We recently published a list of 11 Best Digital Payments Stocks to Buy According to Analysts. In this article, we are going to take a look at where StoneCo Ltd. (NASDAQ:STNE) stands against other best digital payment stocks.
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.
A team of software engineers in a digital workspace collaborating on a financial technology software solution.
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).
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.
Overall, STNE ranks 10th 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 timeframe. 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 STNE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.”
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Disclosure: None. This article is originally published at Insider Monkey.
