In this article, we will discuss 11 Best Digital Payments Stocks to Buy According to Analysts.
Digital payment stocks are companies that specialize in designing, developing, or administering digital payment solutions. These firms use technology to enable electronic transactions between individuals, businesses, and institutions. Businesses that provide services such as online payment gateways, mobile payment apps, and peer-to-peer payment platforms can all be considered digital payment stocks. These technologies include digital wallets, payment processing systems, and blockchain-based payment solutions.
The global digital payment market is booming. According to Grand View Research’s report, the global digital payment market is anticipated to reach $96.07 billion in 2023, with a compound annual growth rate (CAGR) of 21.1% between 2024 and 2030. In terms of solution insights, payment processing led the market with 26.18% of worldwide revenue in 2023. North America dominated the market, accounting for 33.9% of total revenue in 2023. Europe is projected to see a substantial CAGR between 2024 and 2030.
Meanwhile, according to Marqueta’s 2024 State of Payments Report, 46% of survey respondents in the USA reported using some type of contactless payment during the last seven days. This is in contrast with 80% in the United Kingdom and 69% in Australia. Emerging technologies such as cryptocurrencies and the metaverse aim to drive payment innovation and borderless payment choices for customers.
As per McKinskey‘s survey, in 2024, around 90% of consumers in both the US and Europe said they made at least one digital payment in the past year, with usage in the US hitting a record 92%. The survey defines digital payments as transactions completed online—through websites or apps—or in physical stores using dedicated apps like digital wallets. In-app and in-store payments contributed to this expansion, with digital wallet usage for in-store transactions rising from 19% in 2019 to 28% in 2024. This expansion reveals a $10 trillion annual market for both regions. Notably, 20% of digital wallet users in the country occasionally leave home without their traditional wallets, underlining the trend toward digital-first transactions.
There is also a difference in customer preferences between the US and Europe. European users prefer to choose local solutions like iDEAL in the Netherlands or Swish in Sweden, whereas US consumers prefer retailer apps. In America, younger consumers are especially attracted to “Buy Now, Pay Later” marketplaces, spending 1.5 to 2 times more than those who start on merchant websites. Rewards and offers are increasingly influencing payment decisions, with 25% of U.S. consumers citing rewards as a significant factor. This shows the increasing importance of digital wallets in everyday transactions. It opens up chances for payment providers to improve omnichannel loyalty programs and extend retail platforms. Furthermore, A2A payment formats may expand, particularly in the United States, where regulatory improvements could lower merchant costs.
Looking forward, Deloitte’s 2025 payment industry insights outlook revealed that consumers are turning to digital payments, with check transactions dropping as large stores adopt a “check zero” strategy to reduce costs and fraud concerns. Global e-commerce sales are expected to reach $6.3 trillion by 2024, fueling the growing use of credit cards, debit cards, and peer-to-peer payments. P2P app usage has gone up by 12% since 2021, but cash and check P2P payments have dropped. Digital payments are becoming more popular in B2B due to cost savings and technological developments, but checks continue to play an important role.
With that said, here are the 11 Best Digital Payments Stocks to Buy According to Analysts.
A businesswoman using a digital tablet, making a payment using the company’s payment processing technology.
Our Methodology
For this article, we first screened for companies that have operations in digital payments. Then, we identified stocks with positive analyst coverage and upside potential. Finally, from that group, we selected the 11 stocks that had the highest upside potential as of April 9, 2025. We have only included stocks in our list with an upside potential of 35% or higher. The stocks are ranked in ascending order of the upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Bank of America Corporation (NYSE:BAC)
Analysts’ Upside Potential as of April 9: 37.40%
Bank of America Corporation (NYSE:BAC) is one of the Best Digital Money Stocks. It is a major US financial company with a strong presence in digital banking and payments. Zelle, a peer-to-peer (P2P) payment service that is incorporated into the bank’s banking app, serves as the foundation of the digital payment ecosystem.
