Better Buy: PayPal Holdings, Inc. vs. Discover

The payments industry is quickly evolving, and while the credit card dynasties aren't going away anytime soon, there is competition from a new breed of payment companies. On one side of the ring is Discover Financial Services (NYSE: DFS), one of the big four credit card companies that have dominated the industry for decades. Representing the wave of the future is PayPal Holdings, Inc. (NASDAQ: PYPL), an online payment processor that allows users to make and accept payments and send money online.

Each path has its strengths and weaknesses, but for investors looking to invest new money now, which company has better future prospects?

Which is a more profitable direction for investors? The old dynasty or the new paradigm? Image source: Getty Images.

Source: Fool.com