April 14, 2024


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%.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.