Its clients are increasingly using digital channels for payments, with Zelle usage achieving new highs. In 2024, 23.7 million Bank of America Corporation (NYSE:BAC) clients made use of the platform to make and receive 1.6 billion transactions totaling $470 billion, representing a 25% increase in transactions and a 26% rise in value year-on-year. Zelle transactions now outnumber checks, with roughly three times as many transactions as checks executed in Q4. Additionally, corporate clients approved over $1 trillion in payments using the CashPro App, representing a 25% increase year on year.
The company’s financial performance in 2024 shows stability, with revenue climbing by 11.94% year on year to $192.4 billion and net income growing by 2.6% to $25.5 billion. Although short-term headwinds, such as inflation and interest rate swings, have weighed on the stock, Bank of America Corporation (NYSE:BAC)’s well-diversified operations and strong credit ratings lay the groundwork for future success.
Hardman Johnston Global Equity Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its Q4 2024 investor letter:
“Bank of America Corporation (NYSE:BAC) is the second largest bank in the developed world and operates the third largest branch network in the US. With 86% of revenues coming from the US, the bank is a clear beneficiary of the lower regulatory environment expected from the incoming administration. The company’s business is highly diversified across retail, commercial, wealth management, and investment banking, with significant scale across all verticals. Management believes there is a big opportunity going forward in growing and monetizing its mass retail client base. Wealth is another huge opportunity, with the Merrill Lynch platform enabling customers to make more transactions and purchase additional products. Lastly, Bank of America has an opportunity to increase efficiency through cost reduction and online banking. Our expectation is for the bank’s ROE to move significantly higher, driving EPS growth and higher multiples.”
10. StoneCo Ltd. (NASDAQ:STNE)
Analysts’ Upside Potential as of April 9: 39.02%
StoneCo Ltd. (NASDAQ:STNE) is a financial technology company that offers a variety of solutions and services to assist merchants and integrated partners with electronic commerce in Brazil. The company provides several fintech and software solutions, including advanced point-of-sale systems, mobile payment applications, online payment gateways, and merchant services that help accelerate payment processing across in-store, online, and mobile platforms. It is among the Best Digital Money Stocks.
In 2024, the company’s MSMB showed good financial performance, with card TPV reaching BRL 403 billion, a 15% YoY increase, and total MSMB TPV exceeding forecasts at BRL 454 billion, a 22% YoY increase. StoneCo Ltd. (NASDAQ:STNE)‘s retail deposits outperformed expectations, finishing at BRL 8.7 billion, because of strong performance in payments and financial services. The firm’s credit portfolio increased dramatically to BRL 1.2 billion, above the BRL 800 million target, while non-performing loans remained at 3.61%. Net income was BRL 2.2 billion, exceeding the BRL 1.9 billion expectation, while adjusted administrative expenses remained below the projection at BRL 994 million.
StoneCo Ltd. (NASDAQ:STNE)’s fourth quarter displayed ongoing success, with adjusted EBT increasing 22% and adjusted net income up 18% YoY. The banking active client base climbed by 46% to 3.1 million, while software revenue jumped by 15% year on year, with adjusted EBITDA expanding 54%, resulting in a high 21.6% margin. These results show its strong development in the payment, banking, and software divisions.
9. Apple Inc. (NASDAQ:AAPL)
Analysts’ Upside Potential as of April 9: 39.78%
Over time, Apple Inc. (NASDAQ:AAPL)’s strong Services business category has expanded to include Apple Wallet and Apple Pay, which allow customers to manage payments using their iPhones, making it one of the Best Digital Money Stocks.
By focusing on high-end, the company’s intricately integrated ecosystem of goods, services, and software has strengthened its long-term dominance in the consumer electronics industry. This ecosystem focuses on Apple Inc. (NASDAQ:AAPL)’s flagship iPhone, which accounts for 46% of the company’s net sales. It gains price power, switching costs, and network effects as a result. Retaining customers within this walled garden improves the value of all other Apple services and products. This technique allows the business to grow and sets it apart.
