11 Best Digital Payments Stocks to Buy According to Analysts

7. Shopify Inc. (NASDAQ:SHOP)

Analysts’ Upside Potential as of April 9: 51.39%

Shopify Inc. (NASDAQ:SHOP) is ranked seventh on our list of the Best Digital Money Stocks. Shopify Payments is the payment platform operated by the Canadian e-commerce company. This makes it possible for Shopify store owners to accept payments online without relying on third-party services.

The firm’s moat is strengthened by its extensive platform and loyal customer base. Its size allows for aggressive investment in product development, which strengthens its lead in functionality and tooling. Its 8,000+ app ecosystem, combined with a rapidly growing B2B market (with six straight quarters of 100%+ GMV growth), generates a network effect that keeps merchants locked in. Up to 90% of customers stick with the company because switching is expensive, especially for larger retailers who depend on its payment, inventory, and logistical services. Shopify Payments currently accounts for 64% of total GMV, with Shop Pay continuing to beat competitors in terms of conversion. Even as competition heats up, Shopify Inc. (NASDAQ:SHOP) becomes increasingly tough to displace due to these embedded technologies.

The company’s financial performance remains strong. Q4 of 2024 sales climbed 31% YOY, primarily due to a 33% growth in its Merchant Solutions division, which now accounts for 76% of overall revenue. Gross Payments Volume soared 35% to $61 billion, showing the company’s growing importance in transaction processing. Shopify Inc. (NASDAQ:SHOP)’s Subscription Solutions segment, which generates high-margin recurring income, jumped 27% year on year and currently accounts for 24% of overall revenue. Although the segment’s gross margin fell slightly to 79.9% due to mixed and short-term challenges from the transition to three-month free trials, this strategic decision is projected to boost merchant stickiness and long-term GMV capture. The Monthly Recurring Revenue shot up by 24% in Q4, with broad-based growth across basic, Plus, and offline levels, highlighting the strength of its client base and revenue sources.