by The Wall Street Daily Research Team

2MOBILE REVOLUTION: HOW TO PROFIT FROM THE BIGGEST TECH TREND OF OUR LIFETIME

THE EXPLODING USE OF MOBILE DEVICES PROMISES TO BE THE FASTEST-GROWING AND BIGGEST TECHNOLOGICAL TREND EVER.Bigger than the personal computer revolution of the 1990s. Bigger than the internet revolution of the early 2000s. Bigger than the invention of the automobile, too.

THEY’RE BOLD CLAIMS. But certainly not idle ones. The trend is already well underway – and all the signs point to it enjoying MASSIVE growth over the coming years. For example…

15 BILLION DEVICES: By the end of the year more than 15 billion mobile devices will be in use worldwide — two devices for every man, woman and child on Earth.

DATA OVERLOAD: As a result of all these devices, Cisco (Nasdaq: CSCO) expects mobile data traffic to blast 26 times higher than today.

3MOBILE REVOLUTION: HOW TO PROFIT FROM THE BIGGEST TECH TREND OF OUR LIFETIME

BIGGER THAN THE PC BOOM: Annual smartphone shipments are now outpacing annual PC shipments.

And by 2020, Morgan Stanley (MS) says the number of mobile devices (smartphones, tablets, etc.) will top 10 billion units. By comparison, the personal computer boom of the 1990s only sold hundreds of millions of units.

BIGGER THAN THE INTERNET BOOM:The number of people using their mobile devices as the only way to access the internet is expected to hit 788 million by the end of 2015. That’s a 56-fold surge from 14 million in 2010. Morgan Stanley’s Mary Meeker puts it best: “Mobile is ramping up faster than desktop internet did and will be bigger than most people think.”

A TRILLION-DOLLAR INDUSTRY:Total annual sales for all mobile-related devices and services already top $1 trillion. To put that incredible feat in perspective, only three other industries in history have ever achieved it (if you’re wondering, they’re automobiles, food and defense.) Moreover, we’re still only in the infancy of this mega trend.

A MASSIVE “FOREVER GROWTH TREND”:As the phrase suggests, “forever growth trends” are those that promise to continue, no matter what happens in the world or economy. And there are few better examples than the mobile industry. For starters, a whopping 97% of Americans carry their phones at all times. In addition, a recent Kelton Research survey reveals that 31% of people would rather give up sex for a year instead of their phones. Talk about being indispensable!

And as more and more people hop onboard the smartphone train, there’s one consumer staple that’s about to bite the dust: the credit card.

The number of people using their mobile devices as the only way to access the internet is expected to hit 788 million by the end of 2015.

4MOBILE REVOLUTION: HOW TO PROFIT FROM THE BIGGEST TECH TREND OF OUR LIFETIME

Your Credit Card is About to Die... HERE’S A “SMARTER” WAY TO PAYEver heard of Near-Field Communication?

Don’t worry if you haven’t. Just know this: Growth within this area is poised to spread like wildfire across the globe over the coming years.

Better known as NFC technology, it basically allows two communications systems to interact without physically touching.

For example, Visa (NYSE: V) and MasterCard (NYSE: MA) added NFC functionality to their credit cards years ago, which means that instead of swiping your card through a card reader when you make a store purchase, you simply wave it near the machine to make the payment.

NFC technology is already making serious progress and we expect it to become one of the hottest tech trends over the coming years.

Better known as NFC technology, it basically allows two communications systems to interact without physically touching.

5MOBILE REVOLUTION: HOW TO PROFIT FROM THE BIGGEST TECH TREND OF OUR LIFETIME

Why? Because the contactless NFC payment system is now going mobile, using semiconductor chips embedded in mobile devices like smartphones. These chips store a consumer’s credit card information, store loyalty/bonus card details and coupons, so you can make payments using only your mobile phone.

This means two things:

1. Consumers can use their smartphones as secure, virtual credit cards, eliminating the need to carry a wallet altogether.

2. It opens the profit floodgates for investors.

You see, consumers now expect to accomplish much more with their devices, aside from calling, texting, emailing, and surfing the web. And with the explosion of the mobile industry, we can.

