Ted Bauman’s latest reminder to his followers is that cash is no longer king. In a Banyan Hill Publishing newsletter, the subject was covered with some useful advice. The letter started with a challenge for readers to recall the last time they used cash for a transaction.
Although some people still use cash for a few small purchases, they make most transactions with plastic cards or through apps and auto-pay features on websites. Cash was a popular payment method for gas and retail goods in the past. Since people must prepay for fuel at nearly any gas station now, they typically use credit or debit cards to pay instead of cash.
They also use cards in retail stores more often. According to research from the Federal Reserve in 2016, about 35 percent of transactions were made with cash. However, the majority of those cash purchases were for amounts under $25.
Changing Cash Trends
With the shift toward cashless payments, the $100 bill became America’s most popular type of circulated currency. However, this does not mean that people are spending more cash today. Most people have watched cashiers hold up $100 bills and examine them carefully to verify their authenticity, and this experience can be embarrassing to some people. The majority of $100 bills that are being handled and exchanged are being used for savings. In the Banyan Hill letter, the author referenced Ted Bauman’s Smart Money portfolio for better options than saving cash at home or in a bank account.
Ted Bauman provides some creative ways for investors to take advantage of the shift toward digital payments. His expertise comes from over 25 years of experience working in the nonprofit sector with housing and finance. He attended college in South Africa, earned two degrees and spent several years there in roles that let him help people attain housing in impoverished areas.
Additionally, he spent time as a consultant for financial and home planning issues, which vastly broadened his knowledge. At that time, he worked with multiple agencies and organizations including the United Nations, prestigious European grant providers and South Africa’s government. Ted worked in a leadership position with Habitat for Humanity in the late 2000s before he became an adviser and an investment newsletter author.
Investors Can Benefit From The Cashless Payment Shift
The Banyan Hill letter warned readers to avoid navigating toward companies such as Discover and Visa. In the future, credit card companies may not be the most lucrative options with newer cashless payment platforms emerging every year. Although Google Wallet and Apple Pay are popular, there are better cashless payment companies for investors. Ted Bauman recommends PayPal as the most lucrative investment opportunity.
On the New York Stock Exchange, PayPal is classified as PYPL. It is one of the pioneering companies of cashless online payments. In the past, it was exclusively used for eBay payments. The company’s design protected both merchants and buyers on the popular online auction site.
Today, it has grown into a global company that is used for everything from sending personal gifts to paying independent contractors. PayPal became an independent company and separated from eBay in 2015. It now has more than 244 million users around the world, which makes it the leader of the online payment market.
In a 2017 Statista report about preferred online payment platforms, almost 40 percent of respondents in a survey said that they preferred PayPal over other platforms. A little more than 40 percent of the respondents said that they preferred credit cards. Recently, PayPal also launched its own credit card option with the cooperation of Mastercard.
The Strength Of PayPal
Venmo is another popular online payment app that PayPal owns. With this app, people can quickly transfer cash to other users. It is especially popular with younger people. For example, if a group of friends are all pitching in to pay for food delivery but a few of them do not have cash, they can use the app to send money to the person who is paying for the order. One of Venmo’s biggest competitors is Square, which held a slight lead in download volume recently. However, Venmo still boasted $18 billion in processed payments during its first quarter this year.
Since the cashless payment marketplace is enormous, there is plenty of room for more competitors. PayPal is making it clear that it plans to maintain a leading role. Recently, the company released its PayPal Here feature. It is a point-of-sale app that lets people accept payments through the popular site anywhere, and the design is similar to Square’s app that allows such payments. With a PayPal credit card reader and the smartphone app, anyone can process payments instantly. Since PayPal separated from eBay, its revenue grew by an astounding 20 percent. Also, 2018 has been an excellent year for PayPal with optimal growth in each quarter so far.
Ted Bauman’s Investing Advice
Ted Bauman encourages investors to buy stock in PayPal right now. Shares went up by more than 20 percent since their low point in May. With a good 50-day moving average, PayPal saw solid price support. PayPal is still in the rebound phase, which means that it is a good choice for bargain investors. The 14-day Relative Strength Index for PayPal is more than 50 percent and is on an upward trend. For investors, this means that the stock is not overbought and that momentum is growing.
However, there may be turbulence in the $95 region according to Banyan Hill’s research. Ted predicts a complete recovery for the stock pick with the holiday shopping season approaching.
Investors who want to follow Ted Bauman’s top picks can subscribe to one or more of his newsletters. He authors Plan B Club, Alpha Stock Alert and The Bauman Letter. Readers can also keep up with limited free advice from Ted Bauman on Banyan Hill’s main site. Ted joined Banyan Hill Publishing in 2013 and has helped many average Americans make smarter investments.
In addition to currencies and payment systems, Ted offers advice about investments that relate to finance and the housing market.
What Do Other Investment Advisers Say?
Ted encourages investors to do their own research about companies and related economic factors when they make decisions. Some other investing experts are recommending PayPal as a good cashless payment platform for investors.
However, several advisers are also recommending other companies such as Visa, Mastercard and credit card providers. Square is recommended by some, and several advisers recommend payment platforms such as Apple and Google. Fiserv and Alibaba are also on some lists of recommendations.
Investors can learn more about why Ted Bauman recommends PayPal over other cashless systems in his newsletters. When Ted provides advice for his subscribers, he also backs it with research.
As it is with the other investing experts at Banyan Hill, Ted Bauman was selected as an editor of The Bauman Letter because of his comprehensive research abilities, his vast knowledge and his proven track record of successful investing. Ted does not base his picks on popular investment news sources alone. He knows how to gather other important pieces of information to accurately predict trends and the performance aspects of companies in his markets of expertise.
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