Top 7 Payment Stocks: Citi Research’s View on the Sector’s Key Players

Investing.com -- The payments and fintech sector continues to evolve rapidly as digital transactions become increasingly embedded in global commerce.

Citi Research has identified several standout performers poised for growth in this competitive landscape. Here’s a breakdown of the top contenders in the space, according to their latest analysis.

Visa leads the pack with its dominant position in the global payments ecosystem. Despite facing regulatory challenges in Europe regarding interchange fees, the company maintains strong fundamentals and an unmatched acceptance network. Citi Research highlights Visa’s strategic initiatives in real-time payments and tokenization as key drivers for sustained transaction volume growth over the coming years.

1. Visa (V): The payment giant continues to leverage its extensive global network while expanding into new technologies. Regulatory scrutiny in Europe presents challenges, but Visa’s fundamental strength and innovations in real-time payments and tokenization position it well for continued leadership.

Visa Inc. reported fourth-quarter 2025 earnings that slightly beat expectations, with an EPS of $2.98 and revenue of $10.7 billion.

2. Mastercard (MA): With projected 2025 net revenue of $32.7 billion (up 13.7% organically year-over-year), Mastercard demonstrates consistent double-digit growth and high operating margins. The company’s early adoption of tokenization—currently at 30% of transactions—could generate an additional $900 million in annual revenue if fully implemented. Partnerships with Circle and Fiserv showcase its adaptability to emerging payment technologies.

In recent developments, Mastercard has launched several new solutions, including a threat intelligence tool to prevent payment fraud and a commerce media network for personalized advertising. The company also named Jill Kramer as its new Chief Marketing and Communications Officer.

3. Block (NYSE:XYZ): The company formerly known as Square is regaining momentum with Citi assigning a Buy rating and $105 target price. Forecasts show 2025 gross profit reaching $10.17 billion, up 14.4% year-over-year. Square’s gross payment volume is expected to grow nearly 10% annually, while Cash App’s expansion into lending and BNPL services provides additional growth avenues.

Block, Inc. announced a partnership with Grubhub to integrate its Square point-of-sale system with the food ordering platform. Additionally, Jefferies raised its price target on the company to $95 from $90.

4. Toast (TOST): This restaurant-focused payments provider ranks in the 91st percentile of the Russell 3000 for investor interest. With 40% of its risk being company-specific, Toast’s continued growth through new restaurant management products and integrated payment tools remains crucial for performance.

Toast appointed Atlassian President Anu Bharadwaj to its Board of Directors. The company also received an initiation of coverage from Freedom Capital Markets with a Buy rating and a $45 price target.

5. Affirm (AFRM): Standing out in the BNPL space, Affirm carries a Buy/High Risk rating with a $100 target price from Citi. The company boasts a three-year revenue CAGR of 40% and expects at least 20% revenue growth through FY26. Its Affirm Card has driven 132% year-over-year GMV growth in-store during the fiscal fourth quarter, while its AdaptAI technology has improved GMV by 5% for participating merchants.

Affirm Holdings Inc. has recently expanded its partnerships with both Worldpay and Wayfair, integrating its buy-now-pay-later services more deeply into their payment platforms.

6. Global Payments (GPN): Emerges as the leader in B2B payment modernization, with Citi Research emphasizing its strong positioning in digitizing accounts payable and receivable processes. The company’s MineralTree unit provides a competitive advantage in this space, while its TouchNet platform offers additional growth potential in education payments. Despite facing competition in the B2B segment, GPN’s deep integration with large enterprise clients creates a reliable foundation for transaction growth as businesses continue moving away from paper-based systems.

7. Bill Holdings (BILL): Ranks second in Citi’s assessment, with the research firm identifying it as a specialized provider modernizing financial back-office processes for small and mid-sized businesses. BILL’s strength lies particularly in accounts payable and receivable automation, with significant room for expansion into broader B2B ecosystems where check payments remain prevalent. While the company faces both competitive pressures and macroeconomic challenges, Citi notes that BILL’s focus on enabling digital transitions gives it a structural advantage in what remains a fragmented market.

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