2024 witnessed diverse performances across global financial markets, with significant regional and sectoral variations. In the US, the stock market, particularly the technology sector, experienced notable growth, with the Nasdaq Composite rising 29% in 2024, according to Investopedia. Companies like AppLoving (+713%), Palantir (+340%) and Nvidia (+171%) led the charge, driven by increased demand for artificial intelligence (AI)-related technologies, as highlighted by the Motley Fool.
Emerging markets, notably India, also recorded growth, with the Nifty 50 index and the Stock Exchange Sensitive Index (Sensex) closing the year with gains of 8.8% and 8.2%, respectively.
Conversely, Europe and the UK faced challenges, with the FTSE 100 index posting a modest 5.7% increase, while France’s stock market index, CAC 40, declined by 2.1%.
The global payment sector reflected these mixed performances. A recent analysis by FXC Intelligence, a financial data company specializing in payments and e-commerce, looked at the performance of key publicly-traded cross-border payment companies in 2024, highlighting both the best and worst performing stocks of the year.
Payoneer: +97.42%
Payoneer emerged as the top performer, with its share price nearly doubling to US$9.93 by December 19, 2024.
The surge reflects the company’s updated 2024 guidance, which included a US$20 million increase in its revenue outlook range to US$950-960 million as well as a US$30 million rise in its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) outlooks to US$255-265 million.
In Q3 2024, it achieved record revenue and volume, reporting a 19% year-over-year (YoY) revenue increase to US$248 million and 25% YoY volume growth to US$20.4 billion. This increase was driven by the company’s focus on higher value customers, expansion in key markets including Asia-Pacific (APAC) and Latin America (LatAm), and rising interest income.
Payoneer is a financial services company headquartered in New York City. It allows businesses and professionals to send and receive funds globally, offering multi-currency accounts for easy cross-border payments.
PayPal: +39.03%
After Payoneer, PayPal ranked second with a 39.03% rise in its share price to US$85 by December 19.
In 2024, the online payment giant experienced significant profit improvements, driven by increased efficiency and cost control. The company’s free cash flow, which peaked at US$5.4 billion in 2021, had declined to US$4.2 billion by 2023. However, PayPal now forecasts a record US$6 billion in free cash flow for 2024, according to the Motley Fool.
Transaction margins, which measure the cost of processing a transaction relative to revenue, steadily increased throughout 2024, reaching 45% in Q1, 45.8% in Q2, and 46.6% in Q3. Additionally, key operating costs decreased as a percentage of revenue, enhancing overall efficiency.
This upward trend in profits comes as PayPal’s stock began 2024 at multi-year lows, positioning the company for a potential market-beating performance since 2020.
Adyen: +29.69%
Adyen, a Dutch payment solutions provider, saw a 29.69% annual increase in 2024, with its share price rising to EUR 1,503 (US$1,547) by December 19, making it the third best performing cross-border payment stock of 2024.
In H1 2024, Adyen reported a strong 24% net revenue growth YoY. The company also expanded its EBITDA margin from 43% to 46%, showcasing solid operating leverage.
Key contributors to this growth included robust regional performance, particularly 30% growth in North America and 25% in Europe, the Middle East and Africa (EMEA), along with strategic licenses secured in India and Mexico. Furthermore, the company’s focus on unified commerce, cost optimization initiatives like reducing transaction fees, and wallet share expansion with existing customers, helped strengthen its market position.
Alpha Group: +29.31%
Alpha Group recorded a 29.31% increase, with its share price reaching GBP 2,210 (US$2,700) by December 19, making it the fourth-best-performing cross-border payment stock of 2024.
Alpha Group posted 16% revenue growth in its unaudited interim results for H1 2024, reaching over GBP 64 million (US$78 million), Finance Magnates reported.
The corporate division saw a 12% rise in revenue to GBP 30 million (US$37 million), while the institutional division grew by 15% to GBP 33 million (US$40 million). Underlying profit before tax climbed 14% to GBP 22.3 million (US$27.3 million), with organic growth (excluding its acquisition Cobase) reaching 21% at GBP 23.7 million (US$29 million).
Alpha Group, formerly known as Alpha FX, is a leading provider of financial solutions serving corporates and institutions operating internationally.
Mastercard: 23.25%
Mastercard ranked fifth, delivering a 23.25% increase in share price and reaching US$523 by December 19.
The payments processor reported a better-than-expected profit for Q3, posting a 13% increase in net revenue driven by growth in the payment network and value-added services and solutions. Payment network revenue rose 10% due to a 10% increase in gross dollar volume to US$2.5 trillion, 17% growth in cross-border volume, and an 11% rise in switched transactions.
By the end of Q3, Mastercard’s customers had issued 3.4 billion Mastercard and Maestro-branded cards.
Worst performing cross-border payment stocks
While these companies thrived in 2024, others underperformed significantly. Argentex suffered the steepest decline, with its share price dropping 67.52% to GBP 30 (US$36.7) by December 19.
The UK-based payment and currency risk management specialist reported to a pretax loss of GBP 1.7 million (US$2 million) in H1 2024, compared to a profit of GBP 4.8 million (US$5.9 million) a year prior. EBITDA also fell from GBP 7.2 million (US$8.8 million) to GBP 700,000 (US$857,000), and revenue declined 4.4% YoY to GBP 23.9 million (US$29 million).
Argentex attributed the drop to reduced client spending due to lower foreign exchange volatility despite a 19% growth in the number of clients trading.
Other underperforming companies in 2024 included d-local (-32.1%), CAB Payments (-15.37%) and Western Union (-11.38%).
Featured image credit:edited from freepik
