Are These The Best Fintech Stocks To Buy Right Now?
Fintech stocks have been one of the most lucrative sectors in the stock market this year. This should not come as a surprise as the sector continues to benefit from the shift to digital payments, which accelerated during the pandemic. Besides digital payments, many consider cryptocurrencies to be part of fintech as they are slowly gaining acceptance around the world as a legitimate currency. Amid uncertainties surrounding the Omicron variant, we are witnessing a correction in the stock market and fintech stocks are not spared. Nevertheless, the fintech trend is one that would likely remain relevant in the foreseeable future. Not to mention, the industry also does not lack exciting developments that would pique the interest of investors.
For instance, we saw Square (NYSE: SQ) announcing yesterday that it will be changing its name to “Block”. The rebranding aims to highlight the company’s expansion beyond its payment business and into new technologies like blockchain.
This came just weeks after social media giant Facebook changed its name to Meta Platforms (NASDAQ: FB). Now, with the secular shift to digital and contactless payments, would it surprise anyone if fintech companies stand to benefit in the long run? With all said and done, it would do no harm in having a list of four top fintech stocks in the stock market today.
Best Fintech Stocks To Watch In December 2021
- Upstart Holdings Inc (NASDAQ: UPST)
- PayPal Holdings Inc (NASDAQ: PYPL)
- Fiserv Inc (NASDAQ: FISV)
- Visa Inc (NYSE: V)
Upstart
First, we have the cloud-based artificial intelligence (AI) lending platform, Upstart. For those unaware, the company’s platform aggregates consumer demand for loans and connects it to its network of bank partners. What’s interesting is that the company has built a configurable, multi-tenant cloud application that integrates seamlessly into a bank’s existing tech systems. For that, Upstart is unique in its own way that makes it stand out among the top fintech companies right now.
Last month, it was announced that BCU will be partnering with Upstart to offer AI-powered personal loans to more people. As one of the nation’s top 100 credit unions that serves over 300,000 members in the U.S. and Puerto Rico, BCU would be a huge addition to Upstart’s list of customers. So, Upstart will provide an all-digital personal lending experience to improve the financial wellness of more eligible BCU members.
On top of that, Upstart just came off a strong financial quarter last month. During its third quarter, the company reported revenue of $228 million, an increase of a whopping 250% year-over-year. In addition, its GAAP net income increased by 200% to $29.1 million. That said, UPST stock continues to slide over the past month. So, would you be buying UPST stock on a discount?
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PayPal
When looking at the fintech space, PayPal would be a go-to for many investors. Understandably so as the company currently caters to more than 400 million consumers in over 200 global markets. Given its size and reach of operations, investors could be watching PYPL stock right now. After all, its recent financial report had plenty of positives despite a weak fourth-quarter forecast.
For starters, the company did beat Wall Street estimates for its third-quarter profit with strong growth in total payment volume. PayPal’s earnings per share were $1.11 versus the expected $1.07 by Refinitiv. Meanwhile, its total payment volume rose 26% to $310 billion. Not to mention, PayPal also announced that it has partnered with Amazon (NASDAQ: AMZN) to allow the firm’s Venmo wallets in the U.S. to be accepted on Amazon’s websites and mobile app starting next year.
It is worth noting that the company announced yesterday that Wix (NASDAQ: WIX) merchants can now offer PayPal’s Pay Later features to its consumers. With businesses expressing optimism this holiday season, this would provide Wix e-commerce merchants with another way to help maximize this all-important time of the year. Given these considerations, could PYPL stock be a top fintech stock to watch right now?
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Fiserv
Following that, we have a global provider of payments and financial services technology solutions, Fiserv. Essentially, it operates through three segments, Merchant Acceptance, Financial Technology, and Payment and Networks. Similar to many fintech companies this year, FISV stock has been trading sideways. So, it would not be surprising that investors eyeing the fintech sector may be keeping tabs on FISV stock now.
In November, Fiserv announced the completion of its acquisition of BentoBox. BentoBox’s marketing and commerce platform delivers a seamless guest experience dedicated to accelerating growth and helping restaurants thrive. Naturally, this would further expand the company’s Clover dining solutions that enable nearly 200,000 restaurants to deliver unique diner experiences.
Besides that, Australia’s Bank of Queensland will also continue its technology modernization with a move to cloud-based debit card management with Fiserv. Leveraging the FirstVision platform, the bank can offer in-demand functionality that includes the ability for customers to add cards to their digital wallets and pay using wearables. With these exciting developments, would you be watching FISV stock?
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Visa
Visa is an American multinational financial services corporation headquartered in California. 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.
The company recently announced the launch of Visa Eco Benefits. This is a new package of sustainability-focused benefits for account issuers to encourage their cardholders to engage in sustainable consumption behaviors. It will first be available in Europe then rolled out globally next year. With this new offering, Visa continues to be at the forefront in driving sustainable commerce and climate action in the payments industry.
Furthermore, Visa’s Cybersource will also be joining the International Air Transport Association (IATA) Financial Gateway. The company aims to help airlines streamline commerce and payment efficiencies, manage fraud, maximize revenue and innovate at a faster pace. So, its global capabilities are now available to more than 290 airline members who are part of the IATA. With all these in mind, would you consider adding V stock to your portfolio?
