Organized retail crime and rising tap to pay fraud are putting a fresh spotlight on the payment technology and fintech space, as retailers face security gaps, rising chargebacks, and the potential impact of new legislation like the Combating Organized Retail Crime Act. For investors, the question is which stocks could see stronger demand for their tools and services as the cost of fraud climbs toward an estimated $1b a year, and which might face higher risk. This article looks at 3 stocks exposed to these trends that could be shaped by this wave of digital crime and security spending.

Jack Henry & Associates (JKHY)

Overview: Jack Henry & Associates is a financial technology company that provides core banking systems, digital banking tools, and payment processing services that help US banks and credit unions run their day to day operations and offer secure digital payments to customers.

Operations: Jack Henry & Associates generates most of its roughly US$2.5b in revenue from Payments (US$924.9m), Core banking platforms (US$771.2m), and Complementary software and services (US$724.2m), almost entirely from the United States.

Market Cap: US$10.5b

Investors looking at Jack Henry & Associates in the context of rising retail and tap to pay fraud are getting a company deeply embedded in bank cores and digital channels, with fraud detection and AI driven security now a top spending priority for many of its clients. Its Financial Crimes Defender platform, expanding Google Cloud security partnership, high profit margins, and strong ROE sit alongside a steady dividend and a balance of recurring software and payments revenue. On the flip side, reliance on US regional banks, modest forecast growth, and higher funding risk without customer deposits mean the story is not without tension, especially with a P/E above peers and increasing competition from faster moving fintechs.

Jack Henry & Associates sits at the crossroads of bank cores, fraud tools, and tap to pay security, yet its P/E premium raises difficult questions. Get the full picture with the DCF valuation analysis for Jack Henry & Associates, including one assumption that could change how you see its risk reward balance.

Visa (V)

Overview: Visa is a global payment technology company that runs VisaNet, a network that processes card and digital transactions. It offers credit, debit, and prepaid products, tap to pay and tokenization services, real time money movement through Visa Direct, and a range of risk, analytics, and advisory tools for consumers, merchants, financial institutions, and governments.

Operations: Visa generates about US$43.0b in revenue from payment services, with roughly US$26.5b coming from international markets and about US$16.6b from the United States.

Market Cap: US$669.0b

Investors watching rising tap to pay and app based fraud may see Visa as both exposed and well positioned, given its global scale, 51.2% net profit margins, high ROE, and heavy focus on AI driven fraud tools such as Visa Protect, Deep Authorization, and scam disruption services. The company is also pushing into stablecoins and AI agent commerce through the Visa Stablecoin Platform, Open USD collaborations, and AGENTIC Ready programs. These initiatives could open new payment flows but also test its ability to keep fees and margins resilient. With a premium P/E, insider selling, and 100% of liabilities funded through external borrowing, the question is whether Visa's security, tokenization, and value added services are enough to justify its valuation and fraud related upside in the Payment Technology and Fintech Stocks screener.

Visa's strong margins and AI fraud tools might be obscuring the real story behind its premium P/E. Before you decide how to position this stock, review the analysis report for Visa for one detail that could change your thesis.

WEX (WEX)

Overview: WEX is a payments and software company that helps businesses manage fleet fuel cards, corporate payments, and employee benefits on a single, secure platform, serving sectors from trucking and travel to healthcare and payroll providers.

Operations: WEX generates about US$1.4b in revenue from Mobility, US$814.3m from Benefits, and US$486.9m from Corporate Payments.

Market Cap: US$5.5b

WEX provides exposure to growing concern around organized retail and transaction fraud through a company involved in fraud detection, card controls, and embedded payment tools across fuel, travel, and healthcare spend. Management has discussed higher transactional and application fraud volumes, and also detailed how closer work with law enforcement and merchants, upgraded fraud tools, and product changes have coincided with lower fraud activity and loss rates. That mix of payment scale, security focus, and exposure to health benefits and accounts payable automation sits alongside its earnings profile and an active buyback plan. At the same time, the stock carries funding risk because the company relies on external borrowing rather than deposits. The key consideration for investors is how to weigh that fraud-focused profile against its debt-driven capital structure and P/E premium to the industry.

WEX’s fraud focused payments engine and debt driven balance sheet may be masking a very different risk reward profile. Get the full picture in the analysis report for WEX

The three stocks covered here are just a starting point, and the full Payment Technology and Fintech Stocks screener surfaces 12 more companies with equally compelling payment and fraud prevention stories that you have not seen yet. Use Simply Wall St to identify and analyze the specific catalysts, fraud trends, digital payment angles, and balance sheet traits that matter most to you, so you can focus on the highest conviction ideas in this theme.

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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.