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4 Stocks Set to Gain From Emerging Digital Payment Methods

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The COVID-19 pandemic has triggered a shift toward contactless payments across global businesses and individuals. These payments are cost-effective and can be made seamlessly from the comfort of home. With cash and checks taking a backseat, several flexible payment options encompassing cryptocurrency, biometrics, and QR code have been coming to the forefront.

Though still not widely accepted, cryptocurrencies are now being utilized as a mode of making payments.

A recent Mastercard Inc. MA finding highlights customers’ openness for cryptocurrencies as a payment method. The Middle East and Africa region is more inclined to use cryptocurrencies. Also, 40% of people across North America, Latin America and the Caribbean, the Middle East and Africa, and Asia Pacific plan to utilize cryptocurrency in the next year.

Biometric mode of payments is also in vogue. Per the Mastercard research, 53% of surveyed consumers have admitted that biometric checkout is, in fact, secure. While making purchases, 60% of them preferred using biometrics given the security it provides.

QR-based payments have also gained popularity amid developing markets like APAC, Latin America and the Caribbean, among others. The use of handheld devices for QR based payments makes it a go-to option when paying merchants in person.

Per a recent study conducted on 5,500 leading Mastercard merchants, over a fifth of those merchants, have either embraced an e-commerce channel or have given consent to contactless transactions on a year-over-year basis in first-quarter 2021.

With consumers’ inclination toward enhanced payment technologies, the trend of contactless payments is likely to stay even beyond the pandemic.

As a result, companies that provide safe and advanced checkout experiences are likely to gain on growing utilization of digital payments.

4 Top Stocks to Watch

These four Zacks #3 (Hold) Ranked stocks mentioned below have been rolling out a diverse range of contactless payment solutions. These remain well-poised to gain amid the growing popularity of digital payments. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Mastercard has been collaborating with cryptocurrency platforms to tap growing number of consumers entering the crypto space. Recently, it forged an alliance with Criptan to roll out CriptanCard, which enables users to utilize cryptocurrencies for addressing their daily needs. The Mastercard Biometric Card integrates chip technology with fingerprints for safe and secured verification of cardholders’ identity while making in-store purchases.

For 2021, the Zacks Consensus Estimate for the company’s revenues and earnings are pegged at 19.8% and 21% growth, respectively.

In a year, shares of Mastercard have gained 22.8% compared with the industry’s growth of 12.6%.

Visa Inc. V consistently utilizes advanced technologies for rolling out newer payment solutions. The presence of a trusted payment facilitator like Visa, which has more than 25 digital currency wallets linked to its systems, further reinforces the belief of individuals in increased usage of crypto and digital currencies.

The company joined forces with BlockFi to roll out a credit card, which rewards bitcoins to clients. Further, the company has its biometric card and offers enhanced QR-based payments.

For 2021, the Zacks Consensus Estimate for the company’s revenues and earnings are pegged at 7.2% and 10.5% growth, respectively.

Shares of Visa have gained 18.7% in a year compared with the industry’s rally of 12.6%.

PayPal Holdings, Inc. PYPL enables customers to trade bitcoin, which emerged to be the most popular investment asset among cryptocurrencies amid the COVID-19 pandemic. The trading can be done through the company’s digital wallet. The company launched a feature named Checkout with Crypto in a bid to bolster its offerings in the growing cryptocurrency space. Being a secure gateway, the company provides for biometric and QR-based payments to its customers.

For 2021, the Zacks Consensus Estimate for the company’s revenues and earnings are pegged at 20.1% and 21.4% growth, respectively.

In a year, shares of PayPal have soared 75% compared with the industry’s growth of 40.4%.

Square, Inc. SQ has made substantial investments in purchasing bitcoin over the passage of time. A technology enabled strategy has enabled the company to develop products and services that are convenient and secured. This has expanded its payment solutions portfolio, which stands well-poised to gain amid the booming market for online payment solutions.

For 2021, the Zacks Consensus Estimate for the company’s revenues and earnings are pegged at 106.9% and 71.4% growth, respectively.

Shares of Square have soared 161.2% in a year compared with the industry’s rally of 40.4%.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>


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Mastercard Incorporated (MA) : Free Stock Analysis Report

Visa Inc. (V) : Free Stock Analysis Report

PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report

Square, Inc. (SQ) : Free Stock Analysis Report

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