Big News for Square

I have a square. It was convenient in college if I sold a book to someone else and they did not have cash. Easily accepts every card and then deposits the next day into your bank account of choice. It has done wonders for small merchants that go to trade shows or sell at antique malls. They do not need a full service terminal and can use their smartphone. A much smaller investment. It takes a percentage like any merchant service but it is not exorbitant. It is probably much less than some services. This accessibility and ease of use have made Square grow large and fast. They are competing with the large banks and doing a good job. They just announced that their merchants did $100 million in sales in one day you can read more about that here. This makes it a force to be reckoned with in the field. If only they went public I would invest. They shake up the banks and regular merchants. The only downside to Square and one that I tell the clients at the bank is that Square is not as secure as a regular merchant. With the new EMV chips in cards it will make Square even more vulnerable. They might be able to still compete and maybe even one day able to use the EMV chip.

Square has challenges ahead but they will reinvent and overcome. They will still be very popular for small merchants that do not have the volume for a larger merchant.

Lending Club: Changing the Loan Game

I have been interested in Lending Club since 2010. I heard about it and at first dismissed it as just a blimp because the banks will come back and start lending again. It has stayed and has grown more than 100% in outstanding loans in the past year. That is huge for any lender to double the amount of loans on the books. It has done this with the appeal to investors looking for healthy returns and a good supply of worthy debtors. It requires both to succeed and it has them in droves. It makes it easy to get a loan and pay a reasonable rate. They will change the way people look to take out loans. I also see this as a way for millennial to invest more and expect healthier returns. Younger investors are hesitant to invest in the stock market but helping out a neighbor while earning a good return appeals immensely to my generation.

This is why I am going to say that The Lending Club is something that is worthy of investment. It has lots of room to grow and it will change the market for loans. As more hear about it more people will want to take advantage of these loans and the terms. They can feel better about the loans because most of the interest paid goes to an individual investor instead of a bank. People will be less likely to default knowing the disappointment that will come from default. There will always be defaulters but I  think fewer will default using this model and others might start using it too.

I am going to invest in Lending Club too. If the price is good tomorrow I will be there.

Cyber Monday Sales

Online shopping is continuing to be the new medium for people  to purchase Christmas gifts. It is a good deal. Shoppers can purchase items in the comfort of their home, sometimes cheaper than ion store and have it shipped to the doorstep. There are no crowds and the purchasing process is easy and secure. No wonder cyber Monday was even bigger. Black Friday sales in-store were not as good as last year but online sales were certainly made up for anything else. I see plenty of people still shopping and buying items this year. Get in the market before it goes up even more. Retail sales are going to be strong and the consumer is back.