Apple Inc. (NASDAQ:AAPL) launched the fiscal year 2025 with strong first-quarter data, posting $124.3 billion in revenue, a 4% rise over last year, and earnings per share of $2.40, up 10%. The business attributed the double-digit EPS rise to record revenue and robust margins, which enabled it to distribute over $30 billion back to shareholders.
In terms of the environment, the firm moved closer to its goal of becoming carbon-neutral across its entire footprint by 2030 by introducing the first-ever carbon-neutral Mac and a carbon-neutral Apple Watch option. These successes show Apple Inc. (NASDAQ:AAPL)’s strong sustainability leadership.
8. Alphabet Inc. (NASDAQ:GOOGL)
Analysts’ Upside Potential as of April 9: 45.30%
Alphabet Inc. (NASDAQ:GOOGL) has converted itself into a true technology behemoth, generating tens of billions of dollars in free cash flow annually with solutions ranging from advertising to cloud computing and self-driving cars. Its overall strength is that it continues to lead in several sectors, including search, artificial intelligence, video, and cloud computing, despite the fact that its main search division has been the focus of antitrust concerns. The firm offers the Google Wallet program for Android, which allows users to make payments, which includes it on our list of the Best Digital Money Stocks.
Alphabet Inc. (NASDAQ:GOOGL)’s Google and the Saudi Central Bank (SAMA) recently partnered to launch Google Pay in Saudi Arabia through “mada,” the country’s payment system. The service is anticipated to launch in 2025.
Alphabet Inc. (NASDAQ:GOOGL) announced a record annual revenue of $350 billion in 2024, representing a 14% YoY growth (15% in constant currency). Google Cloud’s revenue rose 30% year on year to $12 billion in Q4, led by demand for GCP, AI infrastructure, and generative AI products. The company made substantial AI and infrastructure developments, such as the release of Gemini 2.0, improvements to AI models, and the growth of cloud regions and data centers. Google Services revenue hit $84 billion in Q4 of 2024, up 10% year on year, while YouTube advertising revenue surged 14% to $10.5 billion. The business also displayed strong financial health, generating $24.8 billion in free cash flow in the fourth quarter and $72.8 billion for the full year, strengthening its position as a leader in AI, cloud computing, and online marketing.
7. Shopify Inc. (NASDAQ:SHOP)
Analysts’ Upside Potential as of April 9: 51.39%
Shopify Inc. (NASDAQ:SHOP) is ranked seventh on our list of the Best Digital Money Stocks. Shopify Payments is the payment platform operated by the Canadian e-commerce company. This makes it possible for Shopify store owners to accept payments online without relying on third-party services.
The firm’s moat is strengthened by its extensive platform and loyal customer base. Its size allows for aggressive investment in product development, which strengthens its lead in functionality and tooling. Its 8,000+ app ecosystem, combined with a rapidly growing B2B market (with six straight quarters of 100%+ GMV growth), generates a network effect that keeps merchants locked in. Up to 90% of customers stick with the company because switching is expensive, especially for larger retailers who depend on its payment, inventory, and logistical services. Shopify Payments currently accounts for 64% of total GMV, with Shop Pay continuing to beat competitors in terms of conversion. Even as competition heats up, Shopify Inc. (NASDAQ:SHOP) becomes increasingly tough to displace due to these embedded technologies.
The company’s financial performance remains strong. Q4 of 2024 sales climbed 31% YOY, primarily due to a 33% growth in its Merchant Solutions division, which now accounts for 76% of overall revenue. Gross Payments Volume soared 35% to $61 billion, showing the company’s growing importance in transaction processing. Shopify Inc. (NASDAQ:SHOP)’s Subscription Solutions segment, which generates high-margin recurring income, jumped 27% year on year and currently accounts for 24% of overall revenue. Although the segment’s gross margin fell slightly to 79.9% due to mixed and short-term challenges from the transition to three-month free trials, this strategic decision is projected to boost merchant stickiness and long-term GMV capture. The Monthly Recurring Revenue shot up by 24% in Q4, with broad-based growth across basic, Plus, and offline levels, highlighting the strength of its client base and revenue sources.
