Credit card transactions are rising on the service sector’s reopening and increased discretionary spending ahead of the forthcoming holiday season. Credit card companies Visa (V), Mastercard (MA), should all benefit. What stock do you think is the best buy? Read more to find out.Payment’s technology company Visa Inc . The NYSE: facilitates digital payment between consumers, merchants and financial institutions. VisaNet is a network for transaction processing. V has its headquarters in Foster City, California. Mastercard Incorporated, a NYSE: company that provides payment processing services and products related to transactions, is a comparison. Purchase is a company that facilitates payment transaction processing, including clearing and settlement.

Over the last year, credit cards have seen a significant increase in use as online payment options. This is because people are more comfortable using digital methods of payments that suit their remote lifestyles. The increase in spending on discretionary goods and services has led to retailers reporting solid sales, despite the rising cost of products. Retail sales rose by 1.7%, seasonally adjusted according to U.S. Commerce Department. This should encourage credit card company growth. The credit card market should be boosted by technological innovation, rapid adoption and growth of digital prepaid cards services. Research and Markets predicts that the credit card market will grow by 3% to reach $103.06 billion by 2021.

MA has gained 0.9% in price over the past month versus V’s negative returns. Also, MA’s 6.5% gains over the past nine months are higher than V’s negative returns. MA is the clear winner with 6.7% gains versus V’s negative returns in terms of their past year’s performance.

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