According to Motif Investing, “the way we pay is undergoing an unprecedented shift,” as consumers continue to move away from paper-based cash and checks and toward plastic and other digital methods.
Electronic payments offer consumers a plethora of benefits and account for more than 75 percent of total non-cash transactions in the U.S.
Meanwhile, traditional cash-based emerging markets are also adopting to new payment methods.
Motif Investing has constructed its Motif Digital Dollars Index, which consists of financial firms involved in four segments: Card Networks, Processors, Solutions and Infrastructure & Software.
Visa Inc V represents 17.7 percent of the entire index, while MasterCard Inc MA lags slightly behind at 17.6 percent.
The third largest holding in the index is eBay EBAY at 9.9 percent, followed by American Express AXP at 9.6 percent and Fidelity National Information Services FIS at 6.0 percent.
The index, which comprises a total of 25 companies, has returned 8.2 percent year to date and has a 0.7 percent dividend yield with a P/E ratio of 26.20.
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