Global Payments (NYSE:GPN) is about to release earnings. Ponder this Bear Case Scenario:
US economic revival could stall causing credit/debit card usage to fall dramatically. Fee volume would drop just as dramatically.
Ever developing alternatives are emerging in the payment industry and creating competitive threats that Global payments will probably not be able to overcome.
Security issues lurk in the payment industry. Many factors have Global Payments tagged and targeted. If GPN does not apply properly the lessons from 2012 systems breach it will die a horrible and painful death. Be warned.
George Gutowski writes from a caveat emptor perspective.