3 Top Fintech Stocks To Watch In Stock Market Now
In an increasingly digital world, financial tech (fintech) continues to grow in importance by the day. Because of this, fintech stocks could also be increasingly prominent among investors’ stock market watchlists now. For one thing, fintech is mostly responsible for bringing the finance industry into the digital realm. Understandably, this would serve to benefit the fintech market amidst a global pandemic. We just have to look at the Robinhood IPO filing to see that the online brokerage more than tripled its revenue in 2020 from the year before.
Whether it is the wave of a card or a tap on a smartphone app, fintech makes things easy. Simply put, as consumers continue to experience the pure convenience brought by the fintech industry, general adoption trends could persist. Not to mention, we are currently amidst bouts of economic recovery in the U.S. now. With consumers eager to spend their saved-up stimulus cash throughout this reopening trade, fintech services would be in demand. This would see fintech stocks such as Evertec (NYSE: EVTC) and Upstart (NASDAQ: UPST) kicking into high gear. On one hand, Evertec primarily processes transactions, enabling sales and e-commerce merchants in Latin America as e-commerce spending surges. On the other hand, Upstart’s AI-based lending solutions can lead to higher approval rates and lower interest rates for consumers.
Not to mention, companies like Workday (NASDAQ: WDAY) could also be looking at busy times ahead. Its on-demand financial management and human capital management services would be vital as more Americans are getting employed. Evidently, the weekly jobless claims reportedly hit a new pandemic-era low last week at 364,000. Overall, with the economy booming, investors could be eyeing the top fintech stocks in the stock market today. If you are one of them, here are three to watch.
Best Fintech Stocks To Buy [Or Sell] Now
- Mastercard Inc. (NYSE: MA)
- Square Inc. (NYSE: SQ)
- PayPal Holdings Inc. (NASDAQ: PYPL)
Mastercard Inc.
To begin with, we will be looking at financial services company, Mastercard Inc. The New York-based fintech giant is among the leading names in the industry now. Most would be familiar with its debit and credit card services. Through its secure data networks, the company helps consumers and organizations alike with most of their transaction-related needs. For a sense of scale, the company boasts connections and operations spanning across over 210 countries and territories. Now, with MA stock gaining more than 20% over the past year, would it still be worth investing in?
Well, if anything, Mastercard continues to build partnerships and expand its massive portfolio. As of last week, the company is currently working with FCLTGlobal, a non-profit organization backed by leading companies globally. Now, FCLTGlobal mainly develops research and practical tools to help drive long-term value creation for companies. In the case of Mastercard, the company is looking to support and bolster its networks for long-term sustainable growth through this partnership. On top of that, the company is also reportedly working with Eazy Financial Services, a Bahrain-based fintech. The duo is now working to provide digital payment tools and financial services to Bahrain’s small and medium-sized enterprises (SMEs).
Overall, Mastercard does not appear to have plans of slowing down anytime soon. We can see this as the company is expanding its partnership networks while increasing its general market reach as well. With Mastercard looking to keep up with the competition, would you consider MA stock a top buy now?
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Square Inc.
Following that, we have fintech company Square Inc. In brief, the company operates via a cohesive commerce-enabling ecosystem, helping merchants start, run, and grow their digital businesses. It does so via a combination of software and hardware that turn mobile and computing devices into powerful payment and point-of-sale solutions. Moreover, Square’s analytical tools empower sellers to make more informed business decisions overall. Namely, sellers can manage several aspects of their respective businesses through Square. This includes but is not limited to inventory, locations and employees, customer engagement, and sales growth.
On the consumer front, Square also offers its Cash App. Through the smartphone app, users have access to a variety of financial services. This ranges from transferring money to other Cash App users to even investing in stocks and Bitcoin. In fact, in the first quarter of 2021, Square’s Cash App ecosystem reportedly saw gross profit surge by 171% year-over-year. This adds up to about $495 million generated from over 35 million active users. With the current shift towards contactless payment methods, Square’s services could be looking at long-term growth. Because of all this, I could see investors eyeing SQ stock which is currently up by over 530% since its pandemic era low.
By and large, Square continues to gain momentum thanks to the current industry tailwinds. This is evident as the company saw green across the board in its latest quarter fiscal posted back in May. In it, Square saw massive year-over-year surges of 266% in total revenue and 133% in earnings per share. Over the same time, the company’s net income also skyrocketed by over 136%. Given these impressive figures, will you be adding SQ stock to your portfolio?
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PayPal Holdings Inc.
PayPal Holdings Inc. is another top fintech player to look out for now. For the uninitiated, the company primarily services consumers via its online payments system. The likes of which span across 200 markets and cater to over 375 million users in the current global economy. Chances are if digital payment services are available in the region, so is PayPal. Given the wide reach of PayPal’s fintech offerings, PYPL stock could be another hot name on investors’ watchlists now.
Similar to our previous entry, PayPal’s answer to consumer financial service needs is its Venmo smartphone app. Aside from facilitating conventional digital cash transactions, Venmo also boasts crypto-related services. In detail, the company now allows users to seamlessly make payments using cryptocurrencies. While the market may not be too hot for digital currencies now, PayPal would be at an advantage should general adoption trends pick up.
On the operational front, PayPal is hard at work bolstering its wide array of offerings now. Earlier this week, the company announced the launch of its PayPal Zettle service. In short, Zettle serves as a digital point-of-sale solution, enabling SMEs to effortlessly sell across in-person and online channels. If anything, businesses of these sizes would rely heavily on such services as consumers get more comfortable with digital commerce. In the long-term, this would also stand to benefit both businesses and PayPal as well. While businesses could see an uptick in sales via newly established omnichannel services, PayPal would be serving more clients. In theory, with all these favorable market conditions in play, the company could be looking at exciting times ahead. Would you say the same regarding PYPL stock?
