Amazon aims to put Amazon Pay in stores

Amazon aims to put Amazon Pay in stores

While we’ve witnessed the digital wallet explode in Asia, thus far it remains a rather fragmented nascent market here in the US. We’ve seen efforts by Apple, Google, PayPal, and others, but so far here in the US adoption of mobile payments remains low compared to that in Asia. Yes, there are some successes, like the one enjoyed by Starbucks, but so far there is no “universal” mobile payment platform that has taken the country by storm.

This has prompted Amazon to make its move, leveraging consumer comfort with its online digital wallet and one-click payment capability to bring Amazon Pay to the mobile payments space. While Amazon may not be first or second in the mobile payments space, as we’ve seen time and again from Apple, being early with a new technology or disruptive platform doesn’t get a company across the gold medal. Rather, waiting for the inflection point in adoption and having a simple to use and intuitive solution tends to win the race. That could very well be what Amazon is doing as it looks to pick up another tailwind in our Digital Lifestyle investing theme. Inc.  is gearing up to challenge Apple Inc. in the mobile-payments race.

The e-commerce giant is working to persuade brick-and-mortar merchants to accept its Amazon Pay digital wallet, according to people familiar with the matter, attempting to expand a service now used primarily for purchases online.

To start, the company is looking to work with gas stations, restaurants and other merchants that aren’t direct competitors, a person familiar with the matter said. Retailers that view Amazon as a threat could resist the effort, the people said.

The push to become a bigger player in consumer payments shows Amazon’s desire to further integrate itself into the lives of its customers. It isn’t clear exactly how customers would use Amazon Pay in stores: They could tap their phones at checkout, much the same way they use Apple Pay, or scan a code on their phones, among other options. Apple says Apple Pay was accepted at more than five million in-store locations in the U.S. as of May, and the number of merchants accepting its wallet is growing.

Currently, shoppers can use their Amazon accounts to check out at a small number of Amazon’s brick-and-mortar locations, such as Amazon Go and its bookstores, and a growing number of online merchants accept Amazon Pay, its third-party service. Amazon Pay stores credit- and debit-card numbers, allowing shoppers to skip the step of typing in their account information at checkout and making them more likely to complete purchases.

Currently, shoppers can use their Amazon accounts to check out at a small number of Amazon’s brick-and-mortar locations, such as Amazon Go and its bookstores, and a growing number of online merchants accept Amazon Pay, its third-party service. Amazon Pay stores credit- and debit-card numbers, allowing shoppers to skip the step of typing in their account information at checkout and making them more likely to complete purchases.

Amazon also is working to make Alexa, its virtual assistant, an in-store payments platform, people familiar with the matter said. For example, a customer paying for gas could tell the Alexa voice assistant in the car to use Amazon Pay.

Source: Amazon Pay Accepted Here? Web Giant Aims to Put Digital Wallet in Stores – WSJ

Apple Pay now at Costco 

Apple Pay now at Costco 

The chicken or the egg problem that has been facing mobile payment adoption in the US continues to ease with Costco Wholesale joining the ranks of 7-11 and CVS Health to accept Apple Pay. It’s all about reducing transaction friction but I’d also add it’s a relief for someone like me that sometimes forgets his wallet, but not his iPhone. With Consumer Reports recently crowning Apple Pay the winner in a head to head showdown of mobile peer-to-peer payment platforms, beating out the likes of Venmo and Square, and greater retail acceptance we are likely to see greater usage in the coming quarters- a positive for Apple’s growing Services business.


Costco has announced that it now accepts Apple Pay at all of its US warehouse stores, and says that the payment method will be coming soon to its gas stations …

The company told CNET that contactless terminals have been installed at both store checkouts and gas stations, but the latter are not yet in use.

Costco was a notable Apple Pay holdout after 7-11 and CVS finally announced their own rollouts last month.

.A recent analyst report suggested that Apple Pay now has more than 250M users worldwide, led by international adoption. Use of the service for online payments is lagging significantly behind offline use, though a recent survey suggested that demand is there.

Source: Apple Pay now accepted at all US Costco warehouses, coming soon to gas stations | 9to5Mac

Grubhub positions to do more for food delivery

Grubhub positions to do more for food delivery


Grubhub was one of the first companies with its mobile and online ordering platforms to disrupt how we order food takeout and delivery. The company continues to expand its restaurant offering, which now spans more than 80,000 local restaurants in  1,600 cities under its Grubhub, Seamless, and Eat24 applications. With sales up 50% in the June 2018 quarter, it continues to fend off competition, winning a space in consumer wallets due most likely in part to our busy schedules and certain aspects of our Digital Lifestyle.

