Mobile payments refer to financial transactions made through smartphones, tablets or wearable devices, eliminating the need for cash or physical cards. These transactions can occur via digital wallets like Apple Pay, Google Pay and PayPal or through contactless payments powered by Near Field Communication (NFC) technology. Mobile payments also include peer-to-peer (P2P) transfers, QR code-based payments and in-app purchases. With consumers shifting toward a cashless economy, businesses and financial institutions are rapidly adopting mobile payment solutions to enhance convenience, security and transaction speed.
Companies like Visa Inc. V are driving technological advancements to improve security and fraud prevention. With global adoption surging, the mobile payment industry is poised for significant growth, driven by fintech innovation and expanding digital infrastructure. Firms such as Affirm Holdings, Inc. AFRM, American Express Company AXP and PayPal Holdings, Inc. PYPL are leveraging product innovation and user-friendly solutions to boost transaction volume.
Seamless integration with banking systems, financial institutions and e-commerce platforms has broadened the reach of mobile payments. The industry is growing rapidly, accelerated by the pandemic and the resultant rising demand for contactless payment solutions. According to Grand View Research, in 2024, the global market was valued at approximately $88.5 billion and is estimated to witness a compound annual growth rate (CAGR) of 38% in the 2025-2030 period. This surge is likely to be fueled by the increasing penetration of smartphones, the rise of e-commerce and the growing demand for contactless payment solutions.
Leading mobile payment companies like AFRM, V, AXP, and PYPL present compelling opportunities for investors, given their commitment to innovation and market expansion. As mobile payment technologies evolve, they are set to reshape the financial industry, providing both lucrative investment prospects and enhanced consumer experiences. Our Mobile Payments Screen helps identify stocks with high growth potential in this dynamic sector.
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Affirm is a prominent player in the mobile payments industry, specializing in "Buy Now, Pay Later" (BNPL) services that offer consumers flexible payment options at the point of sale. Founded in 2012, it offers transparent and user-friendly financial products, which are attracting more and more consumers. Affirm enables consumers to split purchases into biweekly or monthly payments, both online and in-store, without hidden fees or compounding interest.
AFRM’s mobile payments products help merchants drive sales, average order value and repurchase rates. As such, more and more merchants continue to join its growing network. As of Dec. 31, 2024, Affirm reported having 21 million active consumers and 337,000 active merchants. In September 2024, the company integrated with Apple Pay, enabling users to select Affirm as a payment option during checkout on iPhones and iPads. Earlier, AFRM teamed up with Google Pay to offer flexible payment options to Android users as well.
Following its tremendous success in North America, Affirm has penetrated the massive market in the United Kingdom. It is likely to further expand in the growing mobile payments space in the rest of Europe in the near future. Due to its key partnerships with major merchants and platforms, expanding into new markets is easier for the company. Affirm currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Visa has solidified its position as a global leader in mobile payments, offering innovative solutions that ensure secure and seamless transactions for consumers and businesses. The Visa Mobile app simplifies online payments by allowing users to enter their mobile phone numbers at checkout and confirm transactions within the app, enhancing security and streamlining the payment process.
Visa’s Tap to Phone technology turns NFC-enabled smartphones into contactless payment acceptance devices. Merchants can simply download an app to start accepting payments without additional hardware, making digital transactions more accessible, particularly for small businesses. Strategic partnerships further strengthen Visa’s competitive edge in the rapidly evolving digital payment landscape.
In January 2025, Visa partnered with Elon Musk’s X (formerly Twitter) to introduce direct payment solutions, supporting X’s vision of becoming an "everything app." This collaboration allows users to fund their X Money accounts, link debit cards and transfer funds to bank accounts, demonstrating Visa’s commitment to integrating its services into diverse digital ecosystems. Visa currently holds a Zacks Rank #2 (Buy).
American Express prioritizes mobile wallets to deliver a secure, touch-free payment experience. Designed for convenience, speed and multi-layered security, these solutions offer cardholders an effortless way to manage their accounts. The American Express mobile app provides a centralized platform for tracking spending, managing rewards and seamlessly adding cards to digital wallets.
AmEx has launched new mobile payment products and intensified its marketing efforts toward Gen Z and Millennials. In a strategic expansion move, the company recently partnered with Alipay, China’s leading digital payment platform. This partnership enables global American Express cardholders to link their cards to Alipay, facilitating transactions at millions of merchants across the country. The collaboration will enhance convenience for international travelers while helping local businesses attract a broader customer base.
To combat rising fraud cases, American Express has implemented multiple security measures. One of them is vPayment — a virtual payment solution that assigns a single-use or multi-use Virtual Account Number for each transaction. This Zacks #2 company also provides a secure payment gateway that encrypts card details and conducts fraud checks before processing payments, reinforcing its digital payment security infrastructure.
PayPal is one of the most widely used mobile payment apps among U.S. adults, with 434 million active accounts across approximately 200 markets as of Dec. 31, 2024. Its vast payment data helps merchants track customer behavior and engagement, enhancing business insights.
PayPal owns Venmo, a leading mobile payment service that continues to expand its market presence. Venmo users can make payments at over two million PayPal-affiliated merchants across the United States. The platform leverages AI to personalize experiences for both consumers and businesses. Additionally, its partnership with MasterCard supports Venmo’s growing adoption, while PayPal’s strategic alliance with Visa across the United States, Europe and Asia-Pacific enhances consumer choice, point-of-sale acceptance and instant withdrawals.
PayPal’s "Tap to Pay" feature utilizes NFC technology, enabling merchants to accept contactless payments directly on their smartphones without additional hardware. This Zacks Rank #2 company also offers robust mobile e-commerce solutions, allowing customers to complete transactions quickly and securely through customizable checkout experiences. Furthermore, PayPal has a vast global BNPL portfolio, which is widely used for purchasing groceries, clothing, furniture and electronics.
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Visa Inc. (V) : Free Stock Analysis Report
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