The world of payments is changing rapidly. The transition from cash to digital payments is a long-term structural trend that few investors can ignore, or banks for that matter. The growth of e-commerce, smartphone penetration and the adoption of frictionless payment methods (e.g. mobile wallets) are transformational.
Just looking at the fantastic growth numbers in this sector, we see 7% CAGR from 2017 through to 2030. Online card payments are anticipated to expand at around 10% annually. But it's not just about overall volume growth - fraud prevention and scale are big themes in the space which successful providers will need to address.
This week we are tipping a European stock, a pioneer in the unified payments space which offers merchants a full package composed of settlement, reconciliation, risk management and acquisition all in a perfectly formed, cloud-native solution.
This is an ever-evolving value chain and we think this company could provide an important foundation stone for future growth. For example, it is on the cutting edge of personalistion of the payment process, which analysts feel will be more and more critical for merchants going forward.
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