5 Top Holdings in the PureFunds ISE Mobile Payments ETF

Mobile payments is one of the hottest sectors in the banking and technology markets. For investors keen on this market, investing in an ETF might be the best way to go. The Investing News Network sat down with PureFunds CEO Andrew Chanin to gain some insider insight into the market’s most popular ETF, the PureFunds ISE Mobile Payments ETF (NYSEARCA:IPAY).

Move towards mobile payments

Mobile payments is “an interesting area to us,” says Chanin. The market is seeing a “large transition towards mobile payments,” which constitute “one of the more established sectors of the fintech space.” “Many different companies are all in the space, which allows for a large area of competition.” Everything from card networks to software and processors can be integrated under the digital payments space.
The reasons for this sector’s increasing popularity are numerous. From “faster transactions, lower transaction fees and increased ease of use,” this market appears to be the future of banking, as more and more consumers “opt in to mobile payments solutions.” However despite the clear advantages of mobile payments and the industry’s obvious growth of the market, most “financial service ETFs are usually looking at larger banks.” Chanin’s mobile payments ETF seeks to address this market gap.
As the list below illustrates, the largest holdings the PureFunds ISE Mobile Payments ETF aren’t necessarily pure-play companies. However, the do give investors a sense of who the big players are in this market. And, if you want to avoid an ETF entirely and invest in specific stocks, these top ten holding might be a good place to start.

Top 5 holdings in the ETF

• Visa (NYSE:V): Visa is perhaps the quintessential payments technology company. It operates a processing network, VisaNet, which facilitates authorization, clearing and settlement of payment transactions across the world. The company also offers a suite of digital, eCommerce and mobile products and services, which might be of the most interest to investors in the mobile payments space.

• Mastercard (NYSE:MA): Another familiar name, MasterCard is a technology company that connects consumers, financial institutions, merchants, governments and businesses. The Company operates through payment solutions segment. Like Visa, the company is investing significant resources in the mobile banking arena.

• Global Payments Inc. (NYSE:GPN): Global Payments Inc. is a provider of payment and digital commerce solutions, operating in both North American and International merchant services. These services provide payment solutions for credit cards, debit cards, electronic payments and check-related services in industries as varied as financial services, gaming, government, and healthcare.

• American Express Company (NYSE:AXP): American Express Company bills itself as a services company. The company’s principal products and services are charge and credit payment card products and travel-related services. Like the other companies on this list, American Express Company operates globally.

• Discover Financial Services (NYSE:DFS): A direct banking and payment services company, Discover Financial Services operates through two segments: Direct Banking and Payment Services. These diverse products and services (including personal and home equity loans and the PULSE automated teller machine) are operated through the company’s subsidiaries.

All told, these top five holdings give a clear idea of the biggest and most influential players in the mobile payments space. And if all of these stocks sound appealing, the PureFunds ISE Mobile Payments ETF might be an intriguing option for keen investors.
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Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.