A Tech-Related Investment You Probably Aren’t Aware Of

When it comes to credit cards, I’m part of the 84%. Chances are, you are, too. I’m referring to the fact that 84% of American adults, including myself, have at least one credit card in their wallet. There are more than a billion credit cards in circulation in the U.S. That’s a lot of plastic. […] You're receiving this email as part of your subscription to Michael Robinson’s Trend Trader Daily [Unsubscribe](. [Trend Trader Daily] A Tech-Related Investment You Probably Aren’t Aware Of December 15, 2023 When it comes to credit cards, I’m part of the 84%. Chances are, you are, too. I’m referring to the fact that 84% of American adults, including myself, have at least one credit card in their wallet. There are more than a billion credit cards in circulation in the U.S. That’s a lot of plastic. And make no mistake, these cards have gotten a number of people in financial trouble. Today, 3 out of every 5 Americans have credit-card debt. The average cardholder owes close to $6,000. It’s a sad situation for many consumers. But it’s evidence that digital payments at stores and online have become the backbone of our consumer-driven economy. In a moment, I’ll reveal a supply firm that is poised to profit from America’s obsession with credit cards. But first, allow me to set the stage... A Major Problem As I hinted at above, credit-card debt is a major problem. This past quarter, balances hit a high of more than a trillion dollars. That’s a record $154 billion increase from the year-ago period, according to data from the Federal Reserve Bank of New York... And it’s the largest jump the Fed has seen since it began tracking this data nearly 25 years ago. Consumers aren’t just using credit cards more often. They’re also using debit cards. In 2012, U.S. debit-card transactions totaled around $47 billion. But by 2021, that number had nearly doubled to more than $90 billion. On some level, this spending activity shouldn’t shock you. After all, consumers need to buy things. And they’re simply opting for plastic over paper... But that’s exactly where a company like Visa (NYSE: V) can deliver investors like us noteworthy gains... A Technology Play Let me make one thing crystal clear. I’m not suggesting investing in Visa as a way to profit off of consumer debt at a time when many Americans are struggling financially. A lot of consumers need access to credit simply to pay for things like food or utilities. My interest in this company is purely for tech reasons. Let me explain... You see, outside of a single company in China, Visa is the largest card-payment network in the world. It handles more than half of all card payments, amounting to some $10 trillion a year. This network is called VisaNet. And it’s a sophisticated operation the company has invested in for many years. Sure, VisaNet connects more than two billion debit, prepaid, and credit cards. But it also covers more than two million ATMs, and operates in more than 200 countries. It also works with more than 15,000 financial institutions. Visa’s Vast Network With half of card payments relying on VisaNet, Visa has gone to great lengths to make sure its network is reliable... And this involves routing each transaction through one of four high-speed data centers located in Colorado, Virginia, London, and Singapore. Each facility is among the most secure locations in the world. Each has the ability to generate its own power if the grid goes down, and is fully protected against terrorist attacks, criminals, and natural disasters. I view this as a great way to make money off the nation’s financial system without concerns about the impact of interest-rate changes. Why? Because plain and simple, Visa is not a bank. It doesn’t issue loans or even the cards that use its VisaNet system. Rather, this company licenses its technology and access to its network, serving banks, credit unions, and payment processors. This gives Visa a savvy business model with steady cash flow. Visa takes a 2% cut from each transaction. And with more than 80 billion transactions made a year, that percentage really adds up. Long-Term Potential Perhaps that’s why Visa’s per-share profits have grown an average of 24% over the past three years. The company’s earnings growth outpaces the likes of Meta (META), Apple (AAPL), and even Microsoft (MSFT). At the end of the day, Visa is a company uniquely positioned to cash in on America’s rising penchant for digital payments... And a great tech-related investment for your portfolio. Cheers and Good Investing, [Michael Robinson] Michael Robinson Chief Investment Officer Trend Trader Daily   Copyright © Trend Trader Daily, All rights reserved. You signed up on []( Our mailing address is: Trend Trader Daily 1125 N. Charles Street Baltimore, Maryland 21201 [Update Subscription Preferences]( | [Unsubscribe from this list]( RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. 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