
How to Invest in Cashless Payments?
Visa and Mastercards have a monopoly on debit card transactions, with their logos featuring about 80 percent to 85 percent of all payment cards. In recent history, the two have accounted for about 75 percent of all card transaction volume.
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CIO Applications Europe | Thursday, September 18, 2025

Fremont, CA: As the pandemic fades, more people may return to shopping in stores, but that doesn't mean they'll be paying with cash. The trend toward cashless payments has intensified in the last year of socially distanced economic activity, which had been steadily expanding over the previous decade.
According to a survey by financial services business Square, cash transactions at its US retailers have fallen from more than 50 percent in 2015 to about 30 percent today. This includes a decline of 8.3 percentage points in the previous year.
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For investors expecting the cashless payments trend to continue, here are three ways to invest that take advantage of it.
Merchant Acquirers
Without a way to deal with financial institutions and process all those swipes, dips, and clicks, a business can't accept digital payments. Merchant acquirers include payment processing technology.
Fidelity National Information Services and Fiserv are two of the largest companies in the increasingly integrated space. Keeping market share is valuable because switching costs are high for the banks, retailers, and financial institutions that use these processors.
Furthermore, since processing payments has high fixed costs and low marginal costs, Fidelity National and Fiserv are able to deliver better pricing while maintaining healthy profit margins. As a consequence, the large corporations continue to expand in size, and they are able to buy smaller rivals to achieve a competitive edge.
Payment Networks
One must use another method to transfer money from their bank account to the merchant's account if they are not handing over real banknotes. Visa and Mastercard are two major payment networks that assist in smooth communication between customers, processors, retailers, and banks. When customers swipe their credit cards, these companies seamlessly transfer funds from one account to another.
Visa and Mastercard have a monopoly on debit card transactions, with their logos featuring about 80 percent to 85 percent of all payment cards. In recent history, the two have accounted for about 75 percent of all card transaction volume.
Since there are high fixed costs associated with creating a broad payments network, but low marginal costs associated with conducting more transactions, scale is critical. Visa and Mastercard have already developed all of the necessary alliances to capitalize on the rising trend. As a result, as volume grows, it almost immediately affects the bottom line.
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