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And some of the biggest names in financial services and credit -- -- a sad day alongside everyone else on the street.
But our next guest says not to worry because credit cards have legs.
We're joined now by Chris -- alert us to.
-- and Chris just yesterday I think it -- -- upgraded discover -- also like MasterCard and Visa about -- vote.
I -- thanks to Dennis I think discover had a British -- -- to the stocks sold off.
Pretty heart of the results in missed the earnings number but we saw beneath the recent surface signs that that growth is picking up they had to 6% long growth.
A little over 6% spending growth and with the they're gaining a lot of share in what appears to be up for pretty strong credit card market.
Yeah I've always considered discovered kind of a laggard just doesn't have the bit as big a brand name as as your MasterCard the pieces of the world.
It does that end up -- into a higher.
Multiple or higher stock price for the better known brands like Visa and MasterCard.
Yeah I think you'll continue to see Visa Mastercard trade with live with a much better valuation currently in in the high teens RP basis -- discovers only about eight times right now.
Very different businesses as you mentioned Visa Mastercard actually dominate.
That the payments industry discovers that a great niche in the US they are gaining a lot of shares -- mentioned.
A but he -- like to be would be semester permanent comes to global spending growth I thought the one thing that could undercut those guys is some kind of newfangled PayPal like -- system on the Internet.
But Visa Mastercard and actually moved -- kind of taken over the Internet currency as well have a -- Yet they it's very difficult it can be a -- a -- I think the problem that the new players face if you're -- -- like Google or PayPal.
Or some start up like -- of the cell phone companies.
You have to choose you can't make the consumers paid of the ability don't wanna -- they're they're gonna use the cards there in their -- existing -- you can't change.
That the privilege to to have their banks that are continue to -- to use Visa Mastercard we've seen all the opened all the -- turn open all draw accepting.
All cards even pieces wallet.
Which is launching this quarter is accepting all cards MasterCard American Express you put -- -- your Visa digital wallet they -- the -- of the companies understand that consumers have to be at -- pay.
But it wanna pay and given that it's very difficult for even companies like eBay and PayPal to break NBC -- PayPal giving up on the science -- itself.
And actually partner discover a couple months ago okay -- -- like -- discover MasterCard Visa.
What can go wrong here I know that during the meltdown have -- -- we saw their default rates really soar they've now been kind of declining quite a bit.
Yet credits and outstanding that the thing I think -- we worry about most for Visa Mastercard since that I actually take credit risk.
Is governor invention of these business -- so strong.
The competitive forces I've been really favor -- -- -- -- continue to gain share globally.
And -- I think really whereabouts -- government coming in changed the rules that they did two years ago with Dodd-Frank they've -- debit interchange the stocks got crushed but they're the they're bouncing back when I come back and fears waning even if -- change the rules also -- -- to thank you Chris radler.
The steeple Nicholas.
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