Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Discover Financial Services (DFS), eBay Inc (EBAY), And How Apple Inc. (AAPL) Can Help

Page 1 of 2

Source: Apple.

Press wires were abuzz this week as Apple Inc. (NASDAQ:AAPL) announced its latest iteration of the iPhone, and while the mainstream media largely focused on what this means for Apple Inc. (NASDAQ:AAPL), its suppliers, and other tech companies, this announcement could actually yield significant benefits to three companies in the financial services industry.

With the iPhone 5s announcement came news of the “Touch ID” — a biometric piece of technology that is a fingerprint scanner built underneath the singular home button on the front of the phone. This security feature will make for easier unlocking of the phone, but will also (and perhaps more importantly), allow users to authorize purchases through their phones.

Discover Financial Services (NYSE:DFS)eBay Inc (NASDAQ:EBAY), and Intuit Inc. (NASDAQ:INTU) are three companies that could reap huge rewards as users gain greater peace of mind in terms of making payments with their phones.

While known for its ever-popular e-commerce platform, eBay Inc (NASDAQ:EBAY) is also the parent company of PayPal, a payments service that allows its 132 million active users in 193 markets to send money securely without sharing their financial information.

eBay Inc (NASDAQ:EBAY)’s Payments business unit accounted for 42% of the company’s total revenue in the last quarter and saw its overall revenue jump 20% year over year. Yet while that is impressive growth in and of itself, what is even more impressive is that the transactions processed by PayPal outside of eBay Inc (NASDAQ:EBAY) were up 29% (to almost $30 billion) versus just 15% for those on eBay Inc (NASDAQ:EBAY).

In 2012, PayPal processed $14 billion in mobile payment volume, versus just $4 billion that it processed in 2011. They were expecting to only process $10 billion in mobile payments last year and beat their own expectations by 40%. Mobile payments represented just 3% of those on PayPal in 2011, versus almost 10% in 2012:

Source: Company Investor Relations.

In all of this, PayPal is poised to continue its position as a market leader in payments, and if consumers feel more secure making payments through Apple Inc. (NASDAQ:AAPL)’s new technology, eBay Inc (NASDAQ:EBAY) could reap great rewards.

In August 2012 PayPal and Discover Financial Services (NYSE:DFS) announced their joint effort to “bring PayPal into millions of in-store locations” across the globe. In this relationship, PayPal is given access to brick and mortar locations by utilizing the technological infrastructure provided by Discover Financial Services (NYSE:DFS).

In April of this year, Discover Financial Services (NYSE:DFS) announced it had signed contracts with 50 merchant acquirers that allow businesses to accept payments from customers. This allowed the companies to forecast that PayPal would be accepted at more than 2 million stores by the end of this year. Just a few weeks ago, it was also announced that TSYS, the world’s 10th largest payment processor per a 2012 Nilson Report, would also begin accepting PayPal through its relationship with Discover Financial Services (NYSE:DFS).

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!