4 Hot Fintech Stocks For Your Watchlist Right Now
As the world continues to evolve with technology, fintech stocks continue to draw traction among investors in the stock market. For those unfamiliar with the term, fintech is used to describe technology that aims to improve and automate the use of financial services. Hence, by leveraging specialized software and algorithms, fintech aims to help companies, business owners and consumers better manage their financial operations. In recent years, you must have heard of cryptocurrencies such as bitcoin. Well, many consider cryptocurrencies to be part of fintech as they are slowly gaining acceptance around the world as a legitimate currency.
When a fintech juggernaut such as PayPal Holdings (NASDAQ: PYPL) starts to adopt cryptocurrencies, it could be a sign of bigger things to come. As of last month, users in the U.K are able to buy, hold and sell cryptocurrencies such as Bitcoin and Etherium directly from their PayPal account. Could Bitcoin and other cryptocurrencies be a viable payment option for goods and services worldwide one day? Only time will tell. With all said and done, do you have a list of the top fintech stocks in the stock market today?
Best Fintech Stocks To Watch Today
- Visa Inc (NYSE: V)
- Mastercard Inc (NYSE: MA)
- Upstart Holdings Inc (NASDAQ: UPST)
- Payoneer Global Inc (NASDAQ: PAYO)
Visa
Visa is an American multinational financial services corporation headquartered in California, U.S. Essentially, the company facilitates electronic funds transfers throughout the world through Visa-branded credit cards, debit cards, and prepaid cards. Its transaction processing network, VisaNet, facilitates authorization, clearing, and settlement of payment transactions. V stock has risen more than 20% over the past year.
Yesterday, the company announced its fiscal fourth-quarter earnings. Visa posted net revenue of $6.6 billion, an increase of 29% year-over-year. Also, its GAAP net income came in at $3.6 billion or $1.65 per share. This exceeds analysts’ expectations of $1.54 per share according to Refinitiv data. For most parts, these encouraging numbers are driven by a recovery in travel and increasing online spending. Not to mention, an improving global economic picture also contributed to higher volume growth.
In fact, we saw its total payment volumes rising by 17% on a constant dollar basis compared to the prior year’s quarter. Meanwhile, the number of transactions processed by Visa increased to 45.3 billion, an increase of 21% year-over-year. Well, the company believes that the recovery in cross-border travel will continue throughout fiscal 2022. With that in mind, would you consider adding V stock to your watchlist?
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Mastercard
Another top fintech company on many investors’ radars now would be Mastercard. Put simply, the company is a tech company that connects consumers, financial institutions, merchants, governments, and businesses across the world. It does so by enabling the usage of electronic forms of payments. Besides that, the company also provides integrated offerings such as information and analytics services, consulting, and reward programs.
On Monday, Mastercard announced that any bank or merchant on its vast network can soon offer crypto services. This includes bitcoin wallets, credit and debit cards that earn rewards in crypto while allowing digital assets to be spent. The announcement could lead to a significant expansion in the ways people earn and spend cryptocurrencies. To make this possible, the company will be partnering with Bakkt Holdings (NYSE: BKKT), a crypto firm recently spun off by Intercontinental Exchange (NYSE: ICE). Bakkt will be responsible for custodial services for those who sign up.
As some of you may be aware, Mastercard will be announcing its third-quarter financial report on Thursday. Analysts are expecting the company’s sales to increase by 29% year-over-year to $4.95 billion. Besides that, its earnings per share are expected to be $2.19, 37% higher year-over-year. So, keen investors will be keeping close tabs on the company this week. All things considered, would MA stock be one of the top fintech stocks to watch right now?
Upstart
Following that, we have the cloud-based artificial intelligence (AI) lending platform, Upstart. In detail, the company’s platform aggregates consumer demand for loans and connects it to its network of Upstart AI-enabled bank partners. Through its multi-tenant cloud application, it can integrate seamlessly into a bank’s existing technology systems. UPST stock skyrocketed by more than 1000% over the past year.
Earlier this month, the company announced Upstart Auto Retail software that includes AI-enabled financing. The cloud-based solution will enhance the car buying experience for both consumers and dealerships. Furthermore, this new software will provide access to Upstart-powered auto loans as well. Thus, dealerships can instantly offer affordable financing to more of their customers.
On top of that, Berkshire Hills Bancorp (NYSE: BHLB) has also recently entered into a partnership with Upstart. The bank will expand consumer lending options through a digital experience that is enabled by Upstart’s lending platform and referral network. This would also make credit more accessible, which aligns with its focus on reaching more people in its community. Overall, Upstart’s offerings seem to be in hot demand. Given these developments, do you have UPST stock on your watchlist?
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Payoneer
Last but not least, we have the global payment services company, Payoneer. It helps people and businesses to send money and make payments around the world. In addition, it offers a suite of services that includes cross-border payments, physical and virtual Mastercard cards, risk management, and other services.
Recently, the company announced a new partnership with Coupang (NYSE: CPNG), one of the largest e-commerce companies in South Korea. The collaboration aims to provide hundreds of thousands of sellers across the world with the opportunity to expand and sell its products in South Korea. By leveraging Payoneer’s technology and expertise to enhance Coupang’s payment capabilities, cross-border businesses will be more seamless for the sellers on Coupang.
Financially, Payoneer has also been trending in the right direction. During its first quarter as a public company, its revenue increased 42% to $110.9 million. Moreover, the volume of transactions increased to $13.6 billion, up 29% year-over-year. As the company continues to execute its long-term strategy to be the world’s go-to-partner for digital commerce everywhere, its upcoming third-quarter earnings report will be an important one. So, would you consider investing in PAYO stock ahead of its earnings report on November 10?
