These 4 Fintech Stocks Are Gaining Investors’ Attention Right Now
Fintech stocks have been growing in popularity in the stock market over the past few years. The financial technology industry has caught the attention of many investors as we are shifting to a cashless society. In fact, the transition accelerated during the pandemic. After all, many prefer using digital payment methods to reduce the risk of contracting the coronavirus via paper money. Thus, it is not surprising to see the rise of fintech stocks.
No doubt, the race to the digitization of financial services has seen major banks such as JPMorgan Chase & Co (NYSE: JPM) dipping into their investment pots for digitalization. Yet another area of fintech that is seeing increasing attention would be cryptocurrencies. In particular, Coinbase Global (NASDAQ: COIN) reported second-quarter revenue of $2.23 billion, handily beating estimates of $1.78 billion. It is noteworthy that institutional trading volume now comprised 69% of total trading volume on Coinbase, up from 64% in the first quarter. You could say that the potential within the industry is massive. With all said and done, would a list of the top fintech stocks in the stock market today interest you?
Best Fintech Stocks To Buy [Or Avoid] Today
- Mastercard Inc (NYSE: MA)
- Paypal Holdings Inc (NASDAQ: PYPL)
- Square Inc (NYSE: SQ)
- Upstart Holdings Inc (NASDAQ: UPST)
Mastercard is a financial technology company that connects consumers, financial institutions, merchants, governments, and businesses across the world, enabling them to use electronic forms of payment. The company offers several types of cards while diversifying its customer base through strategic partnerships with key market players. These include electronic payment cards such as debit, credit, and prepaid cards.
Last month, the company announced a new Start Path global startup engagement program. This program is dedicated to supporting fast-growing digital assets, blockchain, and cryptocurrency companies. So, this would seek to expand and accelerate innovation around digital asset technology. As of now, seven startups have joined the program, including GK8, Domain Money, Mintable, SupraOracles, STACS, Taurus, and Uphold.
Mastercard’s second-quarter financial update has also surpassed expectations. Its revenue came in at $4.53 billion, up by 35.6% year-over-year. Meanwhile, its net profit totaled $2.07 billion or $2.08 per share. This compares with $1.42 billion or $1.41 per share in the previous year’s quarter. Overall, the company is in a healthy position with the recovery of consumer spendings across the board. With all these in mind, would you consider buying MA stock?
Paypal Holdings Inc
Next, we have the digital payments company, Paypal. Overall, many consumers around the world would be familiar with the company’s services. After all, its online payment services are in place across 200 global markets. Not to mention, the company now serves over 375 million consumers according to PayPal. PYPL stock has risen over 45% within the past year.
In July, Paypal announced its second-quarter financial update. The company posted revenue of $6.24 billion, up by 19% year-over-year. Also, its payment volume grew by 40% to $311 billion. It is also noteworthy that its Venmo app, which began supporting cryptocurrencies in April, saw payment volume grow by 58%. Most of these can be attributed to the surge in online shopping during the pandemic. All in all, the company maintained its strong influence in the digital payment space as adoption increased.
The company is not resting on its laurels just yet. On Tuesday, the company announced that Venmo users can now automatically purchase cryptocurrency using cash-back earned from their card purchases. This feature allows its users to choose how they spend their cashback while allowing them to start exploring cryptocurrencies within the Venmo app. With the digital payment landscape constantly evolving, efforts to keep up with trends such as crypto adoption are important. Now, would you consider adding PYPL stock to your portfolio?
Another fintech darling among investors would be Square. The company’s software is used to empower businesses and individuals all over the world. The company also provides a cohesive commerce ecosystem that helps sellers run and grow their businesses. SQ stock has been trending upwards since the onset of the pandemic. It has almost doubled in price just within the past year.
One of the major news that has been shaking the fintech space is Square’s acquisition of Afterpay Ltd (OTCMKTS: AFTPF). The transaction is reported to be worth approximately $29 billion. This acquisition aims to enable the companies to better deliver compelling financial products and services that expand access to more consumers and drive incremental revenue for merchants of all sizes.
So, Square will now be able to incorporate Afterpay’s pioneering global buy now, pay later (BNPL) strategy to its Seller and Cash App ecosystems. This addition will strengthen the company’s growing networks of consumers around the world while supporting its consumers with flexible and responsible payment options. Given these exciting developments, would SQ stock be a top fintech stock to buy?
Upstart Holdings Inc
To sum up the list, we have the cloud-based lending platform, Upstart. Essentially, the company has an artificial intelligence platform that aggregates consumer demand for loans and connects it to its network of Upstart AI-enabled bank partners. Upstart’s platform uses sophisticated machine learning models to more accurately identify risk and approve more applicants than traditional credit-score-based lending models. Over the past year, UPST stock has risen by over 360%.
Recently, more and more financial institutions are adopting Upstart’s services. Last month, Associated Bank, a leading Midwest regional bank, adopted Upstart’s services that offer enhanced personal loan capabilities. The bank hopes to better serve its customers while staying within the bank’s risk parameters with Upstart’s AI lending platform.
On top of that, Telhio Credit Union, a Columbus-based credit union serving members across Ohio, also partnered with Upstart to provide personal loans. With Upstart’s AI platform, Telhio will be able to improve credit access based on true risk based on over 1,000 variables without the overreliance on the traditional credit score. Hence, allowing Telhio to better support its members and the communities it serves. With the company’s lending platform seeing an increase in popularity among financial institutions, would you consider investing in UPST stock?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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