With COVID-19 cases rebounding, Apple’s digital payments platform has a global opportunity for growth as penetration of digital payment platforms increases. As a result, on Monday, analysts at Cowen reiterated their Outperform rating on shares of AAPL and reaffirmed their $133 price target.

Apple is currently diving into the robust growth space that is fintech industry via offerings such as Apple Pay, the Apple Card and Apple Cash. Fintech businesses have been experiencing accelerated growth during the pandemic because of the major switch to digital services and attractiveness of contactless payment. Digital services have made the life of consumers easier with the ability to complete everyday necessities at home such as attending school (via zoom, etc), ordering groceries, shopping, etc.

With that, Apple is proving itself a top name in fintech by exploiting its services that were positively impacted by the virus.

The Apple Pay feature has been the primary revenue driver for the company’s digital payments platform. Apple’s digital services continue to grow acceptance by US retailers, physically and online, especially as the pandemic is driving the demand for online purchases. Given that, Apple has the potential to exploit this opportunity to further expand its service business in the North American market.

The analysts note: “After seeing strength in recent years from cash and debit related spending, we believe credit card-based payments could grow slightly faster in the coming years. Though Apple Pay can be linked to credit cards, debit cards, as well as bank accounts as a source of funds, we assume credit cards are the main source of funding for the Apple Pay digital wallet.”

Over at Action Alerts PLUS, Jim Cramer and the team mentioned to members, “We believe longer-term upside will come as Services revenue grows its share of overall sales. Services provide for a recurring revenue stream at higher margins, a factor that serves to reduce earnings volatility while allowing for a higher percentage of sales to fall to the bottom line, as a result, we believe that Services growth and the installed base, are much more important than how many devices the company can sell in a given 90-day period. In addition to improved profitability, we also believe the transparent nature of this revenue stream will demand an expanded price-to-earnings multiple as segment sales grow’.”

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Disclosure: At the time of publication, we are long Apple. We wrote this article ourselves, and it expresses our own opinions. We are not receiving compensation for creating this article (other than from TheStreet) and have no business relationship with any company whose stock is mentioned in this article.