Martinta

Credit Card Interchange Fee Datapoint of the Day

You nailed some very important points as to why credit cards are valuable to both consumers and merchants.


On Jul 17 09:38 AM Hanoch wrote:

> There is a big advantage to consumers in using plastic over cash
> in terms of convenience. Personally, I don't like carrying large
> sums of cash around to pay for things, nor do I like constant trips
> to the bank or ATM to get more of it. Time is valuable. Moreover,
> I like a credit card statement each month as a convenient way to
> let me know how much and where I am spending. Thus, the credit card
> companies provide a valuable service for many consumers and, obviously,
> no service is free.
>
> The merchants complain about the interchange fees, but I have to
> think dealing with increased cash payments would involve additional
> costs to the merchants over electronic credit card networks, from
> the time it takes to process them at the register, from losses due
> to human error and employee theft, from the time it takes to manage
> and account for the cash, from increased security needs, and so forth.
> In addition, it would seem that merchants likely generate higher
> sales volumes when they accept credit cards. A customer without cash
> in his pocket is much more likely to buy something on the spot when
> a merchant accepts credit cards rather than go through the hassle
> of finding an ATM or going to a bank and then returning to the store.
> So, while it is easy to the measure costs of interchange fees in
> a vacuum, it seems, to get a more accurate read on this issue, you
> need to know how much the merchants are benefiting from accepting
> credit card payments.

Apple, Palm Lead Soaring Smart Phone Demand

I believe ChangeWave surveys are based only on North American respondents; consequently, they totally miss any trends related to Nokia, the largest smartphone vendor with 41% of worldwide share of sales to end-users in 1Q09 (Gartner).

Nokia's a Juggernaut, But What's Left to Conquer?

Thanks for the reply, but hasn't Nokia already made the necessary changes to the Symbian OS? How else are they able to produce the touchscreen Xpress5800, the E71, and the N95/97 which perform all of the popular smartphone features. Nokia has will also introduce the Ovi system, which I believe will include the ability to download applications.


On Apr 17 10:01 AM Steve Alexander (MagicDiligence) wrote:

> > Can you explain what you mean by "Symbian is not inherently a smartphone

Nokia's a Juggernaut, But What's Left to Conquer?

Yoda - Gartner group states that Nokia had 44% of worldwide smartphone sales to end users in 2008 (check Gartner press release web site), which is more than the next four competitors, including RIM, Apple, HTC, and Sharp possess combined.

In the U.S., Nokia smartphones have negligible share, but internationally, where most smartphones are sold, they are dominant.


On Apr 17 02:45 AM Fighting Yoda wrote:

> Nokia will not be able to make any significant dent in teh smart
> phone market, with dominant presence of RIMM and Apple, and other
> emrging players - Samsung, HTC, Palm, etc. Also Symbian strategy
> is risky at best.
> Smart phone is the growth and profitable sector, low end phones will
> have less growth and lesser margins in the current environment.<br/>
>
> I will not be a buyer of Nokia.

Who Will Win the Smartphone Wars?

Although both Apple and RIMM have seen significant growth in smartphone sales over the past year, they still have significant ground to make-up against Nokia's dominant worldwide smartphone market share.

According to Gartner, Nokia had 44% worldwide share of smartphones sold to end-users in 2008 (down from 49% in 2007), greater than the combined share of RIM (17%), Apple (8%), HTC (4% - only branded devices), and Sharp (4%).

Still Substantial Risk in Credit Card Investments

Very good point. Visa and MasterCard claim that there is a secular shift from cash to credit/debit cards for consumer purchases.

On Mar 11 09:31 AM Echo To All wrote:

> I understand your thesis, but your not quantifying the 'paper-to-electronic'
> payment change. We all know consumer spending will be down, and the
> market is not giving MA or V a free pass. They are currently trading
> at with a 2009 PE of 14-15. So I ask... if a PE of 14-15 too much
> of a premium for MA, that has beat (sorry... crushed) earnings expectations
> quarter after quarter.
>
> They are able to do this because the social change of paper-to-electronic
> payment is extremely difficult to quantify.
>
> I'm not saying MA is going to the moon, I'm just saying ur thesis
> needs to account for the social change. And your not doing this.
>
>
> As for the charts, they are holding up very well. Get worried when
> MA breaks the 120 level. That is when the charts will indicate a
> fundamental issue not yet revealed.