Still waiting on your deadbeat friend to pay you back for that lunch you shared two months ago?
PayPal’s popular new payment app has a solution for you.
The app is called Venmo—and it’s quickly becoming an everyday name in the mobile payments game. Getting started is as easy as adding a new credit card to your Amazon account. The app automatically syncs your contacts through your phone. Then you’re ready to make payments to friends, coworkers, and family.
To make a payment, all you have to do is pick up your phone. No checks, cards, or cash necessary. It’s that simple. Folks are using the app for everything from buying a cup of coffee to paying rent.
Venmo’s growing success makes PayPal the top dog in mobile payments. In the last quarter alone Venmo processed $4.9 billion in payments, the Wall Street Journal reports. And that’s not all. It’s well on its way to processing $20 billion by the end of the year. That’s a lot of coffee…
Cash is dead. Whether you like it or not, currency is going digital. The days of pulling a wad of greasy bills out of your pocket are numbered.
You can fight this powerful trend. Or you can profit from it. Right now you have a shot at a white-knuckle ride as the use of mobile payment platforms begins to skyrocket.
Here’s the deal…
Cashless payments make up over 80% American transactions, explains our own Gerald Celente, editor of Technology Profits Confidential. This shift has been a driving motivation for the masses to embrace mobile banking alternatives and peer-to-peer services like Venmo.
Of course, PayPal isn’t the only player in the game.
Other major players are going to step up and challenge Venmo in the very near future.
There’s Zelle, the brainchild of Bank of America, Wells Fargo, and JPMorgan that is desperately trying to grab some attention before its official launch in 2017. Apple Pay transactions totaled nearly $11 billion last year, barely beating the $10.2 billion in payments processed by Square Inc. (NYSE:SQ).
But when it comes to explosive growth, PayPal Holdings (NASDAQ:PYPL) is our top pick. The company released incredible third-quarter numbers this week that helped propel shares to new 52-week highs.
Active customer accounts rose 11% to 192 million, according to the report. The number of average transactions per active account increased. Mobile payment volume is way up, jumped more than 50% to $26 billion in the third quarter. Oh, and it doesn’t hurt that mobile payments now make up nearly 30% of PayPal’s business.
And it gets even better…
PayPal has already teamed up with Facebook and even Snapchat in the latest innovations for peer-to-peer payments. These partnerships should have a big impact on PayPal’s growth over the next couple of years as more consumers flock to mobile payment options.
Shares are now at their highest levels since split form EBay in 2015. A new era of growth awaits. Now that earnings are out of the way, we can ride the trend to gains into 2017…
This story originally appeared in the Daily Reckoning