April 14, 2024

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Technology and Age

Which Payment Technology Stock is a Better Investment? By StockNews


© Reuters. Evertec vs. Global Payments: Which Payment Technology Stock is a Better Investment?

With increasing digitization in almost every sector, the need for digital payment is also rising. Consequently, the digital payment services industry is expected to register significant growth in the near term. We think payment technology stocks EVERTEC (EVTC) and Global Payments (NYSE:) should benefit from the solid industry prospects. But which of these stocks is a better buy now? Read more to find out.EVERTEC, Inc. (EVTC) in San Juan, Puerto Rico, is in the transaction processing business. The company operates through four segments: Payment Services – Puerto Rico & Caribbean; Payment Services – Latin America; Merchant Acquiring; and Business Solutions. In comparison, Atlanta, Ga.-headquartered Global Payments Inc. (GPN) provides payment technology and software solutions for cards, electronic, check, and digital-based payments. The company operates through three segments: Merchant Solutions; Issuer Solutions; and Business and Consumer Solutions.

The COVID-19 pandemic has led to a massive surge in e-commerce sales, thereby boosting the need for payment processing solutions. Furthermore, with growing consumer demand for contactless delivery and payments, the demand for payment technology solutions is increasing significantly. The payment processing solutions market is expected to register an approximately 10.2% CAGR during the period 2021 – 2026. Given the accelerated adoption of digital payment methods, both EVTC and GPN should benefit.

EVTC has gained 20% in price over the past six months, while GPN has shed 23.9% over the period. Also, EVTC’s 15.8% gains year-to-date compare with GPN’s 23.9% slump. In terms of past year’s performance, EVTC is the clear winner with 33.3% gains versus GPN’s 6.7%.

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