6. Nu Holdings Ltd. (NYSE:NU)
Analysts’ Upside Potential as of April 9: 54.06%
Nu Holdings Ltd. (NYSE:NU) provides digital banking services, ranking it among the Best Digital Money Stocks. It provides a variety of financial services, including credit cards, personal accounts, investments, personal loans, insurance, mobile payments, business accounts, and rewards. The company generates the majority of its revenue in Brazil.
The previous year was a record for the company. Nu Holdings Ltd. (NYSE:NU) generated outstanding results in 2024, with revenue jumping 58% YoY to $11.5 billion, driven by a 23% rise in average revenue per active client, which reached $10.7. The firm experienced significant client growth, finishing the year with 114 million users, with a gain of 20.4 million new subscribers. Active customer growth was high at 22% YoY. Profitability also climbed, with net income nearly doubling to close to $2 billion, resulting in a 28% annualized return on equity. Operational efficiency reached new highs, with the efficiency ratio dropping to 29.9%, ranking Nu among the Best Digital Payment Stocks.
Nu Holdings Ltd. (NYSE:NU) witnessed deposits soar 55% YoY to $28.9 billion, while its interest-earning portfolio surged 75% to $11.2 billion. Customers in Mexico surpassed 10 million, with deposits rising 438% to $4.5 billion, while secured lending rose by 615% YoY to $1.4 billion.
5. Alibaba Group Holding Limited (NYSE:BABA)
Analysts’ Upside Potential as of April 9: 55.13%
Alibaba Group Holding Limited (NYSE:BABA), one of the best digital payments stocks, is the world’s largest online and mobile retailer in terms of gross merchandise volume. It operates several online marketplaces in China, including Tmall (business-to-consumer) and Taobao (consumer-to-consumer). The firm’s most valuable cash flow-generating operation is its China commerce retail division. Additional revenue streams include overseas retail and wholesale, China wholesale, cloud computing, digital media and entertainment platforms, Cainiao logistics services, local consumer services, and innovation projects.
AliPay, which allows for digital payments through smartphones, is just one of the many services and products in its range. As of October 2024, Alipay+ had over 30 payment partners, including leading e-wallets and bank apps from Asia and beyond, and 1.6 billion users, linking its users to over 90 million merchants in 66 markets. The stock went up by more than 14% YTD, making it one of the Best Digital Money Stocks.
Alibaba Group Holding Limited (NYSE:BABA) has posted solid financial results for the fourth quarter of 2024, including a revived growth trajectory and better operational efficiency. The company’s revenue for the quarter that ended December 31, 2024, was RMB 280.15 billion ($38.38 billion), an 8% increase over the previous year. Income from operations increased by 83% year on year to RMB 41.2 billion ($5.65 billion), fueled by lower intangible asset impairment and higher adjusted EBITA, which climbed by 4% to RMB 54.85 billion ($7.52 billion). Net income attributable to shareholders surged 333% year on year to RMB 48.95 billion ($6.71 billion), caused by excellent operational performance and mark-to-market gains on equity investments. The firm’s cloud computing segment also experienced great growth, with revenue jumping 13% year on year, driven by the rapid expansion of AI-related services.
Nightview Capital stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2024 investor letter:
“Artificial intelligence is no longer just a promise—it’s becoming the defining force of the modern economy. From self-driving vehicles to humanoid robotics, intelligent systems are not only enhancing efficiency but unlocking entirely new markets. These systems process and learn from vast amounts of real-world data, iterating and improving at a scale no human could achieve.
