This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.

Best Stocks To Buy Right Now? 3 Digital Payment Stocks To Watch

Could these top digital payment stocks be the best value buys right now?

As parts of the world look towards post-pandemic life, many of the pandemic-era trends could likely persist. Because of this, digital payment stocks could be among the best long-term stocks to buy in the stock market now. After all, most businesses and consumers are more than familiar with contactless payment methods by now. Not only are these payments seamless, but they also provide a new level of convenience for consumers today. Indeed, as this trend grows, more flexible methods of payment continue to arise, further incentivizing wider adoption.

For example, we could look at e-commerce giant Amazon (NASDAQ: AMZN). Just last month, the company expanded its biometric palm payment in New York. Elsewhere, cryptocurrencies are also emerging as the newest payment method in the fintech space now. While there has been much debate over the legitimacy of digital currencies lately, consumer sentiment appears positive. This is evident from a recent market research survey conducted by Mastercard (NYSE: MA). Specifically, 40% of people across the U.S., the Middle East, Africa, and the Asia Pacific region aim to use cryptocurrency over the next year. As the fintech industry continues to expand and diversify, there would be plenty of exciting news for investors to jump on.

At the same time, more conventional players in the industry continue to serve consumers around the globe as well. In particular, Sea Limited’s (NYSE: SE) digital payments division, SeaMoney, posted stellar figures in its recent quarter fiscal. According to the company, its total payment volume more than tripled year-over-year exceeding $3.4 billion. By and large, the digital payment industry appears to be more vital than ever. It stands to reason then that digital payment stocks could follow suit. On that note, here are three worth knowing on the stock market today.

Top Digital Payment Stocks To Buy [Or Sell] This Week

PayPal Holdings Inc.

PayPal is a company that operates an online payment system all around the globe. The company has been at the forefront of the digital payment revolution for more than 20 years. It leverages technology to make commerce and financial services more convenient and affordable. Impressively, PayPal boasts more than 380 million consumers and merchants in more than 200 markets to join and thrive in the global economy. PYPL stock is up by over 60% in the last year.

In early May, the company reported its strongest first-quarter financials in PayPal’s history. In it, PayPal saw its total payment volume (TPV) surge by 50% year-over-year to $285 billion. Venmo processed approximately $51 billion TPV, growing by 63%. Revenue for the quarter was $6.03 billion, growing by 31% year-over-year. The company also posted a GAAP earnings per share of $0.92. Operating income for the quarter was $1.04 billion, up by 162% year-over-year. This strong first quarter could be demonstrating sustained momentum in PayPal’s business as the world continues its shift to the digital economy. 

The company’s addressable market also continues to grow as it launches new products and services for its users. It also enjoys significant customer growth and solid engagement as it added 14.5 million net new active accounts for the quarter to a total of 392 million active accounts, up by 21% compared to a year earlier. Given the impressive financials, will you consider buying PYPL stock?

Square Inc. 

Square is a financial services and digital payments company that enables sellers to run and grow their businesses. It combines software with hardware to enable sellers to utilize mobile devices and computing devices for payments and point-of-sale solutions. It has played a vital role in the digital economy and has empowered millions to shift to its digital payment solutions. Also, Square’s tools have helped sellers make informed business decisions through the use of analytics and reporting. SQ stock is up by over 150% in the last year.

Last month, the company reported a strong first-quarter fiscal. To begin, it achieved a gross profit of $964 million, up by 79% year-over-year. Square’s Seller ecosystem generated $468 million in gross profit for the quarter, a 32% increase compared to a year earlier. Also, its Cash App generated a whopping $495 million in gross profit, an increase of 171% year-over-year. Total net revenue for the quarter was $5.06 billion, up by 266% year-over-year. 

Evidently, we see that Square is off to a good start in 2021. It continues to strengthen its international presence with its Seller ecosystem and it is focused on achieving product parity globally. During its first quarter, the company launched Square Terminal in Japan as well as Square Register in both the U.K. and Australia. This would enable more contactless commerce experiences and attract larger sellers. The company has also shown commendable resilience as, despite strict lockdowns around the world, its seller gross profit continued to grow. All things considered, will you add SQ stock to your portfolio?

Coinbase Global Inc.

Coinbase is a digital payments company that also operates a cryptocurrency platform. It boasts approximately 56 million verified users, 8,000 institutions, and 134,000 ecosystem partners in over 100 countries. It is also one of the largest cryptocurrency exchanges in the U.S. by trading volume. For retail users, Coinbase offers primary financial services to invest, store, spend, and earn crypto assets. I could see investors eyeing COIN stock now thanks to the company’s latest move.

Notably, Coinbase now allows users to add cards from their accounts to their Apple Pay (NASDAQ: AAPL) and Google Pay (NASDAQ: GOOGL) digital wallets. According to the company, consumers can now use Coinbase cards to pay for everyday goods with cryptocurrencies. Furthermore, users will also be able to earn up to 4% in crypto rewards when using their Coinbase cards. Safe to say, this marks a bold and strategic play by Coinbase. By teaming up with two of the biggest names in consumer tech, the company would be expanding its addressable market significantly. In turn, I could see this incentivizing further adoption of cryptocurrencies as an alternative payment method amongst consumers.

Overall, Coinbase continues to innovate and pave the way for cryptocurrency today. While the current weakness in Bitcoin may have resulted in COIN stock taking a breather, the company remains optimistic. Just last week, CFO Alesia Haas said that Coinbase is seeing continued momentum as there is ample interest in crypto. With all this in mind, would COIN stock be a top digital payment stock to buy now?

Originally Posted on June 1, 2021 – Best Stocks To Buy Right Now? 3 Digital Payment Stocks To Watch

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from and is being posted with permission from The views expressed in this material are solely those of the author and/or and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

In accordance with EU regulation: The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.

Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

Disclosure: Digital Assets

Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. Eligibility to trade in digital asset products may vary based on jurisdiction.

trading top