The “war on cash” was one of the biggest and sustainable long-term trends in the market today, but the COVID-19 pandemic could be the thing that catapults it into overdrive. As people eschew traditional brick-and-mortar stores and are more reluctant to interact with others, contactless card payments have continued to take market share in the pandemic.
So while overall spending is depressed right now, on the other side of the pandemic, digital payments should continue to eat up market share, especially in developing markets that have more traditionally used cash.
Therefore, after the COVID dip in markets, it wouldn’t be a bad idea for investors to scoop up a basket of the world’s best digital payments stocks. But if you have limited capital available, which “war on cash” stocks should be first in line?
After a 66% rally off the March bottom, Mastercard’s stock (NYSE: MA) looks fully valued based on its historic P/E multiples. Mastercard MA , the second-largest global payment solutions company in the world, has seen its stock rally from $203 to $338 off the recent bottom compared to the S&P which moved around 50%. The stock is leading the broader markets as investors are positive about a rebound in consumer demand over the coming months, leading to higher transaction volumes. Notably, the market has witnessed some negative movement since early September
Covid-19 and the social distancing it requires has pushed more of our purchasing online. In fact, since March an extra $107 billion has been spent online, according to Adobe Analytics.
For small business owners forced to close their doors for months and now still seeing dramatic drops in walk-in traffic, that online shift and exposure to new customers has likely been a lifeline. But it also may mean they aren’t charging the necessary sales tax on those purchases. According to a recent survey by Avalara, only about half of businesses are familiar with the sales tax rules for online transactions with customers in other states.
As state and local governments are grappling with major budget deficits over the coming year, they’re going to be diligent about collecting all the tax they’re due. That means online sales taxes could potentially be a big
To pay with cash or credit has long been a business owner’s dilemma. In one camp are those who use a debit card to pay for all their business expenses, and in another are business owners who use credit to cover their outlays. The right strategy for your business depends on your spending habits, the cash in your coffers, and your financial temperament.
Business debit card vs. credit card
Before you can make an informed decision about using a business debit card or a business credit card, you have to understand the differences between the two – and there’s a lot of them.
What is a business credit card?
Business credit cards give you access to a revolving line of credit that you can use to make purchases. In exchange, you pay interest and fees on your balance, known as the annual percentage rate or APR. The APR is the
Cash-back credit cards aren’t only good for consumers. They can be a great way for business owners to maximize their savings – if they’re used responsibly.
The last thing any business owner wants is to rack up credit card debt, but if you can pay off your balance each month, cash-back credit cards can benefit your business in several ways.
What is a cash-back credit card?
A cash-back credit card gives users cash rewards every time they make qualifying purchases. Those points, or cash rewards, can be redeemed for a statement credit, a gift card or a check. Some credit card issuers offer flat-rate cash-back credit cards with rewards that apply to all your purchases; others focus on specific spending categories.
For small business owners who make a lot of purchases each month, a cash-back credit card can yield serious cash rewards. “Cash-back cards are even more useful for a