From airlines to retail, dozens of sectors are reeling right now from the coronavirus…
But tech is still booming. In fact, companies including Amazon (AMZN) are hitting 52-week highs.
I expect the dominance of the tech sector to continue…
But thanks to Covid-19, two specific technologies are being radically accelerated…
And if you’re looking to earn the biggest profits, you should invest in these technologies right now.
Technology #1: “Contactless” Payments
I don’t leave the house much lately. But I still make trips to pick up groceries.
The thing is, when it comes time to pay, I’ve been shying away from using cash or credit cards…
After all, cash is full of germs, and credit card terminals don’t get disinfected enough.
Instead, I use Apple Pay on my smartphone. Why? Because it’s contactless — in other words, my fingers never make contact with dirty cash or keypads.
And as it turns out, I’m not the only one who’s changed his behavior…
Contactless Payments Are Soaring
In response to the pandemic, use of contactless payments is exploding right now.
- In Italy, shortly after the virus hit, remote transactions for mobile payments company Satispay grew from 10% to almost 50% of its total payment volume.
- In Hong Kong, Octopus, the region’s dominant contactless payment provider, reported a 20% increase in mobile wallet transaction volume in the first two months of the year.
- And according to a survey from the Electronic Transactions Association, 27% of small businesses in the U.S. have seen an increase in usage of contactless services.
Furthermore, businesses and governments are now encouraging this behavior…
For instance, Walmart enabled QR-codes so customers can pay with their smartphone.
And instead of forcing users to enter a PIN or insert a chip card, forty-four countries (and growing) have decided to let more payments in their nation be made with a tap.
This Trend Is Gathering Steam
As you can see here, in the years before Covid-19, contactless payments were already gaining steam…
But in a post-Covid world, adoption and growth rates are set to soar:
Now that users have experienced the convenience and safety that contactless payments offer…
They’ll be ready to leave the “old way” behind.
Technology #2: Telemedicine
With the widespread stay-at-home orders, there’s no more going to the doctor for a routine visit. Instead, we’re forced to use telemedicine.
- A recent Merrit Hawkins survey reveals 48% of U.S. physicians are treating patients via telemedicine. That’s a huge leap from the 18% reported in 2018.
- The Cleveland Clinic typically logs 3,400 “virtual visits” per month. But in March, it logged more than 60,000 of them.
Telemedicine has been around for decades. But until now, adoption has been low.
Patients have been hesitant to try it. And providers lacked incentives to encourage it — after all, by law, they could only charge about 50% of the price of an in-person visit.
But thanks to the coronavirus, that’s all changing...
A $2.6 Billion Market Set to Double
First of all, patients don’t have much of a choice right now. Unless it’s an emergency, no one wants to go to a facility treating Covid-19 patients.
Furthermore, thanks to regulatory changes in response to the coronavirus, doctors can now:
- Get paid 100% of their in-person rate.
- Treat all 22 million Americans on Medicare via telemedicine, versus the prior restriction of only being able to treat patients in remote areas.
- Practice telemedicine across state lines.
So in a post-Covid world, not only will more patients be accustomed to telemedicine, but more providers will be incentivized to offer it.
As Dr. Manish Naik, chief medical information technology officer at the Austin Regional Clinic in Texas recently told Barron’s, “Doctors and patients are going to find that when this is all over and the dust settles there are a lot of people who are going to want the telemedicine option to stay.”
And that’s why I believe the $2.6 billion telehealth market in the U.S. will at least double in short order.
Bottom line: for the biggest profits, identify the companies on the cutting edge of these two trends!
Ahead of the tape,