As we undergo a fintech revolution, driven by the advent of blockchain adoption among payment processors, and an increase in market acceptance for cryptocurrencies leading to a sharp increase in e-transactions; we see the time is now for a financial blockchain takeover.
Our research and due diligence indicates the following company: NetCents Technology Inc. (OTC: NTTCF / CSE: NC), a junior financial blockchain company, with an advanced e-wallet for users, that can handle payments from traditional currencies and cryptocurrencies in a way that’s safer, faster, and at a much lower cost to both merchants and consumers.
According to a report by McKinsey, titled Global payments 2017: Amid rapid change, an upward trajectory, the global payments market is projected to grow at a rate of 7% over the next five years, making payments a $2-trillion-dollar-industry by 2020.
Big gains are happening across the payments and blockchain sectors, and within the surge several companies have emerged with triple-digit gains in the last year, including Baozun Inc. (NASDAQ: BZUN), Square, Inc. (NYSE: SQ), and HIVE Blockchain Technologies Ltd. (OTC: HVBTF) (TSX.V: HIVE).
Overall, both payments companies and blockchain companies had big years in 2017— But we we believe that the blockchain aspect in the financial sector still has plenty of room to grow. According to research from PitchBook late last year, blockchain investments had topped $4.5 billion by Q3 2017.
So for investors looking for a strategy that can effectively mesh the exploding global payments market, with the innovative blockchain and cryptocurrency sectors—we believe it’s wise to find companies with significant market advantages on both sides of a payment transaction.
Which has led us to follow NetCents Technology Inc. (OTC: NTTCF) (TSX.V: NC).
Many of the top payment companies are well beyond the breakout phase, and have already seen their biggest gains—But we firmly believe NetCents is poised for a big 2018 and beyond.
NetCents has already established FOUR cornerstones that we believe will lead them to success:
- A market-ready platform;
- Established contracted merchants;
- An active database of users;
- Its own proprietary currency.
The Entire Cryptocurrency Market is Expected to Go WAY UP — Up 536% by 2023
The Global Cryptocurrency Market is expected to grow from its 2017 mark of $541 million to $2.9 billion by 2023, at a CAGR of 32.31% from 2017 through 2023.
Therefore, with the rise of cryptocurrencies, payments processors looking to maintain relevancy among merchants and consumers alike, it would seem that widespread adoption of cryptocurrencies for payments is inevitable.
Where NetCents holds an early-adoption advantage going forward is two-fold: the company’s platform accepts multiple cryptocurrencies; and the company is in the final stages of formation for its own cryptocurrency—the NetCents Coin or “NCCO”.
Comparable Companies on a GREAT RUN — Average 312% Gains YOY
Through our research across both the payments processing and blockchain spaces, there are three standouts whose prices increased by an average 312%+ over the last 12 months, and one particular company caught our eye (NetCents Technology) that has a standout portfolio, and is coming out on the world stage with multiple industry advantages.
However, it has yet to be justly rewarded by the market. We believe that the stock should be an easy double or triple, at minimum.
After we sampled a group of leading payments processing fintech companies and blockchain developers, we identified a significant Year-Over-Year trend—Each of these companies have consistently made technological breakthroughs, and saw massive gains to their market caps:
Baozun Inc. – 306% gain year-over-year, rising from $15 to over $45 since March 2017.
Square, Inc. – 289% gain year-over-year, rising from $17 to $49.20 since April 2017.
HIVE Blockchain Technologies – 341% gain since announcing move into cryptocurrency.
Across all three, that’s an average gain of nearly 312% over the last year—and two of these are already multi-billion corporations! Higher returns for juniors is a typical trend across most sectors.
Therefore, we applied what we witnessed from these three breakthrough fintech companies, and applied it to junior NetCents, prior to what we believe will be its big breakout.
