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UPDATE: Massive Trend Just Getting Underway in Financial Services: Finerman

Thursday, 9 Feb 2012 | 5:59 PM ET

Visa has been making a big push to upgrade its credit and debit cards to new technology that uses computer chips instead of magnetic strips.

On Thursday February 9th, the gang spoke with Stephanie Erickson head of authentication product integration at Visa about the massive trend underway.

Erickson tells us, "we have laid out a road map that's from now until 2015 for merchants to being to upgrade their point of sale terminals to being to accept this technology. Many merchants have already begun to lay the infrastructure."

Visa Goes High Tech
Stephanie Erickson, Visa Inc. head of authentication product integration, discusses Visa's migration to new chip technology, saying it provides more security for customers. Also, the Fast Money traders with the play on companies that are likely to benefit from the new technology.

Following the conversation, we thought you might be interested in seeing Finerman’s trading strategy again; something she first presented back on January 31st.

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"Of course you could play the trend long Mastercard and Visa ," Finerman says, but if you do you also take on the risks associated with consumer spending. "Instead, I think the hardware and the software that facilitates the migration is the way to play."

Finerman suggests looking at the following names:

Gemalto
Global Payments
Verifone
Diebold
NCR

“I think the migration is going to happen. Longer term I believe that this is where the industry is going,” she says. And with these plays you can get ahead of the curve.

And on February 8th Joe Terranova offered another name. "I'd look at NXP Semiconductors, Broadcom and/or Infineon for mobile payments."

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NEW SLIDESHOW: Top Fashion Stocks for 2012

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Trader disclosure: On Feb. 9, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long VRTS; Terranova is long TBT; Terranova is long IBM; Terranova is long EMC; Terranova is long AXP; Terranova is long TRLG; Terranova is long AAPL; Terranova is long SNDK; Terranova is long MCD; Terranova is long OXY; Terranova is long FXE; Terranova is long CNX; Terranova is long SBUX; Terranova is long SU; Terranova is long CSCO; Terranova is long UNG Puts; Najarian is long AAPL; Najarian is long BAC; Najarian Is long JPM; Najarian is long CSCO; Najarian is long EMC; Najarian is long VMW; Najarian is long AAPL; Najarian is long DMND; Najarian is long CIGX; Najarian is long CBOE; Najarian is long CME; Finerman’s fund is long BAC; Finerman’s fund is long JPM; Finerman’s fund is long IBM; Finerman’s fund is long HPQ; Finerman’s fund is short SPY; Finerman’s fund is short MDY; Finerman’s fund is short IWM

For Mike Khouw
No disclosures

For Gerard Cassidy
No disclosures

For Jerry Howard
No disclosures

For Tim Ramey
No disclosures

For Carter Worth
No disclosures

For Dan Dicker
Dan is long UPL


CNBC.com with wires.

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BRCM
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DBD
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HPTO
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GTO
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IFX
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MA
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NCR
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NXPI
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PAY
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V
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MCD
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