Today I learned – 30th Jan 2020

Rise of contactless payment reported by Visa and Mastercard

It is so much faster and easier to just tap your card or phone on a reader than to use the chip or swipe. The frictionlessness of this payment method has clearly wowed users enough that it is on a rise, especially in the US.

In the card-present environment, we continue to see meaningful momentum in tap to pay, what we consider to be the most friction-free way to pay in person. We have reached a point where 1 in every 3 card-present transactions that runs over our network is [tax] versus 1 in 4 a year ago this quarter. This past year, we’ve doubled the number of countries whose face-to-face transactions are at least 2/3 contactless.

Transit continues to be a key user case and an important way to habituate tapping behavior. In New York City, on the NPA, Visa crossed 2 million taps in November from the beginning of the pilot and 3 million in January. The FDA recently announced the tap-to-pay expansion to their entire system by the end of 2020, and we are currently pacing a 350,000 Visa taps a week on the MTA and nearly 1 in every 10 transactions in the New York Metro area is a tap-to-pay on a Visa card.

Source: Visa in its Q1 2020 Earnings Call Transcript, provided by Atom Finance

Echoing the sentiment was Mastercard in its Q4 2019 Earnings Call

..On to contactless, where as I said, we’re making real progress. This quarter, contactless made up over 30% of global card-present purchased (inaudible). Contactless provides a frictionless and fast payment experience, which is opening new categories of spend, including displacing cash on small-ticket purchases. The U.S. point for growth on this front and the New York City MTA is a good example of the potential for rapid adoption by consumers. In fact, they surpassed 5 million taps since the launch in May. And the MTA has planned to roll out contactless acceptance system-wide by the end of 2020.

I’m pretty certain that U.S. contactless will keep growing throughout 2020 quite attractively. Because if you look at the numbers of the number of bank partners that have committed to issue contactless cards for a [minute], let’s even forget Apple Pay and Samsung Pay that enable every card through their archive to be used. If you just look at the number of cards, we are talking about 70% of our total cards in the U.S. market will be reissued over this 12-month to 14-month period. My own personal cards are already contactless from Citi.

On the acceptance side, kind of all new terminals going on are embedded with contactless. So (inaudible) large retailers Target and 7-Eleven and CVS have announced that they will accept contactless payments. And in fact, over half of U.S. card-present transactions are now happening at contactless-enabled merchant locations. And when the MT rolls in on system-wide in New York City, and there are other transit systems beginning to do the same in their cities, I think you will get the impetus.

Source: Atom Finance

Vietnam as an important emerging market for Apple

My country was mentioned repeatedly in the latest earnings call of Apple. In a positive light that makes me think that we are going to be, if we are not already, an important emerging market for the Cupertino-based company

Geographically, we established all-time revenue records in many major developed and emerging markets including, among others, the U.S., Canada, Mexico, Brazil, the UK, Germany, France, Italy, Spain, Poland, Thailand, Malaysia and Vietnam.

Source: Seeking Alpha

For iPad, we saw growth in key emerging markets like Mexico, India, Turkey, Poland, Thailand, Malaysia, the Philippines and Vietnam

Source: Seeking Alpha

Phone revenue of $56 billion grew 8% year-over-year, as we saw a great customer response to the launch of our newest iPhones. We set all-time revenue records in several countries, including the U.S. Mexico, the UK, France, Spain, Poland, Thailand, Malaysia and Vietnam.

Source: Seeking Alpha

Productivity and Business Processes keeps leading the margin game for Microsoft

Microsoft has three main business lines:

  • Productivity & Business Processes that includes Office 365 Commercial and Consumer, LinkedIn and Dynamics
  • Intelligent Cloud that includes server products and cloud services led by Azure, and Enterprise service
  • More Personal Computing that includes Gaming, Search, Windows and Surface

Azure likely receives the most attention, yet it is Productivity & Business Processes (PBP) that consistently took the crown in the margin game at Microsoft. In the latest earnings report, Microsoft reported almost 44% margin for PBP

Source: Microsoft
Source: Microsoft

Even though there have been only 2 quarters so far in 2020, the segment has generated more revenue and operating income than the full year 2019

Source: Microsoft

Weekly readings – 25th Jan 2020

The Case Against Huawei

America’s new favorite restaurants are Wawa, Sheetz and 7-Eleven. It’s interesting to see a shift in the behavior of consumers who prefer not walking around in big stores or driving to a fast food restaurant.

Why it only costs $10k to ‘own’ a Chick-fil-A franchise

Why Japan is so successful at returning lost property

A concerning piece on Bumble, its toxic culture and a CEO that doesn’t inspire a whole lot of confidence

From the darling of fast fashion to bankruptcy: the tale of Forever 21’s demise. This should be the perfect case study for inadequate management, failing leadership and inability to adapt to the changing environment.

The State of Mobile in 2020. App Annie 2020 Report

The SaaS Marketing Bible [41+ Strategies & Case-Studies]. Certainly some good bits of information in there

How Ghent, a city in Belgium, inspired Birmingham to encourage more pubic transit usage

“[A city’s] best car plan is a bike plan,” he said. “Providing more space for walking and cycling leads not only to more people walking and cycling, it also makes space for people who really need to use their cars.”

The Guardian

Ethiopia Pushes Privatization to Give Its Economy a Sugar Rush

Source: DuckDuckGo

An excellent ads by Apple

Weekly readings – 28th December 2019

The last Weekly readings episode of 2019. I have had fun doing this because this serves mainly as my notes. I hope you got something out of these notes

Nadella is killing it at Microsoft and won the Person of the Year crown from FT

Walmart’s strategy in the fight against Amazon.

The World’s Oldest Forest Has 385-Million-Year-Old Tree Roots. The sheer number is

Coolest things I learned in 2019

Rural America Turning to Grocers, High-Fee ATMs as Banks Leave. If I tell this to my dad, who idolizes America, he probably will say I am crazy!

Apple’s secretive work on a satellite project as a company priority

Why your brain needs exercise

This seems to be a massive issue in the future for Amazon, especially when its 3rd party business has become increasingly important

The Dubai – Saudi Arabia route is surprisingly lucrative for Emirates

What’s Amazon’s market share? 35% or 5%?

‘Amazon’s Choice’ Isn’t the Endorsement It Appears

India needs new infrastructure

I am surprised at how well Hello Fresh has been doing

Americans are retiring in Vietnam and other Southeast Asian countries

Weekly readings – 7th December 2019

How busyness leads to bad decisions

Why Taxpayers Pay McKinsey $3M a Year for a Recent College Graduate Contractor

How I Get By: A Week in the Life of a McDonald’s Cashier. Reading about her week is heartbreaking. The sad thing is that it’s common in America. Hustling is great, but it shouldn’t be used to describe the economic difficulties a normal person has to face in arguably the richest country on Earth

Israeli scientists find way to treat pancreatic cancer in 14 days

A revelation on how employees suffered emotional toll while working at Away

Apple will start the wireless movement on smartphones in 2021?