In our view, this isn’t just innovation; it’s exponential evolution. Companies leading the AI revolution are building formidable data moats, making it nearly impossible for latecomers to compete. Every mile driven by an autonomous vehicle, every task completed by an industrial robot—these actions feed a cycle of continuous improvement.
Industries like transportation, healthcare, and logistics are on the brink of massive disruption, and we believe this is a pivotal moment.
Alibaba Group Holding Limited (NYSE:BABA): Core Opportunity” Alibaba’s focus on stabilizing its core businesses, coupled with growth of its cloud and AI divisions, positions the company for a breakout. With 25% of its market cap in cash, We believe Alibaba offers a highly compelling risk / reward opportunity from a valuation perspective.
Competitive Advantage: Core Business Recovery: Alibaba’s e-commerce platforms, including Taobao with 930 million monthly active users, remain instrumental in China’s retail landscape. Revenue grew 5% YoY in the latest quarter, reflecting strategic improvements in user experience and pricing…” (Click here to read the full text)
4. PayPal Holdings, Inc. (NASDAQ:PYPL)
Analysts’ Upside Potential as of April 9: 58.00%
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the most prominent leaders in online payments, ranking fourth on our list of the Best Digital Money Stocks. Its name has revolutionized how consumers pay for products both online and offline, and its Venmo person-to-person payment network has become a market leader.
The company’s new leadership team is actively pushing growth by implementing efficiency improvements, Fastlane checkout, and a new advertising platform. PayPal Holdings, Inc. (NASDAQ:PYPL) has more than $11 billion in cash and assets on its balance sheet, as well as around $5 billion in annual free cash flow, giving it the financial flexibility to pursue opportunities as they occur. The firm currently has 432 million active accounts in over 200 countries worldwide. Its profitability and market-leading position suggest that the industry is likely to remain strong.
Strategically, the company is prioritizing innovation to strengthen its position in payments and commerce. PayPal Holdings, Inc. (NASDAQ:PYPL) launched and expanded a number of unique services in 2024, including new branded checkout experiences, PayPal Everywhere, Fastlane, and PayPal Complete Payments. The business introduced PayPal Everywhere in September 2024. The invention allowed the firm to significantly increase debit card adoption and open up new areas of spending. The firm plans to expand PayPal Everywhere into European markets by 2025.
3. Global Payments Inc. (NYSE:GPN)
Analysts’ Upside Potential as of April 9: 68.74%
Global Payments Inc. (NYSE:GPN) is among the Best Digital Money Stocks. It leading digital payment company that offers payment technology and software solutions to merchants, financial institutions, and other businesses globally. It is a major provider of payment processing and software solutions that specializes in supporting small and medium-sized businesses. The business operates in 30 countries and gets roughly one-fourth of its sales from outside North America, especially in Europe and Asia. In 2019, the company merged with Total System Services in an all-stock transaction, giving Total System Services owners 48% of the combined company’s shares. The merger expanded issuer processing operations.
Global Payments Inc. (NYSE:GPN) had an impressive financial performance in 2024, with 6% adjusted net revenue growth, record adjusted operating margins, and double-digit earnings growth. The business earned $3 billion in adjusted free cash flow and distributed $1.8 billion to shareholders. The Merchant segment expanded by 7% in Q4, driven by POS and software performance, with a 25% growth in annual recurring revenue opportunity in North America. New alliances with Whataburger and a worldwide QSR, as well as significant clients in education and real estate, all contributed to strategic expansion. Furthermore, the firm has raised its operational transformation target to more than $600 million in annual run-rate operating income benefits by early 2027.
On February 14, 2025, RBC Capital analyst Daniel Perlin upgraded Global Payments Inc. (NYSE:GPN)’s price objective to $139 from $130 and maintained an Outperform rating on the stock following its Q4 results and forecast. The analyst tells investors in a research note that the company’s transformation program, which was announced at Investor Day, is still in full swing, with divestitures, portfolio reduction, and a simplification of the overall organizational structure. The firm’s more uniform go-to-market moves were also evident in the quarter and are reflected in FY25 guidance, according to RBC.
