Profit From High Consumer Spending With Visa Card Or Mastercard
It seems that gasoline prices have been in a free fall in recent months, which hasn’t hurt the wallets of most consumers. This increase in discretionary income has the potential to be used towards credit card related transactions. Payment technology companies like Visa (V) and MasterCard ( MA) have been thriving as of late with satisfactory earnings reports. This extra cash in consumers’ pockets could prove to be an opportunity for investors to capitalize on these companies’ success.
Without a doubt, the latest drop in gasoline prices has most certainly put real dollars in consumers’ pockets. The Energy Information Administration’s Gasoline and Fuel Updateshows an approximate 31 percent drop in regular gasoline prices in the past year. On a national average, this equates to a little over a $1.00 saved for every gallon purchased by gas station customers. This is a substantial amount to be left in the hands of consumers rather than oil and gas corporations, and there is a strong possibility that a sizable portion of this extra cash is being used as discretionary income. Quite possibly, this money could be spent through the means of a Visa or MasterCard account.
Checking Out Visa and MasterCard Anyone with money to spend has probably heard of Visa. The company’s fiscal first-quarter 2015 earnings report showed net income grew by 11 percent from the prior year. Visa’s total processed transactions ended up at 17.6 billion, which was a 10 percent increase from a year earlier. Looking at fiscal year 2015, Visa forecasts low double-digit net annual growth. The company’s stock price has increased by approximately 10 percent in the month following January 2015. MasterCard is no stranger to consumers or good news as the company has had its fair share of positive developments as well. The company’s fourth-quarter 2014 earnings included a 17% increase in net income to 801 Million Dollars from the same quarter a year ago. Worldwide purchasing volume was up 12% over the same period, and the company’s customers had issued 2.1 billion new credit cards during that same time frame. MasterCard’s stock price has increased a little over 12% in a month’s time since the end of January 2015. The good news for these two companies doesn’t end with their earnings reports. Visa and MasterCard’s innovations are making it even easier to pay with their products. Services like Visa Checkout and MasterPass are enabling consumers to pay merchants with information that has been preloaded by the user, making transactions more seamless. Developments such as Apple Pay will also aid these companies in assuring that customers’ payment information is secure, creating a more welcoming environment to pay with Visa and MasterCard accounts. Progress in the arena of mobile devices will certainly contribute positively to these companies’ bottom lines in the future.
The Bottom Line Gasoline prices have gone down while Visa and Mastercard’s stock prices have moved up. Even though gasoline prices may have inched up slightly, they are still significantly lower than they were a year ago. The net benefit of this downward trend has been the influx of discretionary dollars for consumers. It’s very likely that a healthy percentage of this available money is being spent in places that accept credit cards for payment.
With Visa and MasterCard demonstrating positive financial performance, neither company shows cause for slowing down anytime soon. Their acknowledgement of a growing mobile landscape has allowed the companies to prepare themselves for the next era in payment transactions. Due to their progress, Visa and MasterCard are two global companies that should be considered as a portion of any well-diversified portfolio.
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Without a doubt, the latest drop in gasoline prices has most certainly put real dollars in consumers’ pockets. The Energy Information Administration’s Gasoline and Fuel Updateshows an approximate 31 percent drop in regular gasoline prices in the past year. On a national average, this equates to a little over a $1.00 saved for every gallon purchased by gas station customers. This is a substantial amount to be left in the hands of consumers rather than oil and gas corporations, and there is a strong possibility that a sizable portion of this extra cash is being used as discretionary income. Quite possibly, this money could be spent through the means of a Visa or MasterCard account.
Checking Out Visa and MasterCard Anyone with money to spend has probably heard of Visa. The company’s fiscal first-quarter 2015 earnings report showed net income grew by 11 percent from the prior year. Visa’s total processed transactions ended up at 17.6 billion, which was a 10 percent increase from a year earlier. Looking at fiscal year 2015, Visa forecasts low double-digit net annual growth. The company’s stock price has increased by approximately 10 percent in the month following January 2015. MasterCard is no stranger to consumers or good news as the company has had its fair share of positive developments as well. The company’s fourth-quarter 2014 earnings included a 17% increase in net income to 801 Million Dollars from the same quarter a year ago. Worldwide purchasing volume was up 12% over the same period, and the company’s customers had issued 2.1 billion new credit cards during that same time frame. MasterCard’s stock price has increased a little over 12% in a month’s time since the end of January 2015. The good news for these two companies doesn’t end with their earnings reports. Visa and MasterCard’s innovations are making it even easier to pay with their products. Services like Visa Checkout and MasterPass are enabling consumers to pay merchants with information that has been preloaded by the user, making transactions more seamless. Developments such as Apple Pay will also aid these companies in assuring that customers’ payment information is secure, creating a more welcoming environment to pay with Visa and MasterCard accounts. Progress in the arena of mobile devices will certainly contribute positively to these companies’ bottom lines in the future.
The Bottom Line Gasoline prices have gone down while Visa and Mastercard’s stock prices have moved up. Even though gasoline prices may have inched up slightly, they are still significantly lower than they were a year ago. The net benefit of this downward trend has been the influx of discretionary dollars for consumers. It’s very likely that a healthy percentage of this available money is being spent in places that accept credit cards for payment.
With Visa and MasterCard demonstrating positive financial performance, neither company shows cause for slowing down anytime soon. Their acknowledgement of a growing mobile landscape has allowed the companies to prepare themselves for the next era in payment transactions. Due to their progress, Visa and MasterCard are two global companies that should be considered as a portion of any well-diversified portfolio.
Share this Article If You Love Us!
Follow @LaNUBlog & @Hon_KingSIMEO on Twitter for Updates
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