The company generates a strong EBITDA profit and is even profitable on a net income basis. The company grew revenues 13% year-over-year, which topped expectations. However, its Q2 earnings were quite good. Paysafe has built a large first-mover advantage collecting a ton of online accounts and building a broad merchant network in fast-growing parts of the digital economy. But that’s not where Paysafe is concentrated. It’s understandable why the market might be fretting about those sorts of businesses. It’s one thing to be doing mundane payments for grocery stores, department stores, or gas stations. Look at the sorts of partnerships Paysafe has with high-growth sectors such as online gaming, crypto, and video streaming. Its online wallets are closer to FinTech than being a legacy solution. However, it’s unfair to lump Paysafe in this group.
It’s no coincidence that its own shares really tanked as peers such as Global Payments have plummeted. PSFE stock has gotten caught in the payments crossfire. Paysafe: Comfortably Straddling The Payments Divide The actual evidence that alternative technologies are taking much market share remains limited, however.Ĭrypto in particular seems like a red herring at this point the transaction fees on networks such as Ethereum (CCC: ETH-USD) are far too high to serve as an alternative to credit and debit cards for routine purchases. Legacy payments names have been in freefall lately due to this concern. If it is, that’d reshape the whole payments ecosystem. Traders are looking at the massive upwards moves in both cryptocurrencies and FinTech payments players like Square (NYSE: SQ) and wondering if the party is over for credit cards. Their stocks have also gone to the stratosphere as total transaction volume has surged.Īll that is now in question, however. That’s where firms like Global Payments and Fiserv enter the mix. It needs firms that manage the nitty gritty of handling credit and debit card payments. Visa doesn’t exist on an island, however. V stock is up 800% over the past 10 years, for example.ħ Superstocks That Have Returned Over 10,000% in 30 Years For the past decade or so, it’s been an easy trade to own Visa and Mastercard (NYSE: MA) as the ultimate winners in the “war on cash.” As the world goes from cash to plastic, it’s made fortunes for the credit card companies. The meta-narrative driving payments stocks right now centers around disruption. However, despite all the volatility, the firm’s prospects actually remain bright. Given the one-two punch of the SPAC exodus and the payments panic, PSFE stock has collapsed. InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Weak earnings results from the likes of Visa (NYSE: V) have caused tremors, and the pain has been especially sharp in the legacy processing names such as Global Payments (NYSE: GPN) and Fiserv (NASDAQ: FISV). In recent weeks, the payments sector as a group has also tanked. A big part of that is from the deflating of the SPAC bubble. Now, though, shares are down by nearly two-thirds.
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