Shareholders in Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) may be worried as specialist businesses look to move in on the growth area of mobile payments.
According to a report in the Australian Financial review (AFR) the world is about to experience a surge in payments being made from smartphones and tablets with growth of 60% forecast both this year and next.
This structural change in payment methods is set to disrupt the stranglehold traditional banks have over payments, with Apple Inc set to be a major beneficiary thanks to technology imbedded in its iPhone.
Other potential beneficiaries are early movers who have developed innovative and disruptive technologies which could be well positioned to benefit from explosive growth in mobile payments.
Here are three stocks worth knowing.
- Mint Wireless Limited (ASX: MNW) provides mobile payment solutions and transactions. Its product offering has been selected by Westpac and competes against Commonwealth Bank's Emmy terminal.
- eServGlobal Limited (ASX: ESV) has developed a very large mobile money solution which has proved particularly popular in developing regions such as Africa and Asia. The company's software empowers a user to send money via their mobile phone anywhere in the world.
- Emerchants Ltd (ASX: EML) specialises in the pre-paid financial card market, this includes reloadable cards. As the AFR article mentioned, "store value accounts seek to take business away from traditional bank accounts." This is a segment Emerchants is positioned to win business from.
These three disruptive technology businesses could all prove to be winners from the mobile payments revolution, they're certainly on my watchlist, but they're not my top tech stock pick.
