Are these 7 digital payment stocks primed for online shopping boom?

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Are these 7 digital payment stocks primed for online shopping boom?

 Are these 7 digital payment stocks primed for online shopping boom?
Image source: gopixa,Shutterstock

Highlights

  • Mastercard, in collaboration with three partners, has launched a US$100 million credit facility for small businesses in India to help shift to digital operations.
  • The PayPal App’s One Touch feature allows users to identify themselves with just one click before transactions.
  • Green Dot offers Visa and Mastercard branded prepaid debit cards, both reloadable and non-reloadable, and GoBank mobile services.

Fintech companies offer products and services like digital payment processing, digital banking, financial software, and customer questions. The sector saw robust growth during the pandemic as these companies eliminated the need for physically visiting a bank for most services.

Here we discuss seven fintech stocks to explore.    

Mastercard Incorporated (NYSE: MA)

Mastercard is the second-largest payment processing company based in New York. It is constantly increasing its footprints in the digital domain. For example, it recently partnered with Bakkt to offer crypto and loyalty solutions to consumers.

Also, this month it introduced cards for blind and partially sighted people. The cards are specially designed for blind people to identify a debit, credit, or pre-paid card.

Are these digital payment stocks primed for online shopping boom?

On Oct 26, the company, along with the HDFC Bank, US International Development Finance Corporation (DFC), and the US Agency for International Development (USAID), launched a US$100 million credit facility for small businesses in India to help shift to digital operations. 

Mastercard has a market capitalization of US$329 billion and a P/E ratio of 46.25. The dividend yield is 0.49%, and the annualized yield is US$1.76.

Its net revenue for the September quarter of 2021 was US$5.0 billion, and the net income was US$2.4 billion. The stock fell 6.7% YTD based on the closing price of US$333.03 on Oct 28.

Also Read: Mastercard (MA) revenue jumps 30%, STMicro (STM) profits nearly double

JP Morgan Chase & Co. (NYSE: JPM)

New York-based JP Morgan Chase is one of the largest financial companies in the US. It is a holding company, with four operating segments: consumer & community banking, commercial banking, asset & wealth management, and corporate & investment banking.

The company has partnered with various fintech firms to boost its digital presence. 

Founded in 2000, its current market capitalization is US$503 billion, and the P/E ratio is 10.78. The dividend yield is 2.33%, and the annualized dividend is US$4.0.

For the June quarter of 2021, its revenue was US$32.7 billion, and the net income was US$11.5 billion. The stock closed at US$170.36 on Oct 28, 2021. It gave a 34% return YTD.

Also Read: Sony Corp (SONY) posts net income of US$1.94 bn in Q2

Digital payment processing companies.

Source – Pixabay

Also Read: Top stocks with digital asset exposure to keep an eye on

Visa Inc. (NYSE: V)

Visa Inc. is the world’s largest payment processing company based in San Francisco, California, founded in 1958. It operates in over 200 countries.

It processes transactions in more than 160 currencies. Its products include Visa Digital Solutions, Visa Developers Program, Visa Ready, and mobile payment solutions.

Its current market capitalization is US$457 billion, and its P/E ratio is 37.19. The dividend yield is 0.55%, with an annualized dividend of US$1.50.

Its revenue for the June quarter of 2021 was US$6 billion, and the net income was US$2.6 billion. The stock fell 4% YTD and closed at US$209.84 on Oct 28, 2021.

Also Read: Travel stocks to watch as the US lifts restrictions  

PayPal Holdings, Inc. (NASDAQ: PYPL)

This payment processing company provides electronic payment solutions to merchants and consumers. Headquartered in San Jose, California, the company is focused on online transactions. Its Venmo platform allows people to transfer money person-to-person in the US.

The Venmo app charges less fee on debit cards compared to the PayPal app. However, the transfer limit is less on Venmo compared to PayPal.

PayPal’s One Touch feature allows users to identify themselves with just one click before transactions. The Venmo app is also being updated for cryptocurrency transactions.

PayPal’s market capitalization is US$278 billion, and its P/E ratio is 57.76. The company was founded in 1998. Its revenue for the June quarter of 2021 was US$6.24 billion, and the net income was US$1.2 billion. 

The stock grew 1.12% YTD and closed at US$236.83 on Oct 28, 2021.

Also Read: Merck (MRK), Sanofi (SNY) raise profit guidance after solid Q3 results

Global Payments Inc. (NYSE: GPN)

The company provides credit and debit card services and other related services. It is focused on small and medium-sized merchants.

Based in Atlanta, Georgia, the company operates in more than 30 countries. It is a member of the S&P 500. The company has partnered with Google to develop digital payment services. 

The company has a market capitalization of US$42 billion, and the P/E ratio is 49.26. The dividend yield is 0.64%, and the annualized yield is US$1.00.

Its net revenue for the June quarter of 2021 was US$2.1 billion, and its net income was US$263 million. The stock fell 33.69% YTD and closed at US$142.84 on Oct 28, 2021.

Also Read: Caterpillar (CAT), Illinois (ITW) report solid revenue growth in Q3  

 

Source – Pixabay

Image Description: Digital payment processing companies.

Also Read: Yum! (YUM) beats profit estimates, Hershey (HSY) raises guidance

Green Dot Corporation (NYSE: GDOT)

Green Dot is one of the oldest financial technology companies and provides financial services to consumers in the US. The Pasadena, California-based company offers Visa and Mastercard branded prepaid debit cards, both reloadable and non-reloadable, and GoBank mobile services. The company also provides reloadable cards for Wal-Mart.

The company offers a banking-as-a-service (BaaS) platform for clients to provide banking products. For example, Apple Pay Cash. Green Dot clients include Apple, Uber, and Stash. 

The company has a market capitalization of US$2.3 million and a P/E ratio of 108.15. Its net revenue for the June quarter was US$366.0 million, and its net income was US$25 million. 

The stock fell 22.47% YTD and closed at US$43.26 on Oct 28, 2021.

Also Read: US stocks rally after economic data

Bottomline

Fintech companies offer fast and seamless banking services, thanks to their innovative digital products. The ease of transactions, wallet services, and PoS solutions have quickly made them popular. Besides, e-commerce has made digital payment companies household brands. Also, fintech firms help businesses track activities and assist customers in various banking needs.

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