Fintech is the application of new technology in financial businesses. The new companies are developing digital payment-processing solutions to operate person-to-person payment applications.
Fintech includes Payment processing, Online, and mobile banking, Online and peer-to-peer (P2P) lending, Person-to-person payments, Financial Software, and Financial Services.
The top Fintech stocks in the market to invest in in 2022 are:-
- Block Inc.: The company’s market cap is $65 billion and one of the big players in digital payments. The company is now known as Square with customers from small operations to big operations for complex transactions. The company is expanding into new markets such as the U.K., Australia, Canada, and France. The company is also involved in cryptocurrency with its subsidiary such as Spiral, which builds, and funds Bitcoin projects.
- PayPal Holdings Inc.: The PayPal platform got more than 400 million consumers and the market is spread across 200 countries globally. The PayPal stock has been coined as one of the pure-play bets. PayPal is also launching Pay with Venmo on Amazon.com Inc. As per senior research reports, Paypal is expanding its market services in peer-to-peer payments, Venmo, crypto, and buy-now,pay-later.
- Visa Inc.: The stock is expanded to more than 80 million merchants with a 14% increase in 2021. The company is heavily invested in digital payments. Over the last 5 years, more than $9 billion has been spent on digital technology. The stock valuation of Visa is lower with a forward price-to-earnings ratio of 25 but the ROIC is high in comparison to other fintech services.
- Intuit Inc.: The revenue of the company grew to $2 billion in the recent quarter from $1.3 billion. The company projects $12 billion in sales for 2022 with a growth projection of 26% to 28%. The technology platform provides services such as TurboTax, QuickBooks, Mint, Credit Karma, and Mailchimp. The acquisitions of Credit Karma and Mailchimp have been best due to their strong growth in small and medium-sized businesses.
- Upstart Holdings Inc.: The online lending platform is equipped with artificial intelligence that partners with banks for improving the access to affordable credits. The company’s revenue, profits, and the number of banks and credit unions are tripled from last year’s initial public offering. In 2021, 250% of revenue growth was reported in the company. The company is in partnership with auto dealerships for the growth of its transaction volume. The UPST is more than 100% from the last year.
- Robinhood Markets Inc.: The brokerage company shook the retail investing landscape with more than 22 million funded accounts and more than 18 million monthly active users. The best fintech stocks to buy. Robinhood services such as retirement account offerings, cryptocurrency expansion, live customer support, recurring investing option, and allowing the investors to transfer their outside accounts. In the stock market, the participation of the retail investor is also improved.
- Amazon.com Inc.: The company also made its presence in the digital ecosystem by the partnership with Affirm Holdings Inc. for a strong foot in the buy now, pay-later market. The partnerships are playing a major role in the fintech market, the e-commerce giant is also partnering with Block and Intuit.
The other Fintech stock companies:-
- Goldman Sachs: The company known as the investment bank and wealth manager, transforming from 1% to a full-featured consumer bank. In 2019, the company became the only exclusive issuer of Apple’s credit card. The company also includes an investment platform and checking accounts. Goldman Sachs is transforming the company into a tech-focused to increase efficiency and reach the maximum consumer value. The gold standard of the company is to survive the turbulent markets with less cyclical fintech stock.
- Green Dot: One of the oldest fintech companies to pioneer the prepaid debit card. The company is losing to Square and PayPal but they are offering more innovative solutions. The company introduced a savings account with a 2% yield to Walmart Money Card customers. Apple, Uber, and Stash also use (BaaS) platform, i.e. banking-as-a-service model.
- MercadoLibre: One of the biggest e-Commerce giants in Latin America. They are also nicknamed Amazon.com. The company’s online Mercado Pago platform is the most fintech exciting outreach. The business processes billions of dollars every quarter. The company is also in partnership with PayPal in Latin America in the payments space.