Read 6 minutes
This story originally appeared on StockMarket
These digital payment stocks are so trending this week
As parts of the world look to post-pandemic life, many of the pandemic-era trends could likely continue. For this reason, digital payment balances could be among the best long-term stocks buy now on the stock exchange. After all, most businesses and consumers are now very familiar with contactless payment methods. Not only are these payments seamless, but they also bring a new level of convenience to consumers today. Indeed, as this trend increases, more flexible payment methods are emerging, creating further incentives for wider adoption.
For example, consider e-commerce giant Amazon (NASDAQ: AMZN). Just last month, the company expanded its biometric palm payment in New York. Elsewhere, cryptocurrencies are now also appearing as the latest payment method in the fintech field. While there has been a lot of discussion recently about the legitimacy of digital currencies, consumer sentiment appears to be positive. This is the result of a recent market research survey by Mastercard (NYSE: MA). In particular, 40% of people in the US, Middle East, Africa, and Asia Pacific are aiming to use cryptocurrencies in the next year. As the fintech industry continues to expand and diversify, there would be plenty of exciting news for investors to jump on.
At the same time, more conventional players in the industry also serve consumers around the world. In particular, SeaMoney, the digital payments division of Sea Limited (NYSE: SE), had excellent results in the final quarter of the fiscal year. According to the company, the total payment volume more than tripled year over year, exceeding $ 3.4 billion. By and large, the digital payments industry seems more important than ever. It therefore stands to reason that digital payment stocks could follow suit. With that in mind, here are three things to know about today's stock market.
Top Digital Payments Stocks to Buy (or Sell) This Week
PayPal Holdings Inc.
PayPal is a company that operates an online payment system worldwide. The company has been at the forefront of the digital payments revolution for more than 20 years. It uses technology to make trading and financial services more convenient and affordable. Impressively, PayPal has more than 380 million consumers and merchants in more than 200 markets eager to join the global economy and thrive. The PYPL share is up over 60% in the past year.
In early May, the company reported its strongest financial data for the first quarter in PayPal history. In it, PayPal recorded a 50% increase in total payment volume (TPV) year over year to $ 285 billion. Venmo processed around $ 51 billion in TPV, which is a 63% growth. Quarterly revenue was $ 6.03 billion, up 31% year over year. The company also posted GAAP earnings per share of $ 0.92. Operating income for the quarter was $ 1.04 billion, up 162% year over year. That strong first quarter could demonstrate continued momentum in PayPal's business as the world continues its digital transformation.
The company's addressable market continues to grow as it launches new products and services for its users. It also enjoys significant customer growth and solid engagement as it added 14.5 million new active accounts in the quarter to a total of 392 million active accounts, up 21% year over year. Given the impressive financial data, are you considering buying PYPL stock?
(Continue reading) 6 Top Dividend Stocks To Consider In Your Retirement Plan
Square is a financial services and digital payments company that empowers sellers to run and grow their business. It combines software with hardware to enable sellers to use mobile devices and computing devices for payments and point of sale solutions. It has played a critical role in the digital economy, enabling millions of people to switch to their digital payment solutions. Square's tools have also helped sellers make informed business decisions through the use of analytics and reports. The SQ share has risen by over 150% in the past year.
Last month the company reported a strong first quarter. Initially, the company had gross profits of $ 964 million, up 79% over the previous year. Square's seller ecosystem generated gross income of $ 468 million for the quarter, up 32% year over year. Plus, the cash app generated a whopping $ 495 million gross profit, a 171% increase over the previous year. Total net sales for the quarter were $ 5.06 billion, an increase of 266% year over year.
Obviously, Square is off to a good start into 2021. The company continues to strengthen its international presence with its seller ecosystem and is focused on achieving product parity around the world. In the first quarter, the company launched Square Terminal in Japan and Square Register in the UK and Australia. This would enable more contactless trading experiences and attract larger sellers. The company has also shown commendable resilience as the seller's gross profit continued to grow despite strict lockdowns around the world. All in all, will you add SQ stocks to your portfolio?
Coinbase Global Inc.
Coinbase is a digital payments company that also operates a cryptocurrency platform. It has approximately 56 million verified users, 8,000 institutions, and 134,000 ecosystem partners in over 100 countries. It is also one of the largest cryptocurrency exchanges in the US by trading volume. For home users, Coinbase offers primary financial services for investing, storing, spending and earning crypto assets. I could see that thanks to the company's recent move, investors are now looking at the COIN stock.
In particular, Coinbase now allows users to add cards from their accounts to their Apple Pay (NASDAQ: AAPL) and Google Pay (NASDAQ: Demokratie) digital wallets. According to the company, consumers can now use Coinbase cards to pay for everyday goods with cryptocurrencies. In addition, users can also earn up to 4% in crypto rewards when they use their Coinbase cards. It's safe to say that this is a brave and strategic game from Coinbase. By partnering with two of the biggest names in consumer technology, the company would vastly expand its addressable market. In return, I could see that this is an incentive for the continued acceptance of cryptocurrencies as an alternative payment method among consumers.
Overall, Coinbase continues to innovate today and pave the way for cryptocurrency. While the current weakness in Bitcoin may have caused COIN shares to take a breather, the company remains bullish. Just last week, CFO Alesia Haas said that Coinbase is seeing sustained momentum as there is huge interest in crypto. Against this background, would the COIN share be a top share for digital payments that can be bought now?