Which Credit Card Company Is the Best Stock to Buy?

Consumer spending habits have evolved over the past few years. While cash used to be the primary form of payment, consumers now overwhelmingly prefer to use debit and credit cards to complete their transactions.

If you're looking to grab hold of this trend and turn it into investment returns, which credit card company should you go with?

We'll take a look at your 3 Canadian credit card network options: American Express, Visa, and Mastercard.

Why buy into a credit card stock?

The explosion in e-commerce has also contributed to the rise of card use.

According to the Canadian Bankers Association, 89% of adult Canadians now carry at least one credit card. Approximately 4 out of 5 Americans have a credit card – underscoring the importance of card payments.

With approximately 636 million cards in circulation in the U.S., some might argue that the electronic payment space is saturated.

Still, much of the world continues to use cash as the primary form of payment, including China and India. This leaves ample room for the largest credit card stocks to continue to grow.

American Express (AXP)

American Express has grown into one of the largest names in the credit card industry, with a revenue of $80.5 billion in 2025. The company stock, AXP, is a large-cap stock with a market capitalization of $231.7 billion at the time of writing.

Despite a brief revenue slowdown during the COVID-19 pandemic, Amex stock has rebounded and grown every year. Take a look:

• American Express annual revenue for 2025 was $72.23B, a 9.52% increase from 2024.
• American Express annual revenue for 2024 was $65.95B, a 8.97% increase from 2023.
• American Express annual revenue for 2023 was $60.52B, a 14.49% increase from 2022.

Our predictions

We expect American Express to grow earnings per share at around 14% annually through 2027, buoyed by a combination of revenue growth and share repurchases. We also think it will see a major price-per-share improvement in 2027, rising to $17.69.

Using the current share price of $337.50*, the stock trades with a price-to-earnings ratio of 22.27. Although AXP stock isn’t booming as much as it has in recent years, it’s experiencing steady growth, thanks to an affluent customer base that hasn’t slowed its spending.

Expected returns over the next year consist of the following:

• 83.93% revenue growth
• 14.32% EPS growth

Stock market analysts recommend holding Amex stock, since the 12-month target price is $336.8, down 0.21% from the latest price. With a forecasted upside growth of 5.02%, now is the time to hold Amex stock and enjoy steady growth.

Mastercard Incorporated (MA)

Mastercard Incorporated (MA) partners with more than 25,000 financial institutions, giving the company one of the largest electronic payment ecosystems in the world. The company generated revenue exceeding $32.79 billion in 2025. With a market cap above $465 billion, Mastercard is a mega-cap stock.

Like American Express, Mastercard’s business was impacted by reduced spending due to COVID-19. However, since 2020, Mastercard has experienced steady annual growth of 12% or more, signalling a strong recovery.

Our predictions

Using the current share price of $518.36 and expected earnings-per-share of $20.11 for 2026, Mastercard has a forward price-to-earnings ratio of 26.53. Mastercard does pay a small dividend, currently yielding 0.67%.

Total returns would consist of the following:

• 12.3% revenue growth
• 15.84% EPS growth

Combined, we expect Mastercard to offer a 13% annual return through 2026.

Mastercard is one of our favourite credit card companies due to its long-term growth potential and size and scale that is nearly unmatched by its peers. Given the scale of this credit card company, we expect steady growth to sustain its stock price. Analysts almost overwhelmingly recommend buying Mastercard right now.

Visa Inc. (V)

Visa Inc. (V) is one of the most dominant electronic payment brands globally. The company has operations in more than 200 countries and can handle more than 65,000 transactions per second.

With a market capitalization of $598.64 billion, Visa is one of the largest companies in the world, regardless of sector. The company generated nearly $40 billion in revenue in fiscal 2025.

Our predictions

We believe Visa will compound earnings per share at 13% throughout 2026. This is lower than its decade-long average growth rate, but we feel a slightly lower growth rate is prudent given Visa’s already large business.

Using the share price of $314.08 and expected earnings-per-share of $13.09 for the current fiscal year, Visa trades at 26.5 times forward-adjusted earnings.

Visa also pays a dividend, with the stock yielding 0.85% today.

Total returns would be made up of:

• 10.31% revenue growth
• 13.13% EPS growth

Market analysts agree that now is a good time to buy Visa stock, given its earnings momentum and increase in cross-border activity. These benefits result from Visa building a stable income profile.

Final thoughts

How consumers pay for goods and services has changed over the years. This is likely to continue as more of the world shifts from cash to plastic for transactions. American Express, Mastercard, and Visa should all benefit from this transformation.

That being said, we believe American Express is a hold at their current prices, while Mastercard and Visa are strong buys. On a pullback, we would find these names much more attractive.

* All share prices and price-to-earnings ratios used for the predictions in this article were gathered at the time of writing and could be slightly different from what they are today.

FAQ

What is the best credit card company stock to invest in?

Of the credit card stocks highlighted above, Mastercard is probably the strongest to invest in, given the value of its shares and the company's impressive scale. Visa is also a solid choice for investing right now, and Amex is quite strong, just not as strong as the other options.

Are credit card stocks good investments?

Credit card stocks can be solid investments, thanks to their widespread use and growth that's backed by consumer spending. However, like all investments, they carry risk — so it's always wise to research a stock's historical performance and future outlook before purchasing shares.

What are the top 5 stocks to invest in right now?

Looking at the New York Stock Exchange, the top 5 performers are Taiwan Semiconductor Manufacturing, Berkshire Hathaway (A), Berkshire Hathaway (B), Eli Lilly and Company, and JPMorgan Chase & Co. Not much further down this list, Visa and Mastercard rank 8th and 9th, respectively.

Can I buy stocks with a credit card?

Most stock brokerages don’t allow you to pay for shares with a credit card, and most financial experts agree that using your card to buy stock is a bad move anyway. Not only is it risky, but you’ll pay high interest rates and could be hit with fees if you miss a credit card payment.