Check Out These Fintech Stocks Pioneering The Future Of Finance
Fintech stocks are growing in popularity in the stock market today. This should not come as a surprise as we are shifting towards a cashless society. Some fintech services allow customers more convenient banking and financial services. Other fintech tools simply allow banks and other traditional financial institutions to streamline their overall operations.
In fact, the technology is disrupting traditional banking and banknotes as many of us reduce the use of banknotes due to fears of virus transmission. With this megatrend, you can almost say for sure that the future of financial services would be cashless. With the emergence of cryptocurrencies, online wallets, and even the existing credit and debit cards, it’s evident that fintech companies are harnessing technology to provide faster and more reliable services for everyday use. Therefore, investors have been on the lookout for top fintech stocks to buy in the stock market.
There’s no doubt that this space is heating up fast. From online payment for goods and services, peer-to-peer (P2P) payment to trading stocks online, all can now be done from your palm. If anything, fintech involves greater automation and is typically more user-friendly. Having said that, if you believe that you can find financial success with some of the top fintech stocks, do you have the following names on your watchlist right now?
Best Fintech Stocks To Watch Right Now
- SoFi Technologies Inc. (NASDAQ: SOFI)
- Upstart Holdings Inc. (NASDAQ: UPST)
- Paysafe Ltd. (NYSE: PSFE)
- PayPal Holdings Inc. (NASDAQ: PYPL)
- Square Inc. (NYSE: SQ)
SoFi Technologies
SoFi Technologies is an emerging consumer and business-facing fintech disruptor. The company aims to be the first complete one-stop-shop for all things finance through its app. On the SoFi platform, it helps you “save, spend, earn, borrow, invest, and protect” your money all in one app. Considering most consumers use more than one financial institution to do all these, it’s becoming apparent to many that how SoFi could be a lucrative investment should the execution be done correctly.
Despite the recent downtrend in SOFI stock, many analysts see the stock’s weakness as a good buying opportunity. For one, that’s because the product is growing in popularity and the expansive set of services it offers. According to SimilarWeb, the download volume of the SoFi app has surged considerably in recent months. Not to forget, the company has strengthened its board of directors over the past three months with the additions of former Twitter CEO Dick Costolo, former Goldman Sachs President Harvey Schwartz, and Ruzwana Bashir, the founder, and CEO of Peek.com. I’m not sure about you but it appears to me that the company is a top fintech stock to watch right now.
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Upstart
Personal loans have gained massive popularity in recent years, and Upstart is a company that is thriving on that trend. For those unfamiliar, Upstart is a growing online leading platform that utilizes artificial intelligence to automate the lending process. With the company’s platform, banks can provide personal loans using non-traditional variables like education and employment to predict creditworthiness. Upstart’s platform uses sophisticated machine learning models to more accurately identify risk and approve more applicants than traditional credit-score-based lending models.
What’s more impressive is that the company has already achieved profitability. Upstart reported a net profit of $6 million in 2020, making it one of the few profitable fintech companies. That said, an investment in Upstart stock could prove to be extremely rewarding. With more predictive underwriting models and lower fraud rates delivered by the platform, the potential for Upstart to keep growing is enormous. With its new auto-loan platform, Upstart could double its revenue this year. Considering all these, would investing in UPST stock now be a profitable move?
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Paysafe
Paysafe is a leading specialized payments company that at first glance offers similar services to PayPal. However, one thing that separates Paysafe from some of the digital payment providers is its adoption of iGaming. What many saw as a niche and risky industry to be in, Paysafe saw it as an opportunity. And now, the company’s digital wallet serves pretty much all forms of digital gambling. Given all these, I’m not surprised David Tepper initiated a new position in the company earlier this year.
Despite the relatively flat price movement, there’s a lot to be bullish on this company’s growth prospect. As you may be aware, the company recently announced an expanded partnership with FOX Bet. Paysafe will provide digital wallet and electronic cash products for the online sports betting platform. It’s no longer a secret that the iGaming sector is a segment you would want to bank on if you are a prospective investor. It is also worth mentioning that the company has notable clients including Amazon’s (NASDAQ: AMZN) Twitch and Bet365. With the potential growth from the iGaming sector, is PSFE stock poised to bring big returns?
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PayPal
Although PayPal is known for its P2P payment platform, the fintech giant is much more than that. PayPal’s network currently caters to over 392 million consumers and merchants across the globe. Recently, the company has also expanded its services to e-commerce platforms, forming partnerships with corporations across the globe. Investors interested in PYPL stock should mark their calendars for July 28, the date the company is slated to report its second-quarter results.
If anything, PayPal seems to be firing on all cylinders now. On the financial front, the company saw green across the board in its latest quarter fiscal posted in May. Specifically, PayPal posted massive year-over-year gains of 1,205% in net income and 1,214% in earnings per share. The company also saw its total revenue for the quarter increase by 30% over the same period, adding up to over $6 billion. When you pair this with the vast array of expansions to its portfolio this year, would you consider an investment in PYPL stock ahead of its second-quarter earnings?
Square
Square is no doubt one of the best fintech stocks in the stock market today. It is a company that builds tools to empower businesses and individuals all across the globe. 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.
Not to mention Square’s Cash App continues to bring big rewards to its shareholders. With more millennials adopting digital wallets at an unprecedented pace, there is a huge growth runway for the company. 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 users. With the current shift towards contactless payment methods, Square’s services could be looking at long-term growth. Its history of innovation could suggest that the best days of SQ stock are still ahead.
