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5 Payment Stocks That Earn a Fee Every Time You Swipe
The Motley Fool·
The article analyzes five payment processing stocks that earn fees on transactions: Visa, Mastercard, American Express, PayPal, and Capital One. Visa and Mastercard trade at premium valuations (~28x earnings) due to their low-risk fee-based models with no lending exposure. PayPal and Capital One trade cheaper (~9-10x earnings) due to higher risks from shrinking margins and credit exposure respectively. American Express falls in between at ~16x earnings. The author recommends Visa and Mastercard as the simplest payment fee plays, with Mastercard having a slight edge due to faster-growing services revenue.
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