2. Affirm Holdings, Inc. (NASDAQ:AFRM)
Analysts’ Upside Potential as of April 9: 85.10%
Affirm Holdings, Inc. (NASDAQ:AFRM) provides a platform for digital and mobile-first commerce. It includes a consumer-facing point-of-sale payment solution, merchant commerce tools, and a consumer-focused app. The company produces revenue through merchant networks, virtual card networks, and other channels. Geographically, it generates more than half of its revenue from the United States. The business offers buy now, pay later services. As a prominent BNPL lender in the United States, it provides diverse lending alternatives. The company’s Affirm Card debit card offering also allows customers to pay in advance for certain transactions. The stock surged by more than 4% in the past year, making it among the Best Digital Money Stocks.
Affirm Holdings, Inc. (NASDAQ:AFRM) expanded globally in late 2024, beginning in the United Kingdom in November as its first market outside of the United States and Canada. The business went live in thousands of stores in October after partnering with Metro by T-Mobile and GoodRx to finance certain prescriptions. The business also collaborated with Sweetwater to strengthen its footprint in e-commerce and telesales. Active merchants climbed 21% to 337,000 as of December 31, 2024, while active customers surged 23% YoY to 21 million.
Goldman Sachs analyst Will Nance boosted Affirm Holdings, Inc. (NASDAQ:AFRM)’s price objective to $56 from $50 and maintained a Buy rating on the stock after the company filed an 8K filing stating that Walmart accounted for 5% of its gross merchandise volume and 2% of operational profits. In terms of incremental thoughts on the announcement, given the new facts, the firm believes the financial impact on the firm will be significantly less. According to Goldman, this is a result of Walmart’s past dealings with third-party credit providers. In general, it is believed that the low profitability of this portfolio reflects the challenges of underwriting Walmart’s lower-end clientele and the comparatively lower level of profitability that Walmart probably bargains with its suppliers.
1. Block, Inc. (NYSE:XYZ)
Analysts’ Upside Potential as of April 9: 89.63%
The Best Digital Money Stock, Block, Inc. (NYSE:XYZ), previously known as Square, has expanded from a tool for merchants to accept credit cards through mobile devices to a large-scale financial ecosystem for consumers and small businesses. Today, the firm processes payments for merchants at an annual pace of over $240 billion, has a specialized banking subsidiary (Square Financial Services) and operates a booming small business financing platform.
Block, Inc. (NYSE:XYZ)’s Cash App is particularly noteworthy, with 57 million active monthly users as of late 2024 and nearly limitless potential to expand its consumer financial service offerings. The site already supports direct transfers, debit cards, Bitcoin buying and selling, and an easy-to-use stock trading interface. Cash App could still be in its early phases of commercialization, with significant upside potential in the future.
Block, Inc. (NYSE:XYZ) delivered a solid financial performance in 2024, with gross profit climbing 18% YoY to $8.89 billion, driven by Square’s 15% growth and Cash App’s 21% increase. Adjusted EBITDA rose 69% to $3.03 billion, whereas adjusted operating income climbed more than 4.5 times to $1.61 billion. Cash App’s paycheck deposit actives reached 2.5 million, a rise of 25% year on year, following the launch of Afterpay on Cash App Card and growth plans for Cash App Borrow. Square GPV jumped 10% YoY in Q4, with U.S. growth improving by 200 basis points to 6.9%, boosted by higher same-store sales and retention.
Looking ahead, Block, Inc. (NYSE:XYZ) projects at least 15% YoY gross profit growth in 2025, despite currency headwinds and increasing marketing and product development investments.
Overall, Block, Inc. (NYSE:XYZ) ranks first among the 11 Best Digital Payments Stocks to Buy According to Analysts. While we acknowledge the potential of digital payment companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than XYZ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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