Looking to further disrupt the restaurant industry and its reach, Grubhub recently acquired digital payment and customer loyalty program company LevelUp and began accepting PayPal’s Venmo – all to expand what it sees as its scope and scale in the delivery space.


Sales were up more than 50% in the second quarter and earnings more than doubled.

Despite competition from the likes of DoorDash, Uber Eats and even the formidable Amazon (AMZN), Grubhub continues to wow investors with its impressive growth.

Grubhub is also partnering with more big national restaurant chains as well as local eateries. The company announced a deal with KFC, Taco Bell and Pizza Hut owner Yum! Brands (YUM) earlier this year.

Grubhub may soon be able to add more chains following its acquisition of mobile technology company LevelUp, which was also announced Wednesday.

LevelUp helps restaurants develop digital payment services and customer loyalty programs. Bareburger, Chop’t and Potbelly (PBPB) are some of LevelUp’s more than 200 clients.


Source: Grubhub is winning the food delivery wars

PayPal to acquire iZettle and challenge Square

PayPal to acquire iZettle and challenge Square

The world of cashless consumption continues to expand as PayPal (PYPL) makes a direct move to compete with Square (SQ) on its home turf by acquiring iZettle. This also brings it into competition with Verifone (PAY) and other payment/transaction hardware companies. Our view has been the mobile payments landscape, like many that are in their early innings, is highly fragmented but moves like this one by PayPal and Ingenico’s recent strategic tie up with Tematica Investing Select List resident USA Technologies (USAT) suggest it is starting to mature. As consolidation continues, lines will be drawn and features refined that are likely to foster greater mobile payment adoption. Now if only consumer would understand that mobile payments are more secure than online ones…

PayPal (PYPL) confirmed on Thursday it’s reached a deal to buy payments start-up iZettle for $2.2 billion — the biggest acquisition in its history.U.S.-based PayPal already operates in more than 200 countries around the world but is working to expand its offerings.  IZettle provides mobile card readers and other digital payment products to small businesses. A merger would catapult PayPal into hundreds of thousands of brick-and-mortar storefronts globally in an effort to bring its digital payments tool into physical retailers and compete with companies, like Square.

Source: PayPal buying start-up iZettle for $2.2 billion, rivaling Square

Weekly Issue: After the close corporate earnings anything but “steady as she goes”

Weekly Issue: After the close corporate earnings anything but “steady as she goes”


Key Points from This Alert:

1. We will continue to hold our existing all options positions:

2.  As we do this, we’re sharing a very speculative idea with subscribers that leverages the growing mobile banking market in India


As we enter the belly of the beast for 4Q 2017 earnings season, we are once again in the midst of a cold snap that is hitting much of the U.S. The cold temps make staying inside and pouring over the earnings call transcripts a little easier, I’m not going to lie, and that’s a good thing given the return of volatility to the market this week. In the beginning of the week, yields and the dollar were the driving impact of market pressure, but some of that pressure was relieved following the Fed’s “steady as she goes” comments exiting its first FOMC meeting for 2018.

As we moved into Wednesday, corporate earnings after the close of trading were another matter. First, there was Facebook’s (FB) results that simply slaughtered December quarter expectations, but the shares traded off as the company shared it is fine-tuning Facebook to focus on meaningful connections. As one might expect this is having an impact on the arguably addictive nature of Facebook, and the company shared it is seeing a decline in user’s hours per day. The longer-term bet is these changes will lead to people spending more time on Facebook. Clearly Wall Street was not buying it given the tradeoff in FB shares in after-market trading.

Also, after the close Qualcomm (QCOM) shared it is seeing higher than normal seasonal declines in its chip business, largely due to inventory builds in the smartphone market. In my view, this sets the stage for Apple’s (AAPL) earnings report after today’s close.

We also saw Citrix Systems (CTXS) deliver favorable results but results fell shy of whisper expectations for the quarter and that led the shares to move lower in after-market trading.

And so on… I point this out because the after-market trading confirms the view that we’ve been sharing here at Tematica – the continued melt up in the market has led it to becoming priced to perfection. As I wrote yesterday in the weekly Tematica Investing issue, when actual results and an outlook or even the internals in an earnings report and guidance are somewhat different than what Wall Street is looking for, odds are there will be pressure on a company’s shares.

