With the payments sector on fire, Wirecard AG (WCAGY)(WRCDF) remains a relatively unknown stock. The recent deal for Worldpay (WPYGY), top payments processor in Europe, could draw more attention to the German-based payments processor and the general sector.Â
Though the stock is up substantially in the last year, Wirecard has seen fast growth unlike some of the other European payments processors and has built up growth catalysts outside of Europe. The stock appears to have several paths to a higher stock price without needing a buyout offer.Â
European Payments DealsÂ
Vantiv (VNTV) agreeing to acquire the top payments processor in Europe for $9.9 billion leaves Wirecard as the largest remaining payments processor. WorldPay was once part of the Royal Bank of Scotland until the bank was forced to sell in during the financial crisis in 2010. Interested parties for Worldpay apparently included JPMorgan Chase (JPM) among others through the large U.S. bank downplayed the interest.Â
According to the Daily Telegraph, Europeans are quickly moving to a cashless society with a third already signaling a desire to only pay with cash. In fact, a cafe owner apparently had no problems with customers when shifting to a cashless system from one where roughly 30% of customers previously paid with cash. The business owner quickly went from a trial to fully implementing the cashless system due to the success.Â
Now apparently, Blackstone (BX) and CVC Capital Partners are teaming up to make an offer for British online payments processor Paysafe (NVAFF). The payments provider apparently had revenues of $1 billion last year and the Blackstone group has offered $3.7 billion in a preliminary bid. Paysafe currently trades above that price as the market likely expects a sweetened bid. At the same time, Danish payment services firm Nets has appeared in the news as being approached by potential buyers.Â
Don’t be surprised if Wirecard gets some interest, but the reason to hold the stock is for the long-term growth.Â
