The payments space is highly attractive for stock investors. Virtually all payments companies are benefiting mightily from the long-term switch away from cash and toward electronic payments -- a trend that isn't stopping anytime soon.
In addition, all the big payments players seem to have large economic moats. Being a leader gives incumbents the ability to invest in the latest technology and security solutions, as well as develop new products from their troves of payments data.
And once a large network is established, very often it doesn't require much in the way of additional investment, meaning these companies generate lots of operating leverage, or profit growth well above revenue growth. Payments leaders also generate tons of cash flow, which their management teams often redeploy into value-add acquisitions or share repurchases.