“It’s an achievement for a local company to join a global payments group like Square but they are still at the smaller end of the payments/BNPL universe. Size does matter and reach is paramount for merchants who want to offer a range of payment providers but must nearly always include bigger players like PayPal,” said John Lobb, portfolio manager at Insync Funds Management.
PayPal wins for merchants and many purchasers because:
- PayPal has 396 million customers
- PayPal processes approximately 60% of all online retail spending (ex-China)
- PayPal thrives without late-fee income unlike most competitors
- PayPal is already indirectly in the Chinese market via Go Pay and Shanghai-based Union Pay with potential to reach 500 million Chinese shoppers
- Information Technology resources – PayPal launched its BNPL response far quicker than any smaller player could imagine.
“Merchants don’t want a window full of logo stickers for payment providers and Millennials are too savvy to have a phone full of BNPL apps. They want proven providers when managing their money and money transfers,” said John Lobb.
Other global tech stocks/themes that John Lobb can comment on include: Nvidia, Amazon, Visa, Apple Pay, Nintendo, Hydrogen, and Low Emission energy.
Disruptions stocks can provide investment returns now
Insync’s investment strategy concentrates on disruption and its interrelationship with a global megatrend rather than just investing in disruptive companies.
“Our investment philosophy revolves around high-quality companies. We look for companies that are benefiting from disruption, have long runways of growth through exposure to global megatrends and are highly profitable,” commented Mr. Lobb.
