Apple Pay, considered by some a revolutionary cell phone payment method, could lift the fortunes of Monitise Plc (LON:MONI) (OTCMKTS:MONIF), not bring damaging increased competition, indicates Monitise’s management.
Apple Pay’s impact on the market
On a recent conference call, at the top of the list of questions for Monitise management was the impact and magnitude of Apple Inc. (NASDAQ:AAPL)’s announcement, noted a recent research note from BTIG Research.
“A high tide does lift all boats,” Mike Dreyer, president of Monitise, was quoted as saying in the report. “If you look at what Apple has said and the fact that you had that many partners getting together and saying ‘let’s make this market,’ it validates what Monitise has been doing for the past decade.”
It wasn’t just Dreyer making clear pronouncements. A host of Monitise executives issued a steady parade of pronouncements that Apple’s move into digital payment is re-invigorating the category.
Montise co-CEO Alistair Lukies welcomed the addition of Apple Inc. (NASDAQ:AAPL) into the market without making a direct connection to his company, the report noted. “When does this space really ignite? Whether the Apple announcement that everyone got excited about last week was the starting whistle to that game remains to be seen,” Lukies was quoted as saying, noting the impact on growing acceptance in the “mobile money” category. “I think the starting whistle began a little while ago, but I think it’s fair to say that the next 48 to 72 months in mobile money is going to be very, very fascinating to watch … it’s kind of weird but exciting to be standing here again trying to get people to realize just how big a deal this is. People are talking about trillions of dollars of opportunity.”
Monitise’s user growth plan
Monitise Plc (LON:MONI) (OTCMKTS:MONIF) has a plan to grow from 30 million users to 200 million by 2018. The big banks could be key to this growth, the company noted. While questions have been raised regarding big banks building their own mobile capabilities, Montise management said big banks working with the company isn’t gone, it’s just beginning.
Not far behind concern regarding Apple was Monitise’s increased marriage with IBM, announced August 27. While management refused to speculate regarding the direct impact of IBM, Lukies said that looking back from 2018 on their potential success he said IBM would likely be a “very substantial contributor.”
While the call was long on bullish sentiment, noticeably absent from the discussion was concerns regarding cyber-security.
As previously noted in ValueWallk, Monitise Plc (LON:MONI) (OTCMKTS:MONIF) is a stock that is evoking both strong support in the hedge fund community but also has its detractors. Longs such as Leon Cooperman of Omega Advisors are fighting a battle with shorts, including Tiger cub Philippe Laffont of Coatue Management, a hedge fund well known for its focus on technology stocks.