Better Buy: PayPal or Visa?
Credit card giant Visa (NYSE: V) is no longer a simple payments network. It has emerged as a huge influence in financial technology, or fintech. Fintech itself has emerged as an important trend in technology, and the pandemic has accelerated its widespread usage. As the original digital payments company, PayPal Holdings (NASDAQ: PYPL) holds the leading edge in fintech capabilities, but it's nowhere near as large as Visa. Which of these fintech powerhouses is the better buy today?
Visa is the largest payment processing network in the world. It facilitated more than $13 trillion in 230 billion transactions in 2021 and works through more than 100 million merchants worldwide. It powers 3.8 billion cards.
Because Visa has such a wide reach, its performance usually follows that of the economy. When there are dips and spending pullbacks, investors will see that mirrored in Visa's operating results. At the beginning of the pandemic, there were double-digit revenue declines. However, shoppers always need the basics, giving Visa some kind of resilience even during tough times. It bounced back quickly and has been posting strong rebound numbers.
Source Fool.com
