Experts believe that global digital payment market size has touched USD 140.00 billion in 2023, and this market should be able to compound at ~15.30% between 2024-2032 to achieve the value of $437.27 billion by 2032. Top global digital payment companies continue to see rapid growth worldwide as the result of growing popularity of mobile wallets. Global 5G networks can increase digital payment market share. In a bid to gain competitive advantage, global e-commerce service providers continue to shift away from traditional debit/credit card and consumer financing solutions. Focus of such companies are now on client engagement strategies which take advantage of digital payments.
Top global digital payment companies give significant advantages for the individuals, governments, businesses, and organisations. These benefits include cost savings, transparency, and security. Advantages like these further contribute to expansion of global digital payments market size. Small businesses have and should benefit significantly from ability to switch to digital payments and receipts. This is because it allows for faster and more secured payments having no risk or fees. Digital payment means a transaction through digital or online modes, with no physical exchange of the currency. Therefore, both the parties, the payer and the payee, make the use of electronic mediums or platforms so that the money can be exchanged.
Since the holiday season is about to begin in the US, Americans are expected to go out on a shopping spree, making the use of digital payments. Therefore, investors are required to be opportunistic and buy some of the top global digital payment companies as these transactions will ultimately benefit these companies.
With this in mind, let us check out top global digital payment companies to buy before holiday season kicks off.
1. American Express Company
American Express Company is the global financial institution, which has its operations in about 130 countries, that gives consumers and businesses charge and credit card payment products.
The company has released 3Q23 results, with net income of $2.5 billion, or $3.30 per share in comparison to with net income of $1.9 billion, or $2.47 per share, a year ago. It saw another quarter of strong revenues and EPS, that increased 13% and 34%, respectively, from year earlier. This exhibits continued momentum it built in its business over the past few years.
Overall, card member spending remained strong and credit performance was best-in-class, exhibiting the company’s premium global customer base. Total card member spending grew 7% from a year earlier on FX-adjusted basis, with spending by the company’s U.S. consumer Card Members growing 9% and spending in International Card Services segment growing 15% on an FX-adjusted basis.
Consolidated total revenues net of interest expense in 3Q23 came in at $15.4 billion, exhibiting a rise of 13% from $13.6 billion in the previous year. Higher total revenue was mainly because of increased average loan volumes and increased cardmember spending.
For FY23, the company expects revenue growth in the range of 15% – 17%, and EPS is expected of between $11.00 – $11.40. The company remained confident in its ability to achieve revenue growth and EPS for the full-year consistent with its annual guidance.
2. Visa Inc.
The company has been categorised as a largest payment processor in the world, operating in more than 200 countries and processing transactions in more than 160 currencies.
The company saw another quarter of strong results, exhibiting stable business trends. Consumer spending was resilient, enabling growth in payments volume and processed transactions. Cross-border volume acted as a tailwind, fuelled by travel growth from recovery and summer tourism.
It focused on accelerating growth throughout consumer payments, new flows and value-added services by making investments in brand, innovation and capabilities. In 3Q, its net revenues grew by 12% year-over-year to $8.1 billion and GAAP net income went up by 22% to $4.2 billion.
Growth in net revenues in 3Q was because of year-over-year growth in payments volume, cross-border volume and processed transactions. Payments volume for the three months ended March 31, 2023, on the basis of which 3Q service revenues are recognized, went up by 10% over the prior year on constant-dollar basis. Total processed transactions, that exhibit transactions processed by Visa, came in at 54.0 billion, a 10% rise year-over-year.
3. Mastercard Incorporated
The company has been categorised as a second- largest payment processor in the world, operating in more than 200 countries and processing transactions in more than 150 currencies.
In 2Q, the company saw net income of $2.8 billion, and diluted earnings per share (EPS) of $3.00 and it saw net revenues of $6.3 billion, exhibiting a rise of 14%, or 15% on a currency-neutral basis.
It delivered strong revenue and earnings growth dur to strong consumer spending, mainly in travel and experiences, and strength in services. Cross-border travel volume exhibited strong growth again in 2Q, reaching 154% of pre-pandemic levels.
Growth in net revenue was because of its payment network and its value-added services and solutions. Payment network net revenue grew 13% as a result of gross dollar volume growth, cross-border volume growth and rise in switched transactions. As of June 30, 2023, the company’s customers had issued 3.2 billion Mastercard and Maestro-branded cards.
During 2Q23, the company repurchased 6.5 million shares at the cost of $2.4 billion and paid $541 million in dividends.
For third-quarter 2023, it expects net revenue growth (GAAP basis) of low-teens on year-over-year basis and operating expenses growth of low-single-digits.
Conclusion
While the above-mentioned top global digital payment companies are expected to benefit from increased usage of online transaction in the upcoming holiday season, there are several other companies which might benefit from improved consumer confidence.
Rise of contactless payments, higher usage of digital wallets and mobile payment apps and strong expected growth of fintech startups should support top global digital payment companies in 2024. Further growth is expected to come from integration of blockchain technology into payment systems. Asia-Pacific region should dominate the market, followed by North America and Europe.
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