The Lemon Fool

I am interested in Digital Wallets replacing traditional banks and monetising their user base through paying for goods, short term loans, longer term loans and mortgages and to a lesser extent introducing simple investment products.

I’m looking at Square CashApo, PayPal Venmo, Alibaba’s AliPay, Ten Cent and Mercado Libre.

These companies have 100s of millions of users to monetise.

My question is, what is to stop Apple and Google from offering the same overdrafts, short & long term loans etc? Apple alone has about 1 billion iPhone users. Why would Apple and Google not become the prime brands in FinTech?

Why would you invest in Square or Alibaba instead?

Thanks

I wouldn't mind them stealing business from banks. I'm long MasterCard and PayPal.

Best wishes

Mark.

I think at some point Apple and Google will move into finance, but they will probably do it by just buying an existing bank.

Google > Visa
Apple > Mastercard