In this article, we will look at some of the best payment processing stocks offering attractive upside potential for investors.
On May 3, the Financial Times reported that private equity firm Francisco Partners is in talks to acquire Moneris, a payment processing company jointly owned by Royal Bank of Canada and Bank of Montreal. This proposed deal comes at a time when the payments sector is still undergoing substantial changes, driven by the rise in digital transactions and growing competition from financial technology companies.
In recent years, there has been pressure on traditional financial institutions to rethink their positions in merchant payment processing, as fintech companies have expanded their presence by offering faster digital payment solutions. This shift has contributed to a broader trend of banks divesting payment assets, while private equity investors and specialized payments firms are now looking for ways to strengthen their position in the market.
The payments sector remains an essential part of the financial services ecosystem as businesses and consumers depend more and more on electronic transactions. Moneris has developed into one of the largest merchant payment service providers in Canada, processing over 5 billion transactions per year. Francisco Partners is reportedly considering the acquisition as banks continue to focus on their core businesses while streamlining operations. With that background, let’s explore our 10 Best Payment Processing Stocks to Buy Now.
Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed payment processing companies with market capitalizations above $2 billion. Also, we only shortlisted stocks with at least 30% upside potential, according to consensus, as of the June 17 close. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
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10. Remitly Global Inc. (NASDAQ:RELY)
Remitly Global Inc. (NASDAQ:RELY) is one of the 10 best payment processing stocks to buy now. The company’s expansions into new geographies, through strategic integrations, support a favorable stance around the stock. On May 27, Remitly Global Inc. (NASDAQ:RELY) announced the integration of Bre-B, Colombia’s national instant payment system backed by Banco de la República, into its remittance network.
With just the recipient’s phone number, email address, or national ID connected to a partner bank account or digital wallet, customers can now send money to Colombia instantly and around the clock. In just 6 months, Bre-B has handled over 600 million transactions and accumulated over 34 million registered users, according to Banco de la República.
Within 6 weeks of its inception, the remittance platform’s Bre-B transaction volume tripled. Sending money is an act of care, according to Remitly Vice President Nick Moiseff, and this integration gives senders and recipients assurance that money will arrive promptly, consistently, and transparently.
The Bre-B system has also expanded the company’s current payout network in Colombia, which already consists of cash pickup services, conventional bank deposits, and mobile wallets like Nequi, Daviplata, and Bancolombia A La Mano.
Remitly Global Inc. (NASDAQ:RELY) is a cross-border payment company that delivers digital financial services, covering markets across Canada, the U.S., and internationally. It facilitates international money transfers and additional financial services through its mobile application and web platform.
9. WEX Inc. (NYSE:WEX)
WEX Inc. (NYSE:WEX) is one of the 10 best payment processing stocks to buy now. With a moderately bullish consensus sentiment, the stock currently has a 1-year price target of $182.29, resulting in an upside potential of over 34%.
On June 12, Deutsche Bank maintained a Hold rating on WEX Inc. (NYSE:WEX) while decreasing the target price from $180 to $160 following a meeting with the company’s management. Despite the downward adjustment to the price target, the estimate still implies more than 18% upside potential at the current level.
The firm noted that the company’s shares experienced a sell-off in recent trading sessions, following news that Amazon.com Inc. (NASDAQ:AMZN) intends to expand its less-than-truckload logistics offerings. However, the firm noted that WEX management does not consider this development a concern for now.
Back in mid-May, WEX Inc. (NYSE:WEX) announced a new share repurchase program approved by its Board of Directors. Under this plan, WEX may repurchase up to $1 billion worth of its common stock, in addition to paying any related transaction costs and excise taxes.
WEX Inc. (NYSE:WEX) is a commerce platform that offers payment solutions, transaction processing, and analytics through its Mobility segment, alongside embedded payments and accounts payable automation through its Corporate Payments segment. It also offers a SaaS platform for healthcare benefits, COBRA accounts, health savings accounts, and full-service benefit enrolment solutions.
