Regulators in the UK are taking aim at the commission-heavy app store models of Apple and Google, opening the door to lower fees and more freedom for app developers to choose how users pay. For investors, that points straight to the payment technology space, where some companies could see fresh demand if alternative payment routes gain traction. This article looks at 3 stocks from our Alternative Payment Providers and Payment Technology screener that appear positively exposed to the news around potential changes to in-app payments, which may help you decide whether they deserve a closer look or a spot on your watchlist.

Flywire (FLYW)

Overview: Flywire is a Boston based payment software company that plugs into existing apps and workflows to help institutions in education, healthcare, travel and B2B accept, route and reconcile payments across cards, bank transfers and digital wallets like PayPal and Alipay.

Operations: Flywire generates all of its US$677.7 million in revenue from data processing services, with around US$316.3 million from the Americas, US$257.8 million from Europe, the Middle East and Africa, and US$103.6 million from Asia Pacific.

Market Cap: US$2.1b

Flywire stands out as a potential beneficiary of regulators pushing for alternatives to Apple and Google’s in app payment tolls, because its platform is built to handle complex global payments inside third party apps and enterprise systems. Revenue and earnings growth have been strong, the business has recently moved into consistent profitability with improving margins, and new partnerships like Penn State and Scholarship America point to deeper penetration in its core education vertical. At the same time, a high P/E, funding that relies on external borrowing and a run of insider selling mean expectations are already high and execution risk matters. The real question is whether Flywire can keep compounding as competition, regulation and technology keep evolving around it.

Flywire’s accelerating shift to consistent profitability and high P/E expectations raise a simple question for investors: what is already priced in and what might still surprise you in the 3 key rewards and 1 important warning sign

Nuvei (TSX:NVEI)

Overview: Nuvei is a Montreal based payment technology company that helps merchants and app developers accept and send payments worldwide, across cards, digital wallets and local payment methods, from a single platform.

Operations: Nuvei generates about US$1.36b in revenue from providing payment technology solutions to merchants and partners.

Market Cap: CA$6.8b

Nuvei may be worth a close look for investors who think regulators pushing back on Apple and Google’s in app payment tolls could shift more volume to independent providers. The company already supports direct payments and subscriptions outside app stores, and it is expanding local acquiring, such as its recent move in Mexico, to give merchants better approval rates and more data. Forecasts point to earnings and revenue growth, but the story is not risk free, with interest costs poorly covered, past shareholder dilution and one off items including a CA$21.2m loss affecting reported results. The potential Payoneer deal and Nuvei’s global licences could reshape its scale and cross border reach, but the implications for debt, integration and returns require closer scrutiny.

Nuvei’s global reach and potential Payoneer tie up could be masking a bigger inflection point for its earnings story, debt profile and one off items. Get the full picture in the analysis report for Nuvei

Boku (AIM:BOKU)

Overview: Boku is a London headquartered fintech that helps global merchants get paid through local methods such as carrier billing, digital wallets and real time bank transfers, so users can pay inside apps and digital services without a card. Its platform connects mobile operators, wallets and other providers to large merchants, handling both the technical link and the movement of funds across multiple regions.

Operations: Boku generates about US$128.8 million in revenue from payments, with US$11.4 million from the Americas, US$64.5 million from Asia Pacific and US$53.0 million from Europe, the Middle East and Africa.

Market Cap: £444.8 million

Boku is closely aligned with the UK move to loosen Apple and Google’s grip on in app payments, because it already provides the alternative rails developers can use to route purchases through carrier billing, wallets and local bank schemes instead of app stores. Published earnings growth forecasts above 30% a year, rising profit margins and a merchant roster that includes global digital platforms highlight the potential for operating leverage if more app traffic shifts to these local methods. Recent governance steps, such as the formation of a new Nominations Committee, are intended to keep oversight tight as the business scales. The company also faces a rich P/E valuation, reliance on external borrowing and execution risk in new markets, so the potential benefits from this emerging payments theme come with meaningful risks attached.

Accelerating earnings forecasts, rising margins and Boku’s role in alternative in app payments hint at a bigger story. See how that growth profile stacks up in the analyst forecasts for Boku and what might change it next.

The three stocks highlighted here are just a starting point, with the full Alternative Payment Providers and Payment Technology screener uncovering 29 more companies that pair payment processing, financial technology and billing services with equally compelling narratives around in app and alternative payment routes. Use Simply Wall St to identify and analyze the specific catalysts, business models and risk profiles that fit your view on this theme so you can focus on the highest conviction opportunities in the group.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.