10 Best Digital Payments Stocks To Buy Now

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 142

Mastercard Incorporated (NYSE:MA) is a global payment technology solutions company that serves consumers, small and medium businesses, government and public sector, large enterprises, as well as banks and credit unions. The firm has pioneered technology to make payments smarter and safer for over 50 years. Mastercard’s purpose revolves around powering an inclusive digital economy that tends to benefit all.

Mastercard serves as a payments industry leader which is currently demonstrating broad-based momentum across all aspects of its business. It continues to drive growth in payments through expanding in new geographies, winning and retaining deals, and digitizing the payments ecosystem. A prime example of this is Africa which is the world’s largest adopter of mobile money accounts. Mastercard partners with large telcos and mobile network operators including Airtel, MTN, and Vodafone Egypt to increase its market share in Africa.

With double-digit net revenue and earnings growth, the firm successfully closed another quarter. Driven by the growth in the payment network and value-added services and solutions, net revenue went up by 11%. The cross-border volume growth of 17% year-over-year and healthy consumer spending supported the company’s strong results.

As Mastercard continues to lead its way in digital payments, it is addressing consumer pain points. Recently, the company launched its new Payment Passkey Service which is debuting first in India. This service replaces traditional passwords and OTPs with device-based biometric authentication methods. The Payment Passkey Service is a game changer for online checkout and supports Mastercard’s vision for a token economy. In a market where fraud cases have risen by nearly 300% in the last two years, the firm is freeing so many Indian users from the trouble of forgetting or accidentally sharing their passwords or OTPs.

The strong business fundamentals, a diversified business model with healthy consumer spending, established demand for value-added services, and the persistent shift to digital forms of payment place Mastercard Incorporated (NYSE:MA) in a good market position. As of Q2 2024, the stock is held by 142 hedge funds thereby ranking among the best digital payment stocks to buy now. Akre Capital Management was the top shareholder with a stake worth $1.7 billion.