Payment companies all over the world have had a phenomenal 2020 - be it aggregators, processors, gateways, wallets, hardware providers, buy now pay later services, online or mobile apps, you name it. Digitization of services are here to stay and will only be adding fuel to this already well lit fire. Let me name a few for you to survey:
Companies that are growing rapidly:
- Square (NYSE: SQ)
- Pagseguro (NYSE: PAGS)
- StoneCo (NASDAQ: STNE)
- Afterpay (ASX: APT)
- Zip co. (ASX: Z1P)
- Lightspeed (TSE: LSPD)
- Fawry (EGX: FWRY)
- Adyen (AMS: ADYEN)
Companies that have their own payment services as a part of their wider business:
- Shopify [Shopify Pay] (NYSE: SHOP)
- Tencent [Wepay] (HKG: 0700)
The veterans:
- Visa (NYSE: V)
- Mastercard (NYSE: MA)
- PayPal (NASDAQ: PYPL)
- Global Payments (NYSE: GPN)
Going public via a SPAC:
- Payoneer
Not (yet) listed on a stock exchange:
- Stripe
- Klarna
- Paytm
- Ant financial
- Paysafe (Skrill)
- Checkout
- Transferwise
- Trustly
There are many more out there, but the above are sufficient for you to spot the outperformance globally.
If you are looking to invest in this sector and want to spread the risk, there are also some great ETFs that can be explored. Example:
ETFMG Prime Mobile Payments ETF (NYSEARCA: IPAY)
Let me know if you have a favorite. Share your thoughts below.
All the best and happy investing!
Ali Godrej Patel
Disclaimer: I own shares of some stocks mentioned above and might have also recommended them to some of my clients.