10 Best Digital Payments Stocks To Buy Now

6. Discover Financial Services (NYSE:DFS)

Number of Hedge Fund Holders: 68

Discover Financial Services (NYSE:DFS) is a digital banking and payment services company. Discover Global Network is the global payments brand of the company which offers network services across the payments ecosystem and facilitates billions in volume annually. To facilitate a seamless payment experience, this brand provides cardholders with global acceptance and cash access. Through its banking business, the firm provides personal loans, home loans, checking and savings accounts, and certificates of deposit.

With 70 million merchant acceptance points in over 200 countries and territories, Discover Financial Services (NYSE:DFS) has successfully built a rare and valuable global payments network. The company shows the continued strength of its underlying operating model through its segments, Banking and Payments. The firm’s fiscal second quarter witnessed loan growth, higher non-interest revenue, and higher net interest margin. In payment services, the pre-tax income was up $207 million year-over-year while payments services volumes increased 11% since 2023. In digital banking, pre-tax income rose $694 million while total loans increased 8%, year-over-year.

The company’s merger with Capital One is also underway with the progressing regulatory approval process in connection with the merger applications. This merger will bring two strong brands together that have a long track record of attractive and resilient financial results. It will also enable the Discover network to be more competitive with the biggest payments networks and payments companies while fulfilling Capital One’s quest to build a global payments company.

As of Q2, Discover Financial Services (NYSE:DFS) is held by 68 hedge funds and ranks among the 10 best digital payment stocks to buy now. Brave Warrior Capital is the largest shareholder in the company.