1 Fintech Stock to Buy Right Now – Motley Fool

1 Fintech Stock to Buy Right Now – Motley Fool

Digital payment providers and “war-on-cash” stocks have been among the big winners during these very strange times as the coronavirus pandemic has accelerated the already rapid cashless trend. But one of the names that has slipped below the radar among all the highfliers in this area of fintech lately is American Express (NYSE:AXP).

While there are many great investment options among fintech companies, American Express might be the best value right now with a good long runway of growth ahead of it. Oh, and by the way, it is a top-five holding of Warren Buffett, chairman of Berkshire Hathaway, and a stock he’s held for 27 years.

So, there’s that. But here are some other reasons American Express is a stock to buy right now.

American Express is good value compared to its peers

American Express is a credit card company and a strong brand that has been around since 1850. As any cardholder will tell you, it’s different from its larger competitors like Visa (NYSE:V) and Mastercard (NYSE:MA) in that it is its own financial network, so it doesn’t issue credit cards using third-party banks to fund the transactions. Instead, it lends money to the card user itself and then requires repayment in full at the end of the month.

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Image source: Getty Images.

But like its competitors,