Stocks to buy

As the first half of the year fades away, it’s time to look for the top financial services stocks to buy for June.

In the financial services industry, three prominent players have the lead. One drives growth through a cutting-edge payment infrastructure based on digital currencies. Another succeeded by attaining operational efficiency. The third has harnessed the power of strategic collaborations.

This article will delve deeper into the bullish catalysts driving these financial services stocks. It will provide a clear view of their growth trajectory, making them enticing prospects for investors seeking the top financial services stocks to buy for June.

V Visa $221.03
AXP American Express $158.56
MA Mastercard $365.02

Visa (V)

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Visa (NYSE:V) is concentrating on gaining growth from global payment infrastructure. Visa’s participation in the LIFT Challenge and collaboration with Agrotoken, Microsoft and Sinqia demonstrates its commitment to innovative use cases.

These use cases are for digital currencies and blockchain technology. This initiative aims to transform financing for small and medium enterprises, particularly farmers. It provides them with better access to global capital markets by tokenizing financing contracts and attracting global investors.

Also, Visa’s focus on central bank digital currencies (CBDCs) and developing security technologies for digital payments positions the company as a leader in the digital economy.

It aims to enable cross-border payments and facilitate interoperability between currencies. It may, in turn, boost transactions and cross-border volume for Visa.

Visa’s growth in tokenized credentials and adoption of Tap to Pay technology indicate positive momentum in consumer payments.

American Express (AXP)

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Similarly, American Express (NYSE:AXP) focuses on enriching its operational performance to derive growth. It has shown promising growth potential through various key data points.

The company reported record revenues of $14.3 billion in Q1 2023, indicating a 22% year-over-year increase.

Spending trends, especially in travel and entertainment, are crucial for AXP’s performance. The company experienced substantial 39% year-over-year growth in this category.

AXP’s ability to attract and retain customers from younger generations, such as Millennials and Gen Z, is another positive indicator.

AXP’s international expansion efforts have been fruitful. The company’s reorganization of its international business has led to a return to pre-pandemic growth trends.

Further, International Card Services billings increased by 29% on an FX-adjusted basis. It is primarily driven by strong growth in travel and entertainment spending. This expansion into international markets provides AXP with an additional avenue for revenue growth.

Mastercard (MA)

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Mastercard (NYSE:MA) is concentrating on building strategic partnerships to breed growth. One notable partnership is the global expansion of the payment partnership with UniCredit. The partnership aims to streamline partnerships and contracts, enhancing the overall product offering for cardholders. As a result, it may significantly boost the transaction volume for Mastercard.

Mastercard’s collaboration with Expedia (NASDAQ:EXPE) to launch “Travel with Rewards” revolutionizes the loyalty point redemption process in the travel industry. By integrating Mastercard’s digital redemption capability with Expedia’s travel supply, the partnership offers seamless and rewarding experiences for cardholders.

The solution allows cardholders to transform loyalty points into travel experiences and brings valuable travel demand to Expedia’s global supply partners.

Integrating customer service expertise further enhances the overall customer experience.

On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.