Purchasing stocks based on electronic payment systems is an excellent way to get a good return on your investment. However, there are some things you should consider before you buy.
PayPal is one of the top electronic payment platforms. The company enables consumers to transfer funds online or via its mobile app, and offers a wide array of options for merchants. However, the stock has had a troubled past and faces macroeconomic headwinds.
For example, the Federal Reserve has raised interest rates five times since March. That’s enough to deter consumers from spending. In addition, soaring inflation has made food prices skyrocket.
Nonetheless, PayPal’s long-term financial health remains intact and its recent results largely confirm its growth potential. Even with an expected drop in revenues for the quarter, the company is on track to record a record year of earnings.
Affirm Holdings (NASDAQ:AFFI) is an innovative fintech company that offers a new spin on consumer financing. Its services allow consumers to finance purchases with merchants through a point-of-sale (POS) payment solution. The company has a merchant network of over 11,500 partners.
Affirm operates in a competitive field with several large, well-established competitors. However, it has grown revenues at a rapid pace. Currently, Affirm serves more than 7.1 million customers. Despite this growth, the company remains far from profitable.
In its fiscal fourth quarter, Affirm reported a wider-than-expected net loss of $0.65 per share. During the same period a year earlier, it reported a net loss of 46 cents per share.
Bottomline Technologies Inc. (EPAY), Coupa Software Inc. (COUP), FleetCor Technologies Inc. (FLT), Intuit Inc. (INT)
The best electronic payment system stocks to buy now include a few long-established names, along with some lesser known but no less impressive names. Moreover, while the aforementioned companies have been around for a while, they still have a lot of room for growth. These stocks could prove to be the long-term winners that you’ve been waiting for.
A good example of this is Fidelity National Information Services Inc. (NYSE:FNIC), which offers a range of financial products and services, from securities processing and internet banking to credit card and debit card processing. However, FNIC is more than just a financial institution. It has a subsidiary called Fleetcor, which offers domestic and international payments solutions.
Paysign is one of the leading providers of prepaid card programs. They are also a leader in digital banking services, delivering end-to-end solutions to clients across a wide variety of industries.
The company has a few different segments that they’re working to diversify. One of the more important is plasma, which represents an increasingly lucrative market for the company. This segment is growing by about 15% a year.
Another major opportunity is the pharmaceutical industry. Many drugmakers send prepaid cards to patients to help them pay for medications. Using the company’s technology, they can customize a buying option that’s right for the patient.
It’s a logical move, and this strategy should lead to a number of benefits for the company. Some of the rewards include reduced operational costs, increased employee loyalty, and improved distribution of funds.
Marqeta (NASDAQ: MQET) is an electronic payment provider that provides services to banks, fintech firms, and other companies. It helps them keep up with the fast-growing digital payment market. The company offers flexible payment solutions.
Marqeta offers its customers the opportunity to launch their own card programs on its platform. It is certified to operate in 39 countries. A large percentage of its revenue comes from Block Inc., its largest customer. This month, Marqeta announced a partnership with Western Union. In addition, it will support Stash’s Stock-Back Debit Mastercard.
Marqeta’s goal is to expand its visibility in the global market. To do so, the company needs to diversify its revenue sources. Besides, it will need to continue investing in its platform.
Stripe is a leading payments processing company. It offers services for online credit card transactions, and debit cards. The company also provides a large variety of third party integrations.
Stripe works with a number of different payment networks, including Visa and Mastercard. It has a PCI Level 1 security certification. AES 256 encryption protects transactions, and the company employs a number of fraud prevention tools.
As the largest venture-backed private company in the US, it is expected that Stripe will eventually go public. But the company hasn’t made any public announcements about the IPO. However, investors are still interested in buying shares of this innovative fintech.
Buying shares of Stripe before the IPO is not advisable. Several factors can make this type of investment risky. Among them is the fact that a lot of pre-IPO shares are subject to lock-up periods.