Do You Have These Fintech Stocks On Your Radar Right Now?
Fintech stocks can be an intriguing segment of the stock market. Over the past few years, the hype surrounding the industry has been overwhelming and rightly so. The global adoption of financial technology has changed the way people make transactions in their daily lives today. In light of this, it would be natural that companies that offer financial technology services would see astronomical levels of growth during the pandemic. Now that the economy is slowly reopening, the use of fintech services may also change. Hence, there may be mixed sentiments among investors within the fintech space.
For instance, Upstart (NASDAQ: UPST) announced better-than-expected earnings for its latest quarterly report. Total revenue was $228 million, an increase of a staggering 250% year-over-year. Meanwhile, GAAP net income was $29.1 million, up from $9.7 million in the third quarter of 2020. However, UPST stock plunged more than 15% in premarket trading. Admittedly, this may not be surprising considering the run up in the stock over the last few weeks. Well, if you’re looking for long-term gains, the current dip in the fintech space could offer some interesting opportunities right now. With that in mind, here are some of the top fintech stocks in the stock market today.
Best Fintech Stocks To Watch Right Now
- Visa Inc (NYSE: V)
- Square Inc (NYSE: SQ)
- Affirm Holdings Inc (NASDAQ: AFRM)
- Paysafe Ltd (NYSE: PSFE)
Visa
First, let us have a look at the payments technology company, Visa. Put simply, it provides digital payments across more than 200 countries and territories. The company connects consumers, merchants, financial institutions, businesses, and government entities to electronic payments. Most people would be aware of its Visa-branded products that include credit, debit, prepaid and cash access programs.
Last Thursday, Visa’s Cybersource announced it has joined the International Air Transport Association (IATA) Financial Gateway. Cybersource will help airlines streamline commerce and payment efficiencies, manage fraud, maximize revenue and innovate at a faster pace. Hence, it will also eliminate the need for multiple products from different brands, saving costs and reducing operational delays.
On top of that, the company also launched Visa Eco Benefits. This is a new package of sustainability-focused benefits for account issuers. So, cardholders will better understand the impact of their spending on the environment while encouraging sustainable consumption and behaviours. For now, the bundle will be available first in Europe and then rolled out globally during the next year to Visa’s clients. With all these in mind, would you add V stock to your watchlist?
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Square
Another top fintech name would be Square. For those unfamiliar, the company is a commerce ecosystem that allows sellers to accept card payments. It has two reportable segments, Seller and Cash App. Its Cash App has been a hit among consumers as it allows its users to send and receive money at any time and anywhere.
Recently, Square announced its third-quarter earnings. The company reported overall sales of $3.84 billion, up by 27% year-over-year. Meanwhile, gross profit which includes fees taken from its Cash App and Seller businesses was $1.13 billion, an increase of 43% from the prior year’s quarter. The slower growth of its Cash App should not come as a surprise given the faster growth during the height of the global pandemic. So, should this deter you from investing in SQ stock? Some investors may even view this as an opportunity to build up a position in the stock.
In addition, Square announced two new tools in the U.K. last month to help businesses grow their sales and engage customers. The two tools are Square Marketing and Square Loyalty. On one hand, Square Marketing helps businesses reach customers at the right time and all in one place. On another hand, the Square Loyalty program would help turn one-time visitors into regulars and increase repeat visits. Now, the main question would be, do you think SQ stock will have more room to grow?
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Affirm
Affirm provides a platform for digital and mobile commerce. By leveraging its tech-driven payment networks and partnerships with originating banks, consumers can pay for a purchase over time. Also, consumers can use its application to open a savings account, and access a personalized marketplace.
Late last month, Affirm partnered with American Airlines (NASDAQ: AAL) to allow travelers to have added flexibility to purchase flights and pay over time. According to the latest Affirm Consumer Spend Report, more than half of consumers would rather take a getaway than have a traditional family get-together this holiday season. So, if customers choose to checkout with Affirm, they will split the total cost of flights over $50 into monthly payments.
As fintech adoption continues to sweep the world by storm, Affirm will be well-positioned to benefit from this megatrend. American Airlines now joins over 29,000 Affirm merchant partners that include Walmart, Target, Ikon Pass and many more to offer customers flexible payment options. Thus, should there be any dip in the company stock could be an interesting investment opportunity. Given that the company is announcing its first quarter earnings report after the market closes today, it may not be the worst idea to keep close tabs on AFRM stock now.
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Paysafe
Last but not least, we have the digital payments company, Paysafe. In detail, the company focuses on iGaming, including online betting related to sports, esports, and other casino games. Investors should note that Paysafe is not directly competing with the likes of Paypal (NASDAQ: PYPL) and Square. Instead, it is a clear leader in online gaming transactions with several compelling partnerships.
Last week, the company announced its latest milestone in its strategy to become a fully cloud-based payments provider. It will be migrating its digital wallets, Skrill and NETELLER, and all associated business services to Amazon Web Services (AWS). The move would enable Paysafe to improve its efficiency and innovations behind its consumer solutions while reducing the deployment time of its merchant integrations.
Furthermore, the company announced earlier this month that its platform is live in Colorado and New Jersey with SuperBook™ Sports. Players wagering with SuperBook Sports’ online and mobile sportsbook will be able to select from a range of traditional and alternative payment methods. All things considered, would PSFE stock be a top fintech stock to watch right now?
