The article compares five companies that earn fees on payments: Visa, Mastercard, American Express, PayPal and Capital One, distinguishing networks that only move payments from firms that also lend. Visa handled 74.2 billion transactions in the three months ended Sept. 30, up 10% year over year, with net revenue of $12.1 billion, up 13%. Mastercard's value-added services revenue rose 19% to around $4.1 billion, about 41% of net revenue. PayPal's payment volume reached $487.1 billion, up 6%, while its cut fell to around 1.58% of volume. Visa and Mastercard trade near 28 times analysts' 2027 earnings estimates, versus about 10 times for PayPal and 9 times for Capital One; the author says the two stocks he would choose are Visa and Mastercard.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
paymentsVisaMastercardPayPalvaluation
Open a keyword to see other news on the same topic.
Related news
- PayPal Is Down More Than 80% From Its Peak. Here's Why I Still Own It
PayPal shares have fallen more than 80% from their mid-2021 peak of about $310, and takeover-talk reports have faded. The author still holds the stock despite trading below his average cost, arguing it offers one of the best risk-reward profiles in value investing. In the most recent quarter, revenue grew 5% and total payment volume rose 10% year over year, while free cash flow reached $1.8 billion and buybacks have been aggressive. At about 10 times forward earnings, the author argues PayPal does not need rapid growth; if income grows about 4% a year and the share count shrinks about 8% annually, EPS could still rise at a double-digit pace. The author says he would reconsider if the branded checkout business keeps losing ground.
- Coca-Cola, Visa and Mastercard Hit Records as Investors Rotate Out of Chip Stocks
Coca-Cola, Visa and Mastercard are among the stocks reaching record highs as investors look beyond the AI trade. The article suggests earnings could help broaden the rally.
- Mastercard brings stablecoin balances into traditional banking and card payments
Mastercard has launched Global Money Platform, its first major integration with BVNK since acquiring the stablecoin infrastructure company in August. The platform lets businesses hold and convert fiat currencies and stablecoins, offer stablecoin-linked cards, and pay recipients' local bank accounts directly from stablecoin balances. It connects to Mastercard Move, which can route payments to more than 17 billion destinations, and to Mastercard's merchant network so customers can spend stablecoin balances with payment cards. Nuvei and Marqeta are among the first partners. The move extends Mastercard's role into stablecoin infrastructure and puts it in closer competition with Visa, which launched a similar platform in July. A Standard Chartered study cited in the article points to growing stablecoin transaction activity, even though supplies of USDt and USDC have been relatively flat this year.
- PayPal vs . SoFi Technologies : Which Financial Stock Is a Better Buy in 2026 ?
The article compares PayPal (PYPL), a global payments network with 439 million active accounts across nearly 200 markets, with SoFi Technologies (SOFI), a digital bank serving over 15 million members. One offers stable cash flow, the other faster growth. In fiscal 2025, PayPal reported revenue of nearly $33.2 billion, up roughly 4.3%, and net income of $5.2 billion, a net margin of about 15.8%; SoFi reported revenue of roughly $4.8 billion, up about 28.8%, and net income of nearly $481.3 million. PayPal's free cash flow was nearly $5.6 billion, while SoFi's was negative at nearly $4 billion, reflecting its lending and technology spending. The article outlines risks for both, including cyberattacks and regulation for PayPal, and interest rate sensitivity and trade secret allegations from Citizens Bank for SoFi, and notes PayPal trades at lower forward P/E and P/S ratios than SoFi.
- SoFi Just Made a Big Move Into Blockchain Payments. Here's What Investors Need to Know.
SoFi Technologies has started using its own digital dollar, SoFiUSD, to settle transactions across its Mastercard card program, a step that could open growth beyond banking and lending. The Mastercard tie-up lets SoFi test blockchain settlement through an established global network. Its core business is already growing, with third-quarter 2026 revenue of $1.4 billion, up 44%, and membership up 35% to 17.1 million. The article notes that processing more transactions does not automatically mean more profit, so investors should watch for wider usage, measurable savings and profitability. For now, blockchain payments are a potential source of future growth rather than an established earnings driver.
- The 'stablecoin sandwich': Why speeding up payments isn't so simple, according to Mastercard
Mastercard says stablecoins could make payments faster and more efficient, but realizing their full potential requires further development of supporting infrastructure. Matthew Driver, executive vice president of services for Asia Pacific at Mastercard, said stablecoins could suit certain remittance corridors and less commonly traded currency pairs. He warned against a “stablecoin sandwich,” with a slow on-ramp, a fast transaction in the middle and a slow off-ramp, which would not necessarily speed up payments. Connecting real-time payment systems to stablecoin exchanges at both ends could help, but market participants also need to be able to use the technology effectively. In Singapore, where retail payments are already highly efficient, stablecoins may have fewer consumer applications than corporate payments, where smart contracts are one potential use case.
