Financial expert Ted Bauman once in a while reminds his followers that when it comes to spending cash is no longer the king. In of his current email newsletters, he asked his followers to think back to when they last used cash to pay for something. A few months ago? Possibly years? For many people, the last time they used cash was because they found some shoved away in a drawer and decided to get rid of it as some mom & pop operation that doesn’t accept debit or credit cards. In fact, even those types of small businesses will often accept Stripe or PayPal nowadays.
Ted Bauman pulled up research the Federal Reserve did a few years ago. At that time, 35 percent of transactions in retail stores were performed with cash. Most of those were for purchases under $25. Even if people use cash it’s often just for small items making cash an ever smaller part of the retail landscape. Read this article at Forexvestor.com.
Ted Bauman writes an investment newsletter, The Bauman Report. He brought up cash because he says that if people aren’t using it anymore there must be a way to make money from this trend that is unstoppable. It’s because cash is no longer king that Ted Bauman believes PayPal is a fantastic company to invest in. He sees them as a very experienced company that has changed retail both on- and off-line.
There are other ways to pay for things that replace cash, of course. There’s debit cards, credit cards, Apple Pay, Google Pay, and so on. PayPal, though, offers a lot more benefits than anyone else and has unrivaled experience in this space. They’ve been a publicly traded company since 2002 and were around for a few years before that.
As of 2010, PayPal had more than 100 million users in over 200 countries. They’ve only gotten a lot bigger since. Ted Bauman points out they were pioneers in creating an online payment system. They offer secure payments so that both buyers and sellers are confident in the transaction. They became independent of eBay in 2015 and now have over 300 million users.