** Analysts at Jefferies expect 2025 to be a strong year for Australia's payments sector

** Says the sector has underperformed since 2022 as markets priced in rising rates

** Brokerage feels the "tide has finally turned" for the sector after an initial rate cut by the Australian central bank, chooses Tyro Payments TYR.AX as top pick

** Says EML Payments EML.AX is at the early stage of a restructuring turnaround and is tracking ahead of yearly outlook

** After multiple years of underperformance, we think RBA's first rate cut is the catalyst for investors to revisit the sector - Jefferies

** Brokerage flags that Tyro has announced the launch of new verticals and sees more opportunities than downside from regulation change

** Sees plenty of growth opportunities in the U.S. for Zip ZIP.AX

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))