Visa (NYSE:V) and Discover FInancial (DFS) are two of the top credit card companies. One key difference is that Visa is focused on processing transactions, while Discover assumes credit risk. Patrick Ryan explains which stock is the better buy.Currently, conditions are optimal for credit card companies. Consumer spending is at record highs, while household balance sheets are in good shape. Thus, defaults are likely to be low especially as the economy will remain strong well into 2022. Of course, credit card spending continues to take a larger share of the pie which has been a multidecade trend. For investors, they can choose between credit card companies that take on risk or companies that simply process transactions.
Visa (V) and Discover Financial (DFS) are two of the most intriguing credit card plays to consider as the economy reopens.
Visa (V)