Fintech companies are completely changing the way we manage our money. New financial technology has made it easier than ever to pay people back, borrow money, and invest money. We’ve rounded up some of the top fintech stocks on the market right now to add to your investment portfolio.
PayPal is arguably the world’s leading online payment service. By the end of 2020, there were 377 million active PayPal accounts, and that number is only going up.
Many people use PayPal to make personal payments, and it’s also a great way for small businesses to manage their sales. However, it’s also a popular way to pay when shopping on e-commerce websites. This is because PayPal keeps your banking information safe. Instead of having to provide your credit card information every time you buy something online, you can connect to your PayPal account. PayPal processes these transactions securely.
One of the things that makes PayPal stand out from other fintech companies is their portfolio of acquisitions. Over the years, they have acquired more than 20 relevant companies that offer financial services.
PayPal’s growth mindset has been very successful this past year. During the pandemic, many consumers started shopping online more often and using digital payment tools.
The company’s revenue grew consistently over the past several years, and this has been reflected in their stock performance. However, there’s still even more room for PYPL stock to grow as the platform brings in more customers.
Zuora is a software program that businesses can use to manage subscription services. The software offers billing tools and metrics to help consumers stay on top of payments.
Zuora stock has been growing quietly for the past year. They have managed to beat their earnings and revenue expectations, but have still flown under the radar when compared to other fintech companies.
Some investors think that Zuora could be undervalued, especially considering the stability of their earnings numbers over the past year. However, growth has been relatively slow because of a lack of new enterprise clients. Many companies have hesitated to switch to a subscription model during this difficult economic time.
However, the pandemic will likely end later this year, and the economy is already improving. This means that there could be plenty of room for growth in the future.
Fiserv is an established fintech stock with a full portfolio of products for financial institutions. They work with banks as well as merchants and payment processing companies. Their products include payment processing services, online banking, loyalty programs, fraud risk protection, and more.
The company is based in Brookfield, Wisconsin and has been in business since 1984. Many of Fiserv’s products have become business essentials over the years, especially for both digital and brick-and-mortar retailers.
One of their most popular products is their Clover bundle for small businesses. It is a streamlined POS system that integrates with hundreds of apps. The system can process payments, manage rewards accounts, and much more.
Green Dot is another fintech stock with a long history. They are known for launching one of the first pre-paid debit cards back in 1999. The company also offers mobile banking products, including a high yield savings account option. On the business side, Green Dot offers banking as a service (BaaS), tax services, and payroll services. Integrated bank charter services are becoming an increasingly important part of Green Dot’s income.
Major companies like Apple and Uber use these services. BaaS allows large companies to offer banking products like branded credit cards and peer-to-peer payments without actually operating as a bank.
Fintech companies have been incredibly successful over the past year. As the world moves away from cash and towards digital payments, there’s plenty of opportunity for these stocks to grow even more. Now is a great time to add these fintech stocks to your portfolio, before they get too expensive.