Related markets
Latest news
- Novo raises full-year outlook as Wegovy pill sales impress
Danish weight-loss drug maker Novo reported third-quarter results ahead of expectations early Wednesday, as sales of its Wegovy pill far exceeded estimates after a turbulent year in which it fell behind rival Eli Lilly. Third-quarter sales reached 79.2 billion Danish kroner ($11.9 billion), up 4% year on year and above FactSet estimates of 73.6 billion kroner. Adjusted operating profit (EBIT) came in at 31.7 billion kroner, versus an expected 28.6 billion kroner. The company now expects adjusted revenue and operating profit growth of between negative 2% and 2% at constant exchange rates, up from its previous outlook of negative 6% to flat.
- Vietnam proposes three directions to boost APEC cooperation
At the 37th APEC Joint Ministerial Meeting of Foreign and Economic Ministers, held online on November 3, Vietnamese Foreign Minister Lê Hoài Trung proposed three directions for the Asia-Pacific region. These are building a creative and productive region through responsible, effective use of AI and digital technology; an open and connected region that eases supply-chain bottlenecks; and a self-reliant, dynamic region that cooperates on food and energy security and strengthens resilience to emerging risks. The meeting, attended by representatives of 21 member economies, reviewed five years of implementing the APEC 2040 Vision and prepared for the APEC 33 Leaders' Meeting in Shenzhen, China. Several members expressed hopes for Vietnam's APEC 2027 host year.
- After repeated margin-call sales, DIG chairman buys 5 million shares
DIC Corp Chairman Nguyễn Hùng Cường has completed the purchase of 5 million DIG shares between 12/10/2026 and 02/11/2026, raising his ownership from 3.41% to 4% of charter capital. The move follows a margin-call forced sale of more than 5.2 million DIG shares by Mr. Cường on 31/7/2026, and several family members also faced margin-call sales. Vũ Thị Thu Hương, wife of DIC Corp CEO Nguyễn Quang Tín, has also registered to buy 1 million more shares from 15/10/2026 to 13/11/2026. In business results, Q3/2026 revenue fell 43.2% to VND 761.36 billion and after-tax profit dropped 64.2% to VND 69.16 billion; nine-month pre-tax profit of VND 241.85 billion reached 40.3% of the full-year target. DIG shares fell 60.6% from VND 24,600 (17/10/2025) to VND 9,500 (04/11/2026), now trading below the MA200 and losing the VND 10,000 level.
- Midterm Election Impact: SPCX, ASTS, RKLB Stocks Sink As Musk’s Political Ties Put Tesla-SpaceX Merger Under Fresh Scrutiny
SPCX, ASTS and RKLB, along with several other space stocks, fell between 2% and 6% overnight as fears of political backlash against Elon Musk after Democratic midterm gains spread across the sector. Market observers said heightened scrutiny of government contracts and possible hearings could complicate a Tesla–SpaceX merger, though it would not automatically block the deal. Musk contributed $446 million during the 2026 midterm cycle, mostly to Republican-aligned groups. Investor George Noble urged adding to his bearish bets on SPCX and TSLA, while Morgan Stanley said SPCX trades cheaper than the S&P 500 for fiscal year 2028, at 17.6 times estimated earnings versus the index's 17.7 times.
- Vietnam's economy stays stable and positive amid an unpredictable global backdrop
Finance Minister Ngô Văn Tuấn told the regular Government meeting that Vietnam's macroeconomy remains stable and socio-economic conditions continued to improve in October, even as global conditions stay volatile, notably the Middle East conflict that pushed world oil prices up 3-4.2% in October from September. The IMF raised its 2026 growth forecast for Vietnam from 7.1% to 8.4%, and R&I included Vietnam in its investment-grade category for the first time. Industrial production rose 12.4% over 10 months, and exports reached US$499.24 billion (up 27.5%), with total trade over US$1,010 billion, passing US$1,000 billion for the first time. Registered FDI reached US$54.85 billion, up 74%. The report also flags difficulties, including no breakthrough in production and business activity, and pressure on financial, monetary and credit markets.
- Banks' workforce diverges: layoffs and an operating-model overhaul
Separate financial statements for the first nine months of 2026 from 27 banks show divergent workforce trends: 14 banks cut about 7,340 staff from end-2025, while 13 added about 3,921. Sacombank was the focal point of the cuts, with 12,553 staff at 30 September 2026, down 4,263, amid restructuring and a name change from June. KienlongBank shed 1,078 staff in a single quarter, and Eximbank fell by 783 from the start of the year. Among state-owned banks, BIDV and VietinBank reduced headcount yet continued recruiting, while BIDV's staff costs rose 5.6%. On the other side, ABBank added 247 staff and ACB added 236.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.