In this article, we will discuss: 7 Best Digital Payments Stocks to Invest In Now.
Digital payment stocks include fintech businesses, digital wallet providers, and large transaction processors.
According to J.P. Morgan, the payments industry is changing due to the rapid evolution of business-to-business payment expectations, which are fueled by consumer payment trends. As per a September 15, 2020, research titled “Navigating change in a complex digital payments environment,” fintechs, rising technologies, and new electronic payment methods are making the payments landscape dynamic and complex.
J.P. Morgan stated that federal government agencies and organizations are attempting to implement more flexible payment methods. They are striking a balance between innovation and the stability and security needed in a highly regulated setting. However, selecting the appropriate payment options and technologies, choosing partners, and evaluating technology in light of customer preferences and behaviors are among the main challenges.
The firm identified a number of factors that would influence B2B payments in the future. In both B2C and B2B markets, digitization is raising expectations for quicker, real-time payments. Faster payments enable payers to more precisely manage outgoing payments, which can improve cash flow and liquidity management, particularly as interest rates rise. Banks utilize modern technologies such as blockchain, machine learning, and robotics to enhance payment experiences, gain insights into client preferences, streamline compliance, and expedite settlement.
With that said, here are the 7 Best Digital Payments Stocks to Invest In Now.
Methodology:
We sifted through the online rankings to form an initial list of the 20 Best Digital Payments Stocks. From the resultant dataset, we chose 7 Digital Payments stocks with the highest number of hedge fund holders for each stock using Insider Monkey’s database of hedge funds as of Q3 2025. We have also considered the analysts’ upside potential of over 15%, as of December 20. Finally, we ranked these stocks in ascending order based on hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
7. Klarna Group plc (NYSE:KLAR)
Number of Hedge Fund Holders: 50
Analysts’ Upside Potential as of December 20: 55.00%
Klarna Group plc (NYSE:KLAR) is among the Best Digital Money Stocks.
On December 19, 2025, Fortune revealed that Klarna Group plc (NYSE:KLAR) and cryptocurrency exchange Coinbase have partnered. According to cryptocurrency reporter Ben Weiss, the agreement is to take institutional investors’ funds denominated in stablecoins. The buy now, pay later company, which had traditionally avoided involvement in cryptocurrency-related matters, is making a change with this announcement.
The main focus of Klarna Group plc (NYSE:KLAR)’s business is providing customers with zero-interest loans for purchases, also referred to as “buy now, pay later.” The Swedish company generates income through a banking division that takes deposits and issues bonds, and it mostly earns revenue by charging merchants fees for providing the service. Under the Coinbase agreement, institutional investors will be able to give Klarna funds in stablecoins, which are cryptocurrencies tied to assets such as the US dollar.
According to Klarna Group plc (NYSE:KLAR)’s chief financial officer, Niclas Neglén, stablecoins give the business access to a new group of institutional investors.
The Coinbase collaboration comes after several recent cryptocurrency projects. In September, the firm went public. It introduced its own stablecoin, KlarnaUSD, on a new blockchain in late November with support from crypto venture capital businesses Paradigm and Stripe. About two weeks later, Klarna Group plc (NYSE:KLAR) said that it was working with crypto wallet company Privy, which is owned by Stripe, on future crypto products for consumers.
Klarna Group plc (NYSE:KLAR)’s measures come as fintech companies worldwide explore stablecoins. Nonetheless, the stock is down by 30.75% YTD.
