines; and a single app covering every restaurant. No wonder it's catching on like wildfire.
The app knows user location by using patented GPS technology. If GPS isn't available, it can determine location using a photo of the location instead. Similar to the way Google has mapped the world, GlancePay has built a proprietary global database of locations.
GlancePay is the second major app development by Desmond Griffin, who previously gave the world 'PayByPhone', a super successful mobile app for parking payments now servicing millions of customers in over 100 cities globally. That app sold for nearly $45 million, and is owned by Volkswagen.
THE FINTECH TAKE AWAY
Mobile payment technology is one of the fastest-growing markets in the world, and GlancePay is hoping to be a major market disrupter-filling a gap not addressed by the majors.
Other fintech leaders have shown the continued ability to leverage technology in order to transform the way financial services are performed. They demonstrate how innovation has directly led to both top- and bottom-line growth.
GlancePay seems to be on the same track here. It's doing things PayPal doesn't appear to be able to, and ultimately, there are very few competitors in this space.
As Fintech bursts at the seams with innovation, GlancePay has already taken Canada, and now it's preparing to take North America with an easy-to-use, simple solution.
GET is still relatively new as a fintech company. But it has already gained major traction: just launched in 2016, it now has 160 merchants signed on, and its growth is on track to leapfrog in the coming months. Indeed, its Q2 revenue is up a whopping 664% over the previous quarter.
Fintech has lots of potential, and next two quarters are promising to be very interesting. Investors should take note and look for GET join the list of the early innovators creating potential for major returns.
Lending Club Corporation (NYSE: LC)
Lending Club claims to be the largest online provider of matching borrowers with investors, or those willing to lend money to the borrowers. Because it doesn't have any physical branches, it pitches that technology helps keep borrowing rates low and is more efficient since borrowers and lenders can find each other online, combining one of the best benefits of the internet - social connections. Due to individual state regulations for banks, Lending Club has to adjust how it charges fees and makes money. In a nutshell, it is looking to more closely tie the fees it earns to how a loan performs over time. The stock is down from a 52-week high and the forward earnings multiple is a pretty reasonable 21x, especially considering rapid expected revenue growth of more than 70% this year.
PayPal Holdings (NASDAQ: PYPL)
In 2014, mobile commerce accounted for a little more than 11% of the $303 billion domestic e-commerce total. It's expected that could balloon to 45% of e-commerce, or about $284 billion, by 2020. PayPal appears to be better-positioned than any other company (at the moment) to capitalize on this trend. Last year, PayPal facilitated more than $100 billion of total payment volume originating from mobile devices. That figure is expected to go up significantly in 2017 thanks to growth from features like PayPal's One Touch feature. When the company reported its first quarter, over 53 million consumers had opted into the program and more than 5 million merchants accepted it at checkout.
On Deck Capital Inc. (NYSE: ONDK)
On Deck Capital is small by financial company standards, having been incorporated in 2006. But revenues are growing rapidly and expected to jump around 30% in each of the next two years to more than $426 million in 2017, a huge increase from the $25 million reported in 2012. If offers term loans and lines of credit to small businesses in the U.S. and Canada. Its pitch is that its loan processing and approval process is streamlined due to its technology and the fact it operates only online. According to On Deck, it has originated over $2 billion in loans and processed more than 5 billion customer payments since its operations go going in 2007. Look for a significant increase in earning in 2017.
For a more in-depth look into GET you can view the in-depth report at USA News Group: http://usanewsgroup.com/2017/10/29/hedge-your-money-with-fintech-3-2-2/
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