Ted Bauman is a financial newsletter editor who works at Banyan Hill Publishing. He has degrees in history and economics that he earned while living in South Africa. After 25 years in that country’s not-for-profit sector, he returned to the United States along with his family. He now lives in the greater Atlanta, Georgia, area.
He recently wrote about cash and how most people don’t use it anymore. Ted Bauman asked his subscribers to think about the last time they used cash and suspected that for most of them it had been months to years ago. About the only time people use it nowadays is if they need it for a retail store that only accepts cash, or because they found some laying around in their home.
People use cards nowadays instead of cash, or a mobile app, to pay for things. Even at the gas pump, where people used to pay with cash far more likely than not, with the advent of prepaying people use cards there as well. Ted Bauman wonders what it’s going to look like once cash is barely used by anyone. Read more about Ted Bauman at Bloomberg.com
He sees ways for investors to take advantage of this move away from cash. Ted Bauman says that two companies that investors should avoid, though, are Visa and Discover. Credit card companies like these two won’t be where consumers turn for their payments in the future. He wrote that the best investment is PayPal. The reason for his enthusiasm for their stock is that they offer more benefits than anyone when it comes to going cashless.
Sharing the history of PayPal, he shares how this company started out named Confinity. They were a software developer that created security software. Over time they started to offer ways for people to transfer money online in a secure environment. They were then bought by eBay who used them to manage online payments.
PayPal was a pioneer without which Bitcoin and the other digital currencies likely wouldn’t exist. People became comfortable having their money in the cloud by using PayPal. Ted Bauman expects its success to continue for a long time.