The Brinks Company Backs Up the Truck to Payment Processing

It might be time to back up the Brink's truck on e-payment security, as The Brinks Company (NYSE: BCO  ) launches a new payment processing service.

Following the massive hacking attack and theft at Target (NYSE: TGT  ) that compromised the data of anywhere from 40 million to 100 million customers, there's an air of vulnerability again in credit card processing. That luxury retailer Neiman Marcus may have put another million or so customers at risk creates an even greater sense of risk, but Brinks is known for nothing if not security, and its armored cars have passed on to become an icon of pop culture.

Now it wants to translate that aura into the field of payment processing, and recently announced that in partnership with leading payment processing service provider 2Checkout, it was launching Brink's Checkout, an e-commerce payments service that allows online merchants to accept payments from credit cards, debit cards, and even PayPal.

At $30 billion in volume and hundreds of players, payment processing is a crowded market that Forrester Research estimates will triple in volume to $90 billion by 2017. While eBay's (NASDAQ: EBAY  ) PayPal is the undisputed leader and is the auctioneer's fastest growing business with 143 million active users as of the end of 2013 -- a 5.2 million or 16% jump from the year ago period -- it's clear the lucrative niche is attracting more rivals like Square and Stripe that are making incursions on PayPal's turf.

Billionaire activist investor Carl Icahn thinks eBay ought to spinoff the payment processor as a stand-alone company. Revenues soared 19% to $1.8 billion last quarter, but rather than separate the business, eBay sees payments as integral to its future success, and rejected the proposal out of hand. Just last month it completed an $800 million acquisition of another payments company, Braintree.

Under Brink's agreement with 2Checkout, they will leverage the security brand's well-known reputation with the established payment processor's checkout and cart technology, along with all the attendant gateway services, risk management, compliance, settlement, and reporting technology that goes with it. It will be offered in 196 countries, 26 currencies, and 15 languages.

Despite the cutthroat nature of the industry, and even in the face of PayPal's leadership, Brink's credibility in security could allow it to actually make more than just a go of it here, and become an industry leader itself.

There's a commodity aspect to payments processing that helps explain why many default to PayPal with its backing from eBay. Yet, some analysts contend that many businesses are reluctant to turn over their information to the service precisely because of PayPal's relationship with the site. The Brink's Company can drive a wedge further in by offering merchants a large, well-known name already established in the security field -- meaning it could catapult itself over the many other rivals already in place.

We'll always have hackers probing systems looking for unsecured pathways, so we'll continue to see the Targets and Neiman Marcuses reporting break-ins and thefts. Yet, for those like Brink's that already come with a reputation of trust, investors might want to back up the truck for that opportunity to profit.

Another way to rob Wall Street
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multi-billion dollar industry. Our analysts have done it before with the likes of Amazon and Netflix. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2809304, ~/Articles/ArticleHandler.aspx, 8/28/2015 6:13:48 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Duprey

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.

Having made the streets safe for Truth, Justice and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. So follow me on Facebook and Twitter for the most important industry news in retail and consumer products and other great stories.


Today's Market

updated 8 hours ago Sponsored by:
DOW 16,654.77 369.26 2.27%
S&P 500 1,987.66 47.15 2.43%
NASD 4,812.71 115.17 2.45%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/27/2015 4:03 PM
BCO $28.58 Up +0.50 +1.78%
Brink's CAPS Rating: **
EBAY $27.10 Up +0.93 +3.55%
eBay CAPS Rating: ****
TGT $77.85 Up +1.01 +1.31%
Target CAPS Rating: ****