Here’s the thing – today will have the greatest number of companies reporting with a number of high profile companies that include Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), United Parcel Service (UPS), MasterCard (MA), Ralph Lauren (RL), GoPro (GPRO), Visa (V) and others. There will be quite a bit to digest and put into content relative to the other companies that have reported.

I often say I like to “measure twice and cut once” like a smart carpenter, and that means holding off with a new options recommendation today and doing so until we are in calmer waters. If the market volatility continues in the coming days, it means call options will likely get cheaper. As this week’s reports are digested and “measured” we can circle back on call option positions for Facebook, Universal Display (OLED) and others, more likely than not at better prices.

As we wait for these opportunities to come to us, we will continue to hold our existing all options positions:


Sharing a very speculative idea

This week, I wanted to share with you a unique micro-cap stock operating in the cashless payment arena in India. To say it’s a highly speculative opportunity would be an understatement, but it’s a stock that I personally invested in last year and I wanted to share it with you, if for nothing more than to provide some perspective of how in many emerging markets across the world cashless payments are leapfrogging over setting up a centralized banking system as we are so accustomed to in developed markets. 

Last week, I and the rest of team Tematica attended the Inside ETF 2018 conference. As Lenore Hawkins and I shared on this week’s Cocktail Investing Podcast, Bitcoin was a frequent topic at the event. Bitcoin is an interesting resident in our Cashless Consumption investing theme – it’s a crowded market with more than 1,300 different coins that are gaining acceptance, even as its use is being restricted in countries like South Korea and China. Subscribers know that I always look for proof points and I saw one for Bitcoin when I recently paid my annual licensing fee to Microsoft for the use of Microsoft Office – I had the option to pay by credit card, debit card, PayPal and … Bitcoin.

Like I said, clearly part of our Cashless Consumption investing theme, and the under the hood technology behind it – Blockchain – falls under the purview of our Disruptive Technologies investing theme. As the availability of investible products for these two items become available, I’ll be taking a hard look at them for Tematica subscribers. I expect we’ll also have a guest or two to help break down Bitcoin and Blockchain on the podcast in the coming weeks.

While we can’t “invest” in Bitcoin, and the SEC is doing a good job to limit those viable opportunities, there are other ways for risk-tolerant investors to capitalize on our Cashless Consumption theme.

One of the more interesting markets when it comes to our Cashless Consumption investing theme is India. According to the World Bank, in India, there are 21.24 automated teller machines (ATMs) per 100,000 people compared to 223 per 100,000 people in North America and 47.55 per 100,000 across the globe. What about credit?  Well, as of March 2017, according to the World the Reserve Bank of India (RBI) only 30 million credit cards have been issued. That’s a record high, but in a country of 1.3 billion people, 30 million credit cards are a blip on the radar screen.

These, as well as similar comparative statistics for banking locations, paint a clear picture that India is under-banked. At the same time, only one-third of India’s 1.3 billion residents have access to the internet. Of those who are able to go online, just 14 percent make mobile payments at least once a week, according to research firm Kantar TNS. One might think the low level of mobile payments is due to lack of phones, but you’d be wrong, very wrong. According to Statista, in 2018 the number of cell phone users in India is forecasted to rise to 775 million. Yes, nearly 60% of the entire population has a cell phone, but very few if any have a bank account, let alone a credit card.

To me, all of this looks like a major pain point, and pain points tend to be addressed.

In this case, one company that is looking to solve this problem is MoneyOnMobile (MOMT) a micro-cap company that recently completed an equity offering, which cleaned up its balance sheet and added to its coffers. I’ve mentioned the company before, but to jog your memory, MoneyOnMobile enables Indian consumers to use mobile phones to pay for goods and services or transfer funds from one cell phone to another be it as a SMS text message, through the MoneyOnMobile application or internet site. To date over 170 million unique customers have had payments made easier through over 300,000 retail merchants across India and its payments platform. That presence has allowed Money on Mobile to serve between 3 million and 5 million customers each month over the past year.

Through the six months ended September 2017, Money on Mobile recorded revenue of $3.2 million, up 29% year over year, but digging into that last 10-Q filing we find its September quarter revenue gapped up more than 80% year over year. In reviewing the company’s monthly revenue statistics that it published, its November 2017 revenue was up more than 300% compared to November 2016.

