Amazon.com, Inc. (AMZN) Promises Longevity

Although signing for a patent doesn’t necessarily mean that a company will follow through, it is a great indicator. Apple Inc. (NASDAQ:AAPL)’s patent application keys out a system that, if implemented, would allow users to transfer exclusive access to digital content. Here is the key headline in Apple’s patent: “the transferor is prevented from accessing the digital content item after the transfer occurs.”

Focus on mobile payments – ingenious move

Mobile payments have paid off handsomely for some players. eBay Inc (NASDAQ:EBAY), which performed impressively in the past quarter, can attest to this. Although online payments from PayPal didn’t fully account for its past quarter’s earnings, headway made by PayPal and the contributions that mobile made greatly boosted its earnings.

In the past quarter, PayPal’s sales grew 18% to $1.5 billion. This was largely due to the 5-million added users during the quarter, 2.8 million of which were added through mobile. This alone shows how mobile, and the ability to make payments through mobile phones, is becoming more important.

In yet another patent application, Amazon.com, Inc. (NASDAQ:AMZN) has filed for an anonymous mobile payments system. Again, this move will be useful in building a moat to ward off competition in the future. Under the patent, Amazon will be able to facilitate mobile payments without disclosing personal or private information of users to other parties. This whole system will work through redeemable codes, protecting the privacy of users in a tech space where privacy has become increasingly important. I believe that this will create a unique selling point for the payment system.

Conclusion

All these forward-looking moves show that Amazon.com, Inc. (NASDAQ:AMZN) is concerned in establishing a footing in the future, not now. What does this mean for the stock? This means close to assured growth. Don’t expect any inexplicable shoots in share price, but expect sustained, healthy growth moving forward.

The article Amazon Promises Longevity originally appeared on Fool.com and is written by Lennox Yieke.

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