Deutsche Bank has initiated coverage of Boku Inc (AIM:BOKU), the payments technology firm, with a “buy” recommendation and a target price of 320p, well above the current price of 207p.
The bank highlights the fast-changing landscape of global payments, where local payment methods such as mobile wallets and account-to-account transfers are overtaking traditional cards and cash.
This shift is particularly strong in mobile-first regions where credit card use remains low. Deutsche Bank notes that digital payments made up around two-thirds of e-commerce transactions in 2024 and expects this to rise to nearly 80% by 2030.
Meanwhile, the global e-commerce market itself is projected to grow at an annual rate of 8%, reaching $10.8 trillion by the end of the decade.
For merchants looking to tap into this growth, adapting to local payment preferences is crucial.
Boku, which helps businesses accept these local payment methods, stands to benefit significantly from this trend.
Deutsche Bank’s initiation suggests that Boku is well-positioned to capture a growing share of the global payments market as digital payments expand and consumer preferences evolve.