NetCents Technology—Over 14,000 Merchants Already Contracted, 28% of All Online Stores
One of the biggest hurdles to any payment processing platform is widespread adoption. But as western societies and the developing world both are witnessing a surge in smartphone usage, so too will merchants and consumers raise their confidence levels in the use of eWallets for payments and transactions.
That is why we’re confident in our feature pick, NetCents Technology Inc. (OTC: NTTCF) (TSX.V: NC).
NetCents already has four revenue streams in place, backed by access to thousands of US-based merchants, including:
- A 5-year exclusive revenue-sharing agreement with Aliant, giving access to over 7,000 US-Based merchants and 15.5 billion transactions with a value of $550 billion
- Flexepin distribution network access of 7,000 retail locations, through NetCents Coin
- Poynt gives users the ability to use NetCents Coins, Bitcoin, Ethereum, and Litecoin in their NetCents eWallet to settle bills using a mobile app and smart terminals
- Through over 37 million downloads, WooCommerce powers over 28% of all eCommerce sites
Through NetCents’ payments processor, merchants and consumers (users) can transact anywhere (instore, and online) with NCCO, BTC, ETH, and LTC, with ease.
The NCCO cryptocurrency was launched in November of 2017, and is an asset-backed currency that’s established on the company’s NC Exchange, with the objective of being adopted as a daily transaction currency.
Through the NC Exchange, merchants will be incentivized by the concept of instant settlements. Delays on receiving payments from traditional merchant terminals can become incredibly costly, especially on small business owners.
As well, NetCents through its proactive approach against fraud and chargebacks, is aiming to eliminate one of the retail industry’s biggest foes—the billion-dollar chargeback issue.
NetCents Is Safer, Speedier, and Cheaper for Merchants
The growth of e-commerce over the last decade has been astounding, hitting $349 billion in online sales in 2016—and expected to rise to $523 billion annually within the next five years.
However, for many merchants, there is a major obstacle in the way towards truly flourishing—chargeback fraud.
Chargeback fraud is often referred to as the “hidden tax” of online commerce, in that it artificially inflates prices and costs online merchants more than $40 billion annually—and the rate of the problem is growing 41% annually.
By utilizing much safer blockchain/multichain software, NetCents is not only giving back to merchants a much more secure method to transact, but also lowering their costs significantly.
On average, a low-risk merchant typically faces a merchant fee between 3.5% to 5.5%, whereas a higher-risk merchant gets dinged at a rate of 5.0% to 10.0%.
NetCents has aggressively countered that proposal, by drastically reducing the risk at both ends of the transaction as well as the cost—charging a merchant fee of 1.99%.
That’s a benefit to merchants between 1.5% to 7.0% in savings per transaction, which over an annual basis could be entirely game-changing for businesses large and small.
When it comes to cryptocurrency transactions for merchants, that gap gets even wider.
Present cryptocurrency payments are processed and charged a fee based on the size and complexity of the transaction. And when it comes to the most popular cryptocurrency in the world, Bitcoin (BTC), the transfer cost between the user and the merchant is extremely high.
For example, a product costing $100 that’s bought with BTC can result in a transaction fee to the user of 28%—an entirely unsuitable fee for small payments.
That same transaction through the use of NetCents will only cost the user 2.25%—that’s a savings of 25.75%, leading to a no-brainer decision by both parties.
Lastly, payout on transactions can take up to 7 business days through traditional platforms. NetCents has put quick settlement at the forefront of its pitch to merchants, resulting in settlements appearing days earlier than traditional methods.
Slow turnarounds can impact merchant cash flow, which NetCents has effectively addressed.
NetCents has already contracted access to over 14,000 merchants in the US, and has amassed over 60,000 users with its NetCents eWallet. With each merchant/user experiencing lower-cost, speedier, safer transactions, the growth of adoption of the NetCents platform is bound to continue to grow rapidly.
Feature Stock: For Comparison
NetCents Technologies
(OTC: NTTCF // CSE: NC)
Market Cap: $31.558M
NetCents provides electronic digital payment services in Canada. Its platform allows clients and merchants to manage electronic payments through various devices and currencies.