The rising revenue combined with the recent equity offering and debt restricting that removed balance sheet concerns have led MOMT shares to move sharply higher closing last night at 0.53 compared to 0.32 at the end of 2017.

Here’s the thing – there are no call options on MOMT shares, and in fact I would argue that when we look at the 52-week trading history between $0.11-$0.60, while they are equity shares, they are really more like call options. I’ve made some individual stock recommendations here in the past at Tematica Options+, both on the long and short side, but given the market cap nature of the company, MOMT shares are far from a riskless investment.

I will share that earlier this year I purchased some MOMT shares because I like the company’s position in a pain point filled market. Much like Amplify Snacks (BETR), I also see MoneyOnMobile as a potential takeout candidate by the growing number of companies that are looking to tap the mobile payments market in India.

Now, this is where I remind you that we don’t buy companies surely on takeout speculation, but because of the thematic tailwinds behind their businesses. In the case of MoneyOnMobile that would be the intersection of our Cashless Consumption and Rise & Fall of the Middle Class investing themes. I see MoneyOnMobile as a high risk, high reward micro-cap opportunity and it is one that I intend to be patient with and hold for some time. I’d also add that I am fully aware that growing competitive market place in India could very well squeeze MoneyOnMobile. This is not a position for the faint of heart.

To me, this puts it somewhere between Tematica Investing and TematicaOptions+. I’ll place the shares on the TematicaOptions+ Select List, and I will update with position commentary like I would any other position on that list. Again, if you can’t stand a volatile ride I would say MOMT shares are not for you. Don’t be offended, I’m just trying to make sure subscriber eyes are wide open.



Apple doubles down on Cashless Consumption with Apple Pay Cash

Apple doubles down on Cashless Consumption with Apple Pay Cash

Leveraging its smartphone install base and the popularity of messaging Apple is bringing its Apple Pay Cash feature to market with its iOS 11.2. Currently available to those in the iOS beta program, Apple Pay Cash will offer stiff competition to Venmo, owned by PayPal (PYPL) as well as other “send cash” apps like Zelle used by JPMorgan Chase (JPM), PopMoney at Citi (C) and others that allow you to send-and-receive money virtually between you and  friends. While fees associated with this will be akin to collecting cookie crumbs, given Apple’s install base this has the potential to be positive contributor to Apple’s burgeoning Service business.

Apple is soft-launching direct, person-to-person payments in an iMessage today with the Apple Pay Cash beta. The feature, which was announced earlier this year, allows you to send and receive cash inside the Messages app on iPhones.

The program is launching in public beta today on iOS 11.2 beta 2, and you can opt in using the iOS Public Beta program here. Once you’ve updated, you’ll see an Apple Pay button in the apps section of Messages that allows you to initiate a payment. Payments can also be triggered by simply asking for money in a message or tapping on a message sent by someone else asking for money.

The source of funding is any debit or credit card you have currently added to Apple Pay. Apple will charge no fees for money that is funded via debit cards and an ‘industry standard’ fee for credit cards, likely in the few percent.

This card can only be used to send money or pay for things via Apple Pay, so it’s not a completely discrete “credit/cash card”, but it functions as one as long as you’re within Apple Pay. The reason for the card is multi-faceted, but one big one is that this allows Apple to fund payments to the card immediately. This means that when you get paid via Apple Cash, you’re going to be able to spend that money right away as long as it’s via Apple Cash to someone else or via Apple Pay at a retailer or website that accepts it.

Apple is working with Green Dot to power the financial mechanics of Apple Cash.

Source: Apple Pay Cash launches in beta today, letting you send and receive cash in Messages | TechCrunch

Barclays combines Disruptive Technologies with Cashless Consumption for voice payments

Barclays combines Disruptive Technologies with Cashless Consumption for voice payments

Several quarters ago we shared our view that after capacitive touch, voice would be the next interface to watch. We’ve seen adoption growth in smartphones with Apple (AAPL) and Siri, Microsoft (MSFT) and Cortana, and then in intelligent speakers like Amazon’s (AMZN) Alexa powered Echo products. We’ve even read about licensing deals between Amazon and appliance as well as auto manufacturers for the Alexa technology. Now Barclays (BCS) is combining this Disruptive Technology with our Cashless Consumption theme to enable voice payments.

If you have a Barclays bank account, you can now make payments simply by instructing Siri to do it.

