The rapid shift from cash to digital transactions, driven by a push toward convenience and security, has led to meteoric growth in mobile payments. The space encompasses a broad spectrum of innovations, including payment infrastructure and software services, as well as virtual wallets and smartcards. As the adoption of digital payment becomes commonplace, the mobile payments market is anticipated to experience meteoric growth in the long term.
At this stage, we recommend five mobile payments stocks to buy and hold for the long term to strengthen your portfolio. These are: Affirm Holdings Inc. AFRM, American Express Co. AXP, PayPal Holdings Inc. PYPL, Visa Inc. V and JPMorgan Chase & Co. JPM.
Mobile Payments Space Provides a Long-Term Opportunity
A higher Internet penetration rate and increased usage of smartphones contribute to the increased uptake of digital payments. Whether paying for lunch, groceries, or high-end products and services, mobile payments are transforming everyday transactions. In light of the prevailing scenario, it has become inevitable to build an enhanced contactless payments suite or upgrade the existing ones.
Owing to the long-term benefits that such investments provide, the industry players have come up with diversified contactless payment options such as mobile wallets, biometrics and QR codes. Such initiatives will enable the players to solidify their presence in the global digital payments market, boost their customer base and diversify income streams.
This convergence of digital solutions and physical transactions has reshaped the e-commerce and online purchase landscape. Enhanced by 5G, contactless payments are becoming the norm, allowing companies in this space to offer faster, more secure transactions.
This high-growth segment capitalizes on a future where the digital wallet and mobile-first systems dominate. Companies leading this change in payment processing and infrastructure are set to benefit immensely from the ongoing global shift to cashless solutions.
5 Mobile Payments Stocks to Buy for Long-Term Gains
These five stocks have strong growth potential for 2025. The stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks currently carries ether a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Zacks Investment Research
Image Source: Zacks Investment Research
Affirm Holdings Inc.
Zacks Rank #1 Affirm Holdings’ fiscal second-quarter 2025 earnings beat consensus estimates by a huge margin. AFRM has achieved strong revenue growth through diverse income streams, including merchant network fees, interest from loans and virtual card revenues. Growing active merchant numbers, improving gross merchandise value and average balance of loans are driving merchant network revenues and interest income.
Key partnerships including those with Apple Pay and Hotels.com play a vital role in its expansion. AFRM has officially expanded to the United Kingdom, through a partnership with Alternative Airlines. Tapping into industries like travel, hospitality, and technology bodes well. AFRM’s shares are expected to offer substantial upside potential going forward.
Affirm Holdings has an expected revenue and earnings growth rate of 36.9% and 89.2%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for the current-year earnings has improved more than 100% in the last 30 days. AFRM has an estimated long-term (3-5 years) EPS growth rate of 36.2%.
American Express Co.
Zacks Rank #2 American Express’ growth initiatives, like launching new products, reaching new agreements and forging alliances, are boosting its revenues. Consumer spending on travel and entertainment, which carries higher margins for AXP, is advancing well.
American Express’ focus on Millennials and Gen-Z consumers, who exhibit strong dining preferences, will position the company for long-term growth. AXP’s solid cash-generation abilities enable the pursuit of business investments, share buybacks and dividend payments.
American Express has an expected revenue and earnings growth rate of 8.7% and 14.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% in the last 60 days. AXP has an estimated long-term EPS growth rate of 13.6%.
PayPal Holdings Inc.
Zacks Rank #2 PayPal Holdings is benefiting from robust growth in total payment volume. Strengthening customer engagement on PYPL’s platform is a major positive. Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding total active accounts growth.
The solid momentum of core peer-to-peer and PayPal Checkout experiences is a tailwind. Well-performing merchant services are also a positive. Strengthening presence in both the United States and international markets is contributing well. Accelerating transaction revenues of PYPL are likely to continue driving the top line.
PayPal Holdings has an expected revenue and earnings growth rate of 3.7% and 8%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 2.2% in the last 30 days. PYPL has an estimated long-term EPS growth rate of 11.7%.
Visa Inc.
Zacks Rank #2 Visa’s fiscal 2025 first-quarter earnings beat estimates by 3.4%. V’s strategic acquisitions and alliances are fostering long-term growth and consistently driving revenues. It expects net revenues to grow in low double-digits in fiscal 2025. V is fueled by continued increases in payments, cross-border volumes and sustained investments in technology, and is witnessing significant profit growth.
The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. With fraud cases on the rise and artificial intelligence (AI) adoption increasing, V’s services are in high demand. V has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.
Visa has invested $3.5 billion in rebuilding its data platform. V’s technology helps prevent $40 billion in fraud attempts annually. Through strategic diversification, innovation, and AI-driven security, the company is well-positioned for long-term growth.
Visa has an expected revenue and earnings growth rate of 10.2% and 12.4%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.7% in the last 60 days. V has an estimated long-term EPS growth rate of 13.4%.
JPMorgan Chase & Co.
Zacks Rank #1 JPMorgan Chase is expected to benefit from strategic buyouts, branch openings and decent loan demand. Though the Fed has started lowering interest rates and signaled more cuts this year, relatively high rates are expected to support JPM’s NII (net interest income) and net yield on interest-earning assets as funding and deposit costs gradually stabilize.
JPM is expanding its footprint in new regions despite the proliferation of mobile and online banking options. In 2024, JPM announced plans to open more than 500 new branches by 2027, of which 150 were built last year. This initiative will solidify its position as the bank with the largest branch network and a presence in all 48 states in the United States.
JPM remains focused on acquiring the industry's best deposit franchise and strengthening its loan portfolio. Despite a challenging operating environment, deposits and loan balances have remained strong over the past several years. As of Dec. 31, 2024, JPM’s loans-to-deposit ratio was 56%. As interest rates fall gradually, demand for consumer loans (specifically credit cards) and wholesale loans is expected to improve.
JPMorgan Chase has an expected revenue and earnings growth rate of -2.8% and -8.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% in the last 30 days. JPM has an estimated long-term EPS growth rate of 5.2%.
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