The question is: Will enough people ditch their traditional credit cards and make payments through NFC technology in their smartphones? You bet…

The question is: Will enough people ditch their traditional credit cards and make payments through NFC technology in their smartphones? You bet…

6MOBILE REVOLUTION: HOW TO PROFIT FROM THE BIGGEST TECH TREND OF OUR LIFETIME

The Next-Generation PAYMENT PROCESSThere’s no doubt that the payment landscape has evolved rapidly. In 1998, for example, 70% of consumers surveyed said they wouldn’t buy items online. Today, 70% say they would.

Global e-commerce is “booming”, according to research firm, ystats.com, with sales totaling around $1.3 billion. Of that, the United States accounts for $1 out of every $20 spent. And we’re seeing continued growth of mobile payments through NFC technology. Just look at the statistics…

• MobilepaymentsintheUnitedStatesalonecouldtotal$56.7billionin2015–upfrom$5.2billionin2009,accordingto MarketResearch.com.Globally,Statistaprojectsthatmobilepaymentswillhitamassive$721billionby2017.

• Inasurveyofconsumersagedbetween18and34,over60%said they’d feel at ease using their smartphones for point-of-sale transactions.

If you don’t believe that enough consumers will switch from plastic payments to mobile payments, consider the history of the credit card itself.

In 1950, one of the first credit cards, Diners Club, was issued to only 200 people and accepted at just 14 restaurants in New York. But despite initial resistance from merchants and

In a survey of consumers aged between 18 and 34, over 60% said they’d feel at ease using their smartphones for point-of-sale transactions.

7MOBILE REVOLUTION: HOW TO PROFIT FROM THE BIGGEST TECH TREND OF OUR LIFETIME

The company operates in the niche market for optical components – lasers, detectors, transmitters, receivers and modulators – which enable bandwidth in high-speed networks.

consumers, people quickly realized its potential. By the end of the first year, 20,000 people were using the card.

Now consider that MasterCard’s NFC-based PayPass system alone is already used in 400,000 U.S. retail locations and you can see that NFC is off to a much better start. Plus, once more consumers see how the technology streamlines the payment process, discounts and store loyalty bonuses, you can bet that mass market adoption won’t be far behind.

And MarketResearch.com adds that with only about 1.7% of people currently using mobile payment processing in the United States, the industry is “in the nascent stage [and] represents a huge opportunity for early movers” in the space. So who’s in on the trend?

8MOBILE REVOLUTION: HOW TO PROFIT FROM THE BIGGEST TECH TREND OF OUR LIFETIME

Forget Your Wallet… GOOGLE’S GOT YOU COVEREDWith Google (Nasdaq: GOOG) commanding the biggest share of the smartphone market, it’s in the best position to drive this trend forward. Central to its plan were the aquisitions of privately held mobile payment platform provider, Jambool, and Canadian firm Zetawire.

The latter owns a software patent that basically transforms a smartphone into a virtual wallet and supports real-time payments.

It all works through Google’s “Wallet” application, which is essentially a complete wallet replacement. After you download the app, you create a PIN code, load your credit card details onto the NFC chip and Wallet application and, after verification, you’re good to go.

Google Wallet is now in every Android phone on the market – and 400,000 Android phones are activated every day.

Google has already teamed up with MasterCard and Visa to allow its customers to make payments through NFC-enabled smartphones.

How big could this be for Google’s NFC adoption ambitions? Consider that MasterCard alone boasts more than 171 million credit card holders and 123 million debit card holders.

Google Wallet will also be integrated into G-mail, so users can e-mail money to anyone for free through the Wallet app on their phones.

And other big names are blitzing the mobile payment space, too…

9MOBILE REVOLUTION: HOW TO PROFIT FROM THE BIGGEST TECH TREND OF OUR LIFETIME

These Massive Banking and Wireless Firms Have JUMPED ON THE NFC BANDWAGONIn November 2010, AT&T (NYSE: T), T-Mobile and Verizon Wireless (NYSE: VZ) created a joint venture called ISIS, which focuses specifically on using NFC technology in smartphones to make purchases. Together, the three companies announced partnerships with Visa, MasterCard and American Express (NYSE: AXP).