8. Global Payments Inc. (NYSE:GPN)
Recent analyst ratings make Global Payments Inc. (NYSE:GPN) one of the 10 best payment processing stocks to buy now. On June 11, Bryan Bergin from TD Cowen decreased the price target from $86 to $74 on Global Payments Inc. (NYSE:GPN), resulting in a revised upside potential of almost 19%. The analyst reiterated his Hold rating on the stock.
Bergin mentioned that TD Cowen has revised its model to reflect a more cautious outlook with regard to previously disclosed headwinds, which now appear more likely to occur. He pointed out that despite this cautious short-term adjustment, the company’s projections about an expected increase in the second half of 2026 have not changed.
Earlier, on June 3, Susquehanna also reaffirmed its Positive rating on Global Payments Inc. (NYSE:GPN). The firm reduced the price target from $119 to $111, which translates into a revised upside potential of more than 77%.
After a closer look at public transcripts and travel-related assumptions, the firm changed its estimates. Susquehanna toned down its projections by reducing its growth assumptions to 3.2% for the second quarter, 5% for the second half, and 4% for the entire year 2026.
Global Payments Inc. (NYSE:GPN) provides payment technology and software solutions for card, digital, and check payments. It offers authorization, consolidated billing and reporting services, settlement and funding, customer support, and chargeback resolution solutions. The company is also engaged in terminal rental, customer support, chargeback resolution, sales and deployment, and payment security services.
7. Toast Inc. (NYSE:TOST)
Toast Inc. (NYSE:TOST) is one of the 10 best payment processing stocks to buy now.
On June 11, Billy Fitzsimmons from Piper Sandler set a price target of $32 while assuming an Overweight rating on Toast Inc. (NYSE:TOST). The estimate leads to a target price of almost 29% at the prevailing level.
The analyst believes that there is “room left to run” for the company within its primary restaurant markets. Fitzsimmons also added that Toast’s strategy of entering new markets is likely to offer support to its long-term growth.
Back in mid-May, Toast Inc. (NYSE:TOST) announced that its enterprise technology suite would be implemented across Hungry Howie’s entire footprint of approximately 500 restaurant locations. Hungry Howie’s represents the second enterprise pizza brand to select the technology platform this year, joining a variety of other pizza customers.
The platform is designed to support high-volume operations, while its partner ecosystem, which features integration partners such as Cartwheel and Stream, enables operators to build a customized technological infrastructure aimed at ensuring smooth business operations and maintaining staff and guest satisfaction.
Toast Inc. (NYSE:TOST) operates within the restaurant industry, providing SaaS through its cloud-based digital platform. It covers various functions of a restaurant, such as vendor management, online orders, kitchen display system, payroll management, supply chain, and more.
6. StoneCo Ltd. (NASDAQ:STNE)
StoneCo Ltd. (NASDAQ:STNE) is one of the 10 best payment processing stocks to buy now. The stock has been getting mixed ratings from analysts in recent weeks. Despite that, it offers more than 38% upside potential to investors, based on its 1-year median target price. The stock also carries a moderately bullish consensus sentiment, with 5 of the 8 analysts who provided coverage assigning Buy ratings.
On May 29, UBS upheld its Buy rating for the stock, while cutting down the firm’s price target from $19 to $17. Despite the downward revision, UBS’s projection offers 51% upside potential at the prevailing level.
In mid-May, Citi lowered the rating on StoneCo Ltd. (NASDAQ:STNE) from Buy to Neutral and decreased the price target from $18 to $11. The firm also placed a downside 90-day catalyst watch on the stock.
The firm noted that the recent price adjustments implemented by StoneCo will result in a curtailment in volumes. Furthermore, Citi expects intensifying competitive pressures to cause a weakness in the company’s take rates. The firm believes current trends in the payments sector highlight the vulnerability of independent merchant acquiring business models.
StoneCo Ltd. (NASDAQ:STNE) sells financial technology and software solutions to merchants and integrated partners across in-store, online, and mobile channels in Brazil. The company provides financial services, payment solutions for electronic payments and alternative payment methods, digital products, and tap-on-phone solutions. The company serves offline, online, and omni-channel sales customers.
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