Stocks of technology-driven financial companies or fintech stocks hold high growth prospects and are attractive to investors seeking long-term growth. The stocks of technology and fintech companies soared during the pandemic until the end of 2021. In 2022, the scenario started changing because of growing inflation and higher interest rate dampening investors’ spirits. The stocks lost some of their shine and failed to attract the premium that they enjoyed earlier. However, investors with a long-term vision of growth are still ready to repose their faith in the fintech companies transforming the financial sector. These companies provide innovative financial solutions like online payments, digitization of money, easier access to credit, and online bank and non-bank services.
Investors who have faith in the disruptive initiatives that can change the financial landscape in the future are ready to back the best fintech stocks that can help achieve their growth plans.
Here are some of the top fintech stocks that investors would keep close track of during the year.
Block Inc. (NYSE: SQ)
Block Inc., formerly Square, is a heavy-weight fintech company with a market cap of $65 billion in the digital payment space. The company has a broad and diverse customer base, including big corporations and smaller companies. With a focus on global expansion, Block is expanding its operations in new markets in other countries like the UK, France, Canada, and Australia. With more thrust on digital payments during the Covid19 pandemic that gained momentum over time, Block maintains its leading position in the fast-growing digital payments ecosystem. The company has sufficient exposure to cryptocurrencies through its subsidiary, Spiral, funding Bitcoin projects. In 2021, the Block’s share prices rose by an incredible 248% to qualify as one of the top fintech stocks.
Visa Inc. (NYSE: V)
Considered one of the most valuable companies in the world, Visa Inc is a giant in facilitating electronic transfers globally. Visa credit, debit cards, and prepaid cards have become a household name today. Without any second thoughts, anyone would agree that Visa is one of the most attractive fintech stocks to buy anytime. The company maintains a high growth rate by reaching out to 80 million merchants and recording 14% growth in 2021. The company invested $9 billion in the past 5 years to encourage wider use of digital payments. The company has started using Ethereum blockchain for converting cryptocurrency into fiat currency. The company’s partnership with Anchorage’s digital asset bank imparts more transparency to the transactions and makes speedier payments.
PayPal Holdings Inc. (NYSE: PYPL)
For more than two decades, PayPal has been a name that has become synonymous with digital payments. The company operates across 200 markets globally and has a customer base of 400 million merchants and consumers. The company’s stock is a prized catch for investors who do not consider it one of the best fintech stocks without any comparisons.
The consistent growth rate of 20% makes PayPal a massive advertisement for fintech stocks.