The feature, added to the latest version of the company’s iOS app, uses the Siri integration for payment apps Apple introduced with iOS 10.

PayPal took advantage of this last November, but banks have been slow to do so …NordVPNMaking a payment is as simple as ‘Hey Siri, pay John Appleseed $10 with Barclays.’

As with PayPal, the exact wording shouldn’t be important so long as you specify the person, the amount and Barclays.

To prevent someone picking up your unlocked phone and asking Siri to make a payment to them, Barclays says several protections are in place. First, you need to opt-in to the feature.

Source: Barclays bank now lets customers make payments via Siri | 9to5Mac

Tencent scales thematic investments in payments, AI and cloud

Tencent scales thematic investments in payments, AI and cloud

Our Content is King theme isn’t the only one getting a lot of attention this week as more companies look to invest not only in payments, which we see as Cashless Consumption but also artificial intelligence, a slice of our Disruptive Technologies theme. As we look at these moves, we are reminded of the global nature of our investing themes. This means that Amazon (AMZN), MasterCard (MA), Visa (V), Facebook (FB), Alphabet (GOOGL), Apple (AAPL), PayPal (PYPL) and the like need to be aware of moves made by Tencent (TCHEY), Alibaba (BABA) and other players outside the US.

Tencent, the Chinese mobile games and social media company, is gearing up to increase its investments in online payments, cloud services and artificial intelligence.Still, with competition on the rise in the digital payments market, the investments are necessary. “We think there is still a lot of growth potential from Tencent’s cloud and payment business,” BOCOM International Analyst Connie Gu said in the Reuters report.

China’s Tencent isn’t only investing in artificial intelligence, payments and cloud services. Earlier this month, it showcased how it is also investing in other areas. Essential Products, the smartphone company that was started by Andy Rubin — the creator of the Android mobile operating system — raised $300 million in venture funding from a cadre of investors, including Tencent. According to a news report in The Wall Street Journal, the company announced the list of investors betting it can take on Apple and Samsung Electronics in the smartphone market, reported the paper.

Source: Tencent Increases Investments In AI, Payments |

Keeping powder dry with some exceptions like PayPal

Keeping powder dry with some exceptions like PayPal

As we get through the current storm of uncertainty and into calmer waters, we’ll continue to build out our Tematica Select Investments List. We recognize the current choppiness will likely be with us until we move past the Fed FOMC meeting in a few weeks time, but we also know volatile times like this can offer entry points that come along sparingly.While we continue to stay in a holding pattern on higher beta thematic candidates like Netflix ([stock_quote symbol=”NFLX”]) for our Connected Society thematic, the 10% drop over the last month in mobile payment company PayPal ([stock_quote symbol=”PYPL”]) puts the shares in the buy zone for our Cashless Consumption thematic that focuses on the accelerating move by consumers around the globe away from cash and checks to other forms of payment such as credit and debit cards, online payments and increasingly mobile payments.Most of us in the developed world are using credit and debit cards, and MasterCard ([stock_quote symbol=”MA”])and Visa ([stock_quote symbol=”V”]) are very happy every time you swipe one of their cards. We’ve also seen some movement toward mobile payments with the Google Wallet from Google ([stock_quote symbol=”GOOGL”]), whileApple ([stock_quote symbol=”AAPL”]) introduced Apple Pay almost a year ago. According to Gallup’s analysis, the push worked, at least to create awareness of this new product: Nearly two-thirds (65%) of consumers are at least somewhat familiar with Apple Pay. Awareness among current digital wallet users jumps to 78% and is highest (89%) among current Apple Passbook users.

In 2014, PayPal moved $228 billion in 26 currencies across more than 190 nations, generating total revenue of $7.9 billion, and the company ended the year with 162 million active user accounts, up some 13% year over year. Flash forward six months and PayPal exited 2Q 2015 with 165 million active customer accounts in 203 markets handling more than 100 currencies across its payments ecosystem that allows consumers and businesses to transact with each other online, in stores and on mobile devices.

Over the last several years, PayPal has used acquisitions to enhance its product offering and improve its competitive position in the payments industry. Past acquisitions include Braintree, an online-payment gateway used by other companies; Paydiant, an online storefront that retailers can use; and Venmo, an e-mail buddy network aimed at Millennials.

