Stay constructive

Visa. What a business! Along with MasterCard, the company is trying to send cash into the afterworld, one swipe at a time. The reason why Visa remains extremely attractive as an investment is clear, whilst politicians may think that the company charges too much for their services, the fact is that they have engineered global payment networks that work like clockwork and is easily accepted at most global pay points. There is no need to get travellers cheques, there is no need to get cash and get ripped off on the exchange rate. You can draw money out of any ATM anywhere in the world, in the local currency if you need cash when you have arrived at your destination.


"Digital commerce is rapidly evolving due to the introduction of new technologies. As the world becomes more connected, every device, car, or appliance becomes a place where secure digital commerce can take place," said Rajat Taneja, Executive Vice President, Technology, Visa Inc. "I am excited to expand our technology research efforts and have Min lead Visa Research Labs. This effort has the potential to shape the way we pay and get paid in the future, and transform the lives of millions of unbanked consumers by finally providing them with access to secure digital commerce."


And that is exactly it. It is evolving and keeping pace. Buffett reckons that in 50 years time the Dollar will still be the reserve currency of the world, he is possibly right, you know. And the payment systems pioneered by the networks will be the ones that the likes of Apple Pay uses. Apple does not want to reinvent the wheel, they want to use the existing infrastructure. And if that means not having a wallet, then I am all for just having a phone with fingerprint technology. Obviously there are going to be regulatory issues from time to time, and this is linked heavily to the consumer cycle, we continue to think that governments WANT more electronic payments and consumers in the developed world look better than before. At around 24 times forward earnings, you might think that looks stretched, it is the cheapest that the company has looked in nearly three years. Buy.