Nine Threats to Banks

Cryptocurrencies are a menace because they can form the basis of a wide variety of financial products including loans, bonds, and savings account. A major threat to banks is that fast-growing altcoins such as Bitcoin and Ethereum provide a better hedge against inflation than cash. Particularly dangerous to banks will be cryptocurrency Visa and MasterCard products that allow payment at brick and mortar stores with altcoins. Also on the horizon are cryptocurrency banks such as Change Bank. A major threat is that cryptocurrencies will become the money transfer mechanism of choice, allowing consumers to cut out banks completely.

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Alipay Comes to America

Tim Cook’s worst nightmare then would be Walmart accepting Alipay but saying no to Apple Pay.

That would be a real coup for Ant because Walmart operates 4,672 stores in the United States; including 3,522 supercenters and 660 Sam’s Clubs. It might also force Apple and Alphabet to add QR code to their mobile wallets.

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Does Square Make Money?

Square (NYSE: SQ) is one of those companies that looks like it would be a great value investment on paper.

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The Incredibly Shrinking American Express

Although its business is shrinking, the third quarter earnings report indicates that American Express is still a cash rich company

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American Express is a Great Contrarian Play in Finance

There is no better contrarian play in finance than American Express right now. It is making a lot of money, and in a great position to take advantage of the exciting opportunities offered by Fintech.

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Is Desperate American Express following in Lending Club’s Footsteps?

Like their brethren at PayPal (NASDAQ: PYPL) and Square, American Express’s leaders think they can limit the risks from such lending with their detailed knowledge of spending habits. For example, Amex might extend more credit to a borrower, who only uses his credit card to pay for business supplies. The company deny credit to somebody who uses her card to pay off a bar tab or a casino.

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