Will money till exist in the tomorrow’s World?

Notes and coins as we are used to know will last forever or they will be completely replaced by virtual, electronics money? In very long term I guess so. What it is extremely interesting to analyse and think about it is the increasing number of electronic transactions:
-To pay at the stores
-To pay for services
-To pay on line

It is a trend which will be hardly interrupted and that will keep going up.

Value Finance portfolio with his long term outlook has focused on this niche sector and during last months has had an interesting investment opportunity: the Visa’s IPO.
Visa is the world leader in electronic transactions, distancing by far their two main competitors: Mastercard and American Express. Its management is focused to enlarge the market to whole World, in next months Olympics Games in Beijing will represent an incredible opportunity for Visa, which is Worldwide Olympic Partner, to enlarge its influence also in those far east market. China and India represent a huge potential in next years with over 1,5 billions of new potential Credit Card users that will pass the poverty level and they will start buying.

The management's strategy is active and focusing not only in faster growing markets, but the strong point is the view on the new projets and business as prepaid cards and mobile phone money transfers that they will be became more and more important in next future.

Furthermore, Visa has a strong advantage compared to other companies: they do not loan money, its revenues is linked to money transaction and services paid by the banks and by the customers: no exposition to ‘subprime-like’ problem.

In next post will analyse the financial statements and other tangible assets of Visa Inc. Stay tuned!