NEW YORK (MarketWatch)—You eventually will ditch your wallet and start using Apple Pay or an equivalent digital wallet, according to VeriFone Systems Inc., the company whose technology powers mobile payment technologies.In December, point-of-sale device manufacturer VeriFone PAY, -0.27% said Apple Pay AAPL, +0.27% would usher in a new era of mobile payments that would make cash and plastic as annoying to carry as coins are today. Proponents of the technology say digital wallets will one day become so ubiquitous that cash and plastic will be pushed into virtual irrelevancy.In a note to clients on Wednesday, Susquehanna Financial Group analyst Meghna Ladha said this provides a “multiyear opportunity” for VeriFone.The stock is Susquehanna’s “top pick for the year” in 2015. Ladha reiterated a positive rating on VeriFone and a 12-month price target of $38 on the stock, which implies a 14% improvement over today’s price. The average rating among more than 17 analysts polled by FactSet is overweight.Shares of VeriFone traded up 1.3% at around $33.33 in recent trade. They are up about 17% over the last 12 months but have fallen 10% since November. Apple’s stock recently traded up 1.4% at around $123.76.Ladha said there is a “sharp disconnect” between VeriFone’s fundamentals and valuation, which could drive upside potential for investors, especially as Apple Pay sparks mainstream adoption of mobile payment technologies and other catalysts, such as new regulations, drive merchants to upgrade point-of-sale terminals. The company’s current price-earnings ratio is 16.68, compared with 23.97 for rival NCR Corp. NCR, +1.38%Last quarter, VeriFone said Apple Pay played a part in a 12% revenue increase in its business segment covering small- and medium-size U.S. businesses. But the adoption of Apple Pay has so far been minimal, partially because it’s still not accepted at a vast majority of retail locations and has not expanded internationally.The potential benefit for VeriFone is that nearly all of its EMV point-of-sale terminals in the U.S. today are capable of hosting near field communications [NFC], the technology required to operate Apple Pay, yet just 10% to 15% of all sales terminals currently outstanding in the U.S. are NFC capable.“According to management, merchants will eventually have to [adapt] to Apple Pay along with many other types of mobile wallets that are coming into the market, ” Ladha said, which would, feasibly, increase merchant demand for VeriFone terminals with NFC capabilities.