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written by reader Payments stocks Visa, Mastercard, Paypal, Crypto

By Matt, October 20, 2021

I’ve been watching the payments sector stocks and how they have recently been lagging the market. Most news bases the claim on lower volumes, less purchases, less travel revenues. There was a little bump around mid year and then a 3rd (I think) round of increase in covid infections seems to have delayed the re-opening plays.
Newer payments stocks, such as paypal, seems to be growing at bigger trajectories than the old dogs (V and MA).
Does anyone think Visa and Mastercard are bargain plays at current levels? My thinking is once we get past this next covid spike, revenues should continue to climb. And now, inflation seems to be on a lot of people’s minds. If I’m making the correct claim; Visa and Mastercard get a percentage of each transaction so the should be getting more when prices increase, assuming spending doesn’t slow.

The other point I’d like to make for a bullish case on Visa and Mastercard is competition such as Coinbase and other crypto transaction mediums. I believe you can own some sort of crypto through Paypal too. Crypto ownership is growing exponentially, however, is it still a small percentage of “Money” out there. Visa and Mastercard have made small acquisitions into crypto and I think all it will take is an app sponsored by either and they have a userbase that would be more apt to use something they are familiar with (Trust a Visa app when they have a Visa card) over something new.

Or perhaps Visa and Mastercard a, re becoming mature stocks with slower growth that will start to perform within the same line of overall S&P.
What are you guy’s thoughts?
And Travis, What do you think about the payments sector? Too much competition? Just rather invest in something else? I noticed you don’t own any in your portfolio.

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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