By Matt McCallApr 19, 2017
We talked recently about how millennials are attached to their smartphones, always connected to the world around (and not so around) them and completely dialed in on how to take advantage of everything at their fingertips. But that trend goes beyond millennials ordering food directly to their front doors – it has trickled down to the consumer as whole.
Consumer spending accounts for two thirds of the U.S. economy. There are millions of transactions taking place every single day, but the way those transactions are being made is undergoing a major transformation. We already saw the shift from checkbooks to credit and debit cards. Now we’re seeing a shift from plastic to technology.
By the end of this year, the number of mobile phone users is expected to reach 4.7 billion, and did you know that 70% of transactions are already done electronically? By the end of 2018, it is estimated that mobile device transactions in U.S. stores will total $189 billion, up from a mere $1.8 billion in 2013. That’s a whole lot of growth to capture.
But these kinds of transactions aren’t solely between consumers and businesses. There are also person-to-person money transfers via mobile apps like Venmo, which is owned by PayPal (PYPL).
No longer is there a need to carry cash, credit cards or even go to the bank. Nearly everything can be done on your phone, whether it’s sending your friend $15 for spotting lunch or paying the sales clerk at the grocery store for your large haul. Simply click, tap and go. Payment has never been simpler or more profitable for savvy investors.
Stay tuned for more ways to play the trends within the Technology Revolution!
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