10 Best Digital Payments Stocks To Buy Now

5. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 68

American Express Company (NYSE:AXP) serves as a globally integrated payments company. The company started off as a freight forwarding company in 1850. It operates through multiple segments, including U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The firm’s integrated payments platform comprises card-issuing, merchant-acquiring, and card network businesses.

American Express has efficiently positioned itself as the world’s largest integrated payments platform. The firm’s broad and diverse customer base including consumers, small businesses, mid-sized companies, and large corporations spans the globe. Its world-class service has also earned it a place among the most valuable brands in the world. Thus, the brand name remains strong and intact.

The quality of AXP’s loyal premium customer base with high spending and excellent credit profiles, a well-managed expense base, and the rapidly expanding scale of the business have brought momentum to the firm’s core business. The growing scalability of American Express can also be witnessed from the 24 consecutive quarters of double-digit growth in card fee revenue and strong new account acquisitions. Revenues have expanded by almost 50% as compared to 2021’s year-end while card member spending has risen by nearly 40%.

The leadership position in the digital payments landscape, brand name, and strong growth trajectory rank the firm among the 10 best digital payment stocks to buy now. The number of hedge funds owning stakes in American Express Company (NYSE:AXP) was 68 in Q2 2024. The consolidated value of these stakes is nearly $38.48 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q2.