2 exciting ASX payments shares to buy

Afterpay Ltd (ASX:APT) and Pushpay Holdings Group Ltd (ASX:PPH) shares could be great options in the payments industry right now….

| More on:
Graphic illustration of buy now pay later technology overlaid on blurred photo of businessman on tablet

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One side of the technology sector which I think is a great place to invest is the payments industry.

Due to the proliferation of smart phones, changing consumer habits, and the meteoric rise of online shopping, a number of companies have been disrupting the industry.

Two payments companies that have really caught the eye in recent years are listed below. Here's why I think they could be great long-term investment options:

Afterpay Ltd (ASX: APT)

The first payments company to look at is Afterpay. I believe it could be a great long term option for investors due to its leadership position in a buy now pay later industry growing very quickly thanks to the increasing popularity of the payment method with both consumers and merchants. Another big positive is the ongoing shift to online shopping which has been accelerated by the pandemic. 

In light of these factors, I'm expecting another very strong performance in FY 2021. After which, I expect Afterpay to continue its positive growth trajectory over the coming years due to its international expansion. The company has recently entered the European market, has its eyes on a potential expansion in Asia, and moved in-store in the $5 trillion United States market. Overall, I continue to believe Afterpay has the potential to become a payments giant in the future.

Pushpay Holdings Group Ltd (ASX: PPH)

Gone are the days of buckets being passed around in churches by pastors for donations. Today, Pushpay's donor management platform makes donating a seamless experience for both the giver and the receiver. Unsurprisingly, this and its community engagement solution have been well-received by churches in the United States and led to a surge in customer numbers over the last few years.

This has underpinned exceptionally strong sales and earnings growth. Pleasingly, more of the same is expected in FY 2021, with Pushpay expecting to more than double its operating earnings once again. The even better news is that this growth isn't expected to end any time soon. Pushpay is aiming to capture a 50% share of the medium to large church market in the future. This represents a US$1 billion opportunity, which is almost 7 times greater than the revenue it generated in FY 2020.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

$100 Australian notes on top of each other.
Growth Shares

Where to invest $10,000 into ASX shares in July

Analysts are raving about these shares. But why are they buys?

Read more »

Four piles of coins, each getting higher, with trees on them.
Growth Shares

2 ASX growth shares to buy this month: experts

These stocks are expected to have a strong next few years…

Read more »

Concept image of a businessman riding a bull on an upwards arrow.
Growth Shares

3 ASX growth shares to buy before the next bull market

These shares could fare well in the next bull market. Here's what analysts are tipping as buys.

Read more »

Two university students in the library, one in a wheelchair, log in for the first time with the help of a lecturer.
Growth Shares

3 no-brainer ASX shares to buy with $200 right now

You don't need a brain to see that these shares could be top picks right now.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX growth stocks worth buying with $7,000 in your portfolio today

These stocks are all historic market beaters.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Growth Shares

3 ASX 200 shares with huge growth potential in the next decade

Analysts think these growth shares could be in the buy zone in July.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Growth Shares

Where I'd invest $5,000 into ASX 300 growth shares

These stocks have excellent growth potential.

Read more »

a woman sits at a computer with a satisfied expression on her face in a white room with greenery outside her window.
Growth Shares

The ASX growth stock up 10% this year with more room to move

This broker believes there’s still more in the tank for this telecommunications company 

Read more »