E-PAY Basket


More and more people are adopting digital payment systems in place of cash. Incentives from many governments to encourage the use of these types of payments, which still remains secondary in Europe to cash. In fact, a report from the European Central Bank shows that in 2020, 73% of transactions in the Old Continent were made using cash. For the United States, the discourse is different. The San Francisco Federal Reserve recently published a report showing that coins and bills were used for 19% of all transactions in 2020, 7% less than in 2019. Virtual money is becoming increasingly important, and several studies show how the digital payments industry can grow in the coming years as well.

Digital payments: security and ease of use driving growth

There are several reasons that are driving the trend of digital payments, primarily the innovation brought by the industry, which is leading to the development of new payment products such as those related to contact-less and smartphones. With these systems, people have greater security as if we take cell phones as an example, purchases can be unlocked with biometric factors such as facial recognition or fingerprint. Companies in the industry are also investing significant resources in cybersecurity, making it increasingly difficult for hackers to get hold of customer information. Also, a mention must be made of the pandemic situation. The Covid-19 has pushed the sector further, both because of the boom in e-commerce, but also because of the fear (denied by several studies) that coins and banknotes could be a source of contagion. It is also worth noting how the so-called self checkout in stores is developing: these solutions eliminate the figure of the cashier, with customers who, by means of digital payment methods, can buy independently.

Digital payments: a growing sector

According to a study by Grand View Research, this market could reach a size of $236.10 billion by 2028, with an average annual growth rate of 19.4% over the 2021-2028 period. Interestingly, for Finaria, the impact of Covid-19, which increased its annual growth forecast from 16% to 22%, is worth highlighting. The company also expects the industry to reach 10.5 trillion in value over the next 4 years. For Accenture, by 2023 $7 trillion that would have been spent in cash will be channeled into digital payment methods.

How to invest in the technology sector

Kimura Trading, in the e-pay basket has included the top 3 companies that have digital payments as their core business

Visathe financial services company that transfers money primarily through credit, debit and prepaid cards, is the 12th largest company in the world by market capitalization, at more than $500 billion. The group does not issue the physical cards, but supplies financial institutions with payment products under the Visa brand. The company is based in California and was launched in September 1958 by BankAmeicard credit card program of Bank of America. The current name came in 1976. At the end of 2020, Visa reported revenues of $21.8 billion, profits at $10.9 billion and 20,500 employees.
Mastercardfounded in 1966 as the Interbank Card Association, the company has a relatively short stock market history, dating back to 2006. The company is involved in payment systems and is responsible for the Maestro brand and the Cirrus interbank circuit, which it acquired in 1985. In 2020, the group reported revenues of $15.3 billion, net profits at $6.4 billion and transactions of $6.3 trillion.
American Expressthe electronic payments group began in 1850 as a priority mail company. In 1857 American Express arrives in the financial services business by launching its money order. During World War I, the company was one of the few companies in Europe that we're able to honor Americans' letters of credit on the Old Continent. At the start of the global conflict, the British government chose the company to send letters, money, and packages to prisoners of war. The first credit card arrived in 1958. At the end of 2020, the group reported revenues of $36.08 billion and net profits of $3.135 billion. Currently, American Express has a market capitalization of $126.62 billion, coming in at 117th place on the list of the world's most capitalized companies.

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