More recently, PayPal acquired Xoom to participate in the giant “remittance economy”, which refers to folks, mainly immigrants, sending money across borders. In 2014, people sent $436 billion in remittances to developing countries according to the World Bank, which projects that by 2016 global remittances will rise to $681 billion, with remittances to developing countries landing at $516 billion. Despite that growth, JPMorgan Chase ([stock_quote symbol=”JPM”]), Citigroup ([stock_quote symbol=”C”]) and Bank of America ([stock_quote symbol=”BAC”]) have scrapped low-cost services that allowed immigrants to send money to their families across the border. Remaining competitors in the remittance arena include Western Union ([stock_quote symbol=”WU”]) and Moneygram International ([stock_quote symbol=”MGI”]).

As impressive as those figures are, we find the following figure to be far more interesting — PayPal Payment Services process 30% of U.S. e-commerce transactions. Now think of how consumers are shifting their buying from brick and mortar stores to online offering such as Amazon ([stock_quote symbol=”AMZN”]), Macy’s ([stock_quote symbol=”M”]) QVC, Zappos and other e-tailors as their shopping medium moves from walking the mall to pinching and scrolling on a tablet or smartphone.

How does PayPal make money?

Like Visa, MasterCard and other by bank-sponsored credit-card operators PayPal operates within the interchange network, which charges a merchant a “take rate” of about $2.80 per $100 transaction on average. Most of that take goes to the card issuer and the rest to processors such as PayPal for facilitating the transaction. On about 40% of its transactions, PayPal takes the full 2.8%, because customers have transferred the money directly from their bank accounts. In these cases, PayPal runs the payments through its own network, away from the card companies’. Last year, transactions of these types accounted for 89% of the company’s net revenues of $7.9 billion. The remaining revenue was derived from a variety of services, such as interest and fees on credit receivables, subscription fees, and revenue sharing.

Think about it: Every time a person upgrades to a newer iPhone model, that’s another potential Apple Pay user. And as Apple adds more banks to the program and expands around the globe, that should mean more Apple Pay users, too. The same holds for Uber, Airbnb and others that like Apple Pay utilize PayPal’s Braintree payment gateway to complete transactions. Just because we don’t see people paying with PayPal in stores doesn’t mean it’s not being used. This makes PayPal a bullet play on mobile payments guns like Apple Pay and others.

Much like Visa and MasterCard, this means dollars go to PayPal whenever a transaction crosses the company’s Braintree-powered platforms. To me, that makes PayPal far more interesting as a “Buy the Bullets, Not the Gun” play on the Cashless Consumption thematic than many other options.

Over the next several years, Forrester Research sees US mobile payments growing from $52 billion in 2014 to $142 billion by 2019, and with new entrants such as Facebook ([stock_quote symbol=”FB”])entering the fray, PayPal’s behind the scenes gateway opportunities look promising, particularly for mobile payments.

The combination of this rising tide and bullet position that could expand the number of merchant and retail relationships now that PayPal is freed from eBay bodes well for continued top and bottom lie growth.  Today PayPal services roughly 75 of the top 100 online merchants and closing that gap could add meaningfully to 2016 expectations and beyond.

PayPal shares are currently trading at 23.5x expected 2016 earnings of $1.49 per share (up 20% year over year), inline with similar multiples for MasterCard and Visa, the latter of which is only slated to grow its earnings 14% year over year in 2016. Applying a discounted price to earnings growth (PEG) ratio relative to those accorded to Visa and other competitors suggests upside to $45 for PayPal over the coming 12-18 months.

With only a limited trading history for PYPL shares, to assess the downside we’ve looked at trough multiples for Visa over the last seven quarters and applying those multiples implies potential downside to $32 for PayPal shares in the coming quarters. Given last night’s closing price of $35.07 and a risk-to-reward ratio skewed to the upside, we are adding PYPL shares to our Tematica Select Investments List as part of our Cashless Consumption thematic. In the expected market chop, the closer to $32 PYPL shares get, the more aggressive our recommendation becomes.

 IPAY is Our ETF Play on Cashless Consumption 

For those looking to place client funds in a more diversified play on the Cashless Consumption thematic, in lieu of PayPal shares we’d recommend PureFunds ISE Mobile Payments ETF ([stock_quote symbol=”IPAY”]), which debuted in mid-July, and counts Visa (V), MasterCard (MA), American Express (AXP), and PayPal among its top holdings. On a combined basis those four positions account for 24% of IPAY’s overall holdings.