Block Inc (SQ)

[NewMoney]

3 Payment Processing Stocks to Buy Now

The credit card behemoths are one way to invest in the payment industry, but new players that are breaking the mold are offering investors a chance at far better returns.


There's nothing wrong with going with the biggest players. The thing is, failing to look outside the big three could be a costly error for investors looking to rack up significant gains. Innovation is the name of the game, and companies determined to bring payments into the modern age have much to offer. Here's a look at three such innovators: PayPal Holdings, Inc. (NASDAQ:PYPL), Square, Inc. (NYSE:SQ), and MercadoLibre, Inc. (NASDAQ:MELI).

Be there or be square
Beginning with the introduction of a simple smartphone-mounted mobile card reader, Square has become the company that makes it easy for businesses to accept payments anytime, anywhere. While its payments segment still accounts for the bulk of revenue, the company has expanded into a variety of small-business services including employee management and payroll, customer relationship management tools, and working-capital loans. 
Providing these payment and small-business solutions has been lucrative: In its most recent quarter, Square grew its revenue 26% year over year to $552 million, and gross payment volumes topped $16.4 billion, up 32% over the prior-year quarter. While the company is "squarely" in growth mode, it has yet to become profitable -- though its loss of $16 million was a big improvement from the $27 million loss in the prior-year quarter. 

https://www.fool.com/investing/2017/08/27/3-payment-processing-stocks-to-buy-now.aspx