With Discover (NYSE: DFS) also in the mix, ISIS is now “the only mobile payment product that accepts all four major payment networks,” according to E-Commerce News. This is huge, considering support from credit card companies is crucial to NFC’s survival. As the Yankee Group market research firm says, “ISIS had to gain the support of all the major credit cards to gain legitimacy with merchants.”

The question is: Who’s in the best position to PROFIT from all this?

The Big Winner From the

MOBILE PAYMENT REVOLUTIONAs Bloomberg states: “The adoption of NFC payment systems will hinge on the availability of phones with the technology.”

10MOBILE REVOLUTION: HOW TO PROFIT FROM THE BIGGEST TECH TREND OF OUR LIFETIME

At the moment, however, only a few smartphones currently have the revolutionary NFC chip within them that facilitates mobile payments.

But that’s changing fast. And by investing in the source of NFC technology, you can capitalize on the uptick in mobile payments and the strong growth of smartphone sales at the same time.

Enter NXP Semiconductors (Nasdaq: NXPI). It’s a huge player in the mobile payment market, as it manufactures the NFC chips in smartphones.

Not only that, the chips are ultra secure — a crucial element, given that the NFC chip stores your credit card information locally. This has led to fears that personal information would be vulnerable to hackers or thieves.

But fear not…

How Safe is YOUR “WALLET?”As eWeek explains, the chip is “completely isolated from the phone’s operating system and hardware.” That means only Google-approved software (like Google Wallet) can access it. In addition, using Triple-DES (Data Encryption Standard), communication between the chip and the bank is encrypted three times over. It’s the same technology that ATMs have used for years. And based on new security standards, merchants are also now required to use Triple-DES in debit pin pads.

As for the phone theft issue, what’s to stop a subway groper from snatching your smartphone and using it to buy goods? Answer: Three PIN codes…

1. WhenyousignintoGoogleWallet,youmustfirstenteryourfour-digitPIN.NoPIN=nopurchase.Thatalonemakesitsaferthancreditcards,whichyoucanusetobuyanything with a simple swish of a pen on paper.

2. Youcanaddanextralayerofsecuritybyusingacodethatunlocksthephoneitself.

3. Andfortheuber-security-consciousconsumer,PCWorldexplainsthatyoucanuseathirdPIN“atthetimeoftheactualtransaction,soevenifyourAndroidsmartphoneislostorstolen,itwillbevirtuallyimpossibleforathieftomakeanyunauthorizedtransactions.”

Add it up — three levels of encryption and three PIN codes — and Google Wallet

11MOBILE REVOLUTION: HOW TO PROFIT FROM THE BIGGEST TECH TREND OF OUR LIFETIME

is a heck of a lot safer than carrying around plastic, or even shopping online. As Google notes, “Security was something we wanted to make sure was absolutely airtight.”

In fact, NXP’s technology and security is so airtight that other firms are jumping on board. Microsoft (Nasdaq: MSFT) and Sony (NYSE: SNE) have followed Google’s lead and partnered up with NXP to get NFC chips into their devices... Apple (AAPL) did too and is seeing resounding success with Apple Pay.

Here’s the bottom line: It’s time to start saying your goodbyes to old-school credit cards. By 2016 more than half of all smartphones in the United States should be equipped with NFC technology. And by pushing your chips to the source of NFC technology, you benefit directly from this new hypergrowth market.

DON’T BE LEFT BEHIND. The mobile revolution promises to be the biggest technological trend of our lifetimes. And the profit opportunities for companies like NXP are significant.

Good investing,

The Wall Street Daily Research Team

Nothing published by Wall Street Daily should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Wall Street Daily should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

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Nothing published by Wall Street Daily should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Wall Street Daily should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

© 2015 Wall Street Daily, LLC. All rights reserved.

105 West Monument Street, Baltimore, MD 21201 // T. 877.242.1730 or 410.230.1266 F. 410.223.2650

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