Better Buy: PayPal vs. Mastercard
Fintech refers to the many ways technology can be used to make financial services faster, safer, and more affordable. Two companies that have been diligently working in the financial technology arena for years are Mastercard (NYSE: MA) and PayPal Holdings (NASDAQ: PYPL), and shareholders have been fantastically rewarded for owning both over the past few years. While I believe both will continue to be market-beating investments over a long enough time horizon -- hence why I hold shares of each in my personal portfolio -- which one would make a better investment today? Let's take a closer look at the data to see if we can arrive at a clear choice.
Both Mastercard and PayPal are innovating to make traditional financial tasks cheaper, safer, and more convenient. Image source: Getty Images.
Though it has several lines of business, PayPal's core platform might best be described as a digital wallet -- a tool that makes it easy for account holders to move and store funds, and make online purchases. After it was spun off from eBay in 2015, PayPal took advantage of its lack of affiliation with any financial institution, merchant, phone maker, or operating system to create a number of partnerships. With CEO Dan Schulman at the helm, it has embarked on a strategy of striking as many of these partnerships as possible -- with 38 inked from 2016 through 2018.
Source Fool.com
