went through interview of oakmark pf manager (interview by saurabh )…its an amazing interview
Bill Nygren: “Value Investing Principles and Approach” | Talks at Google
one of the interesting topics was touched that visa/mastercard… both have very strong moats…
do we have in india any stock (which has a payment gateway ) like them ??
Many are there, but most are still at nascent stage &/or private.
CCAvenues
Juspay
Playmate
Pay U India
Airpay
One97 (PayTm)
Moreover, I believe this space will undergo consolidation before it can make sense from investment perspective. Government has launched many initiatives like UPI, BHIM, AADHAR Pay etc. which can create trouble for such companies.
Please do not confuse card payment networks with payment processors.
Card networks is what you see on your bottom right of your debit/credit card. Only networks present in India are MasterCard (alongwith it’s Maestro offering), Visa, American Express, Dinners and Rupay. Except Rupay none are Indian. Visa, MasterCard and Amex are listed in the US. Warren Buffett holds stakes in all three by the way. Though Amex is what he is famous for. These three networks form perhaps 99% of txns worldwide excluding China where they have a network called Union Pay. Rupay is run by NPCI in India. Its not a listed company. Therefore none of us can invest in India in any of these companies. They indeed have a great moat.
All other companies mentioned in prior posts are only payment aggregators or payment processors or pre paid issuers. There is no barrier to entry neither it has any moat. Its purely a volume and margin business in B2B side. I suggest there is no business in India which you can invest via capital markets in this space. I mean worthwhile business.
Regards
Deepak
p.s. I have outlined these topics in some detail in the RBL thread if you would like to read on this topic.
RuPay’s MD/CEO Mr. Hota visited our campus for a talk. Their journey from a Visa/MasterCard wanna-be to overthrowing both of them by capturing the largest market share (43%) in the Indian Payments space is amazing. If NPCI ever goes public, I’ll be watching it closely for an opportunity to get in.
Not sure if I am allowed to post this. But below is the image we took with Mr. Hota post his wonderful speech. All the students surrounding him are part of the Finance Club of XIME, Bangalore. The one to his left is his Assistant. I am the one in the dark orange shirt.
Also RUPAY is a pure India payment network. Ít has a tie-up with DINERS for international transactions. For any international card transaction there is no alternative to Visa/MasterCard/Amex.