Blockchain/Fintech Comparable Companies: Much Larger Caps, But Worth Studying
These stocks represent some of the leading players in the blockchain/fintech sector, all of which have experienced major gains year-over-year. We believe they show a clear picture of the rapid growth in the sector moving forward.
Baozun Inc.
(NASDAQ: BZUN)
Market Cap: $2.54 Billion
Baozun provides e-commerce solutions for Chinese-based brand partners, offering end-to-end e-commerce solutions, including its Maikefeng mobile app.
Recent Headline: Baozun Surges After a Mixed Fourth Quarter
HIVE Blockchain Technologies Ltd.
(OTC: HVBTF // TSX.V: HIVE)
Market Cap: $304.022M
HIVE is a cryptocurrency mining firm, focused on bridging the blockchain sector to traditional capital markets, by mining multiple currencies such as Ethereum, Monero, and ZCash.
Recent Headline: HIVE Blockchain to Acquire Kolos Norway AS; Build Major Data Centre
Square, Inc.
(NYSE: SQ)
Market Cap: $19.501 Billion
Square provides payment and point-of-sale solutions, including its well-known Magstripe reader; Square Point of Sale software; Cash App; Caviar; and Square Capital.
Recent Headline: Square Acquires Entrees On-Trays, Expanding Its Caviar Footprint
Our Focus: NetCents Technology Gets Our Strongest Rating
With access to over 14,000 US-based merchants, over 60,000 users, a proprietary currency, and platform that’s easy-to-use, stable, secure, and friendly to merchants and users alike, NetCents Technology has all the tools for a breakout.
We believe that NetCents is very well positioned in the financial payments and blockchain sectors, each with massive potential, and very large CAGR to look forward in the years to come.
With a much more economic transaction fee for merchants, there’s a possibility that NetCents could make a major surge across many sectors.
But perhaps even more important to merchants and users alike is the strength of the NetCents platform’s proactive strategy against fraud and the multi-billion-dollar chargeback issue.
Given the slow turnaround time for payouts through traditional payment processing methods, the concept of shaving several days off payout times could alone bring NetCents thousands of new merchants and users.
However, as advantageous as the platform is, we believe NetCents Coins (NCCO) holds possibly the biggest upside for NetCents value. By being able to settle with merchants through either fiat cash of the NCCO, there is huge potential for the NCCO to become a mainstream cryptocurrency.
When we put it all together, here’s what stands out for us for NTTCF/NC.CN:
- Lower-cost transactions for merchants, slashing transaction costs up to 80%
- Rapid turnaround times on payouts to merchants
- Secure transactions through using blockchain applications, virtually eliminating the billion-dollar chargeback issue
- Platform already adopted by over 14,000 merchants and more than 60,000 eWallet users
- More than 28% adoption among eCommerce merchants of WooCommerce platform
NetCents has strategically addressed seemingly each major and minor issue for payment processing between merchants and users alike, leading to what we believe will be significantly increased sales using the NetCents platform in 2018.
The payments-processing sector is rapidly expanding, and its incorporation of more secure blockchain technology to facilitate transactions is inevitable.
We like how NetCents has made this incorporation of blockchain and payments the basis of the company’s strategy.
Our recommendation is to seek a position now, before adopt of the platform truly takes off, and NetCents starts to see their revenues climb like those of the comparables we’ve listed. We especially like the potential for the NCCO cryptocurrency as it gains mainstream acceptance.
Be sure to stay up to date with NetCent’s news and advances, as they’ll certainly have a steady news flow stemming as they contract more merchants, and enhance their platform’s technology. Join their email list at https://net-cents.com/.
We believe NetCents is destined for huge growth in 2018, with an established client base of merchants, a growing number of users, and a safe, secure, speedy, and economic platform that outshines the traditional competition.
Blockchain News Group
Editorial Staff
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