Wed. Apr 24th, 2024

3 Fintech Stocks to Watch Out For

Unless you’ve been living under a rock for the last few years, you have probably seen the term fintech tossed around by news media.

It’s short for financial technology, and it represents a revolution in finance and banking. Even if you haven’t heard of the term, you almost certainly know the names of some of the companies that have exploded in recent years through fintech innovations.

“Fintech matters because finance matters, and technology is the enabler for each individual to maximise their financial lives,” Melanie Palmer wrote for The Wealth Mosaic. “For me fintech enables us to have a better understanding of our financial world to be able to make more informed, conscious decisions and take total financial control.”

Examples include DIY-investing apps like Robinhood and Stash, which have exploded in popularity since the onset of the pandemic, as well as cryptocurrency exchanges like Kraken, and pseudo banks like Chime. The biggest fintech company in America, Stripe, helps process online payments for small businesses as well as tech giants like Zoom and even Microsoft.

The company was worth $35 billion last year, but has already skyrocketed since then to a $95 billion valuation, making it the second-most valuable startup in the world, surpassed only by TikTok.

So yes, Forex Signals providers is here to stay and it represents an incredible opportunity for investors. The fintech industry has already transformed finance and banking in a process that continues to accelerate, especially since the pandemic.

“This is an incredibly exciting time because fintech is changing the finance industry to be more consumer-centric,” said Bardya Ziaian, an entrepreneur within the fintech industry and current CEO of Sittu Group. “Everything these days is about convenience and personalization for the consumer, so I think we can expect fintech to continue its explosive growth in coming years.”

If you want to up your investing game, you should include some fintech companies in your portfolio.

MercadoLibre

If you don’t speak any Spanish, MercadoLibre translates as “free market.” The company is a major player in both the fintech and eCommerce industries. Investing in this superstar company based in Latin American is likely to deliver solid returns on investment.

Digital payments and eCommerce are rising fast in Latin America, especially in Mexico, Argentina, and Brazil. If you’ve been paying attention to that marketplace in the US and Canada, you know that it has experienced exponential growth since the start of the pandemic.

That trend continues in Latin America, where MercadoLibre’s online platform brings in more business than all its competitors. It also now offers services like logistics, financial services, and advertising.

Affirm Holdings Inc.

At Affirm, customers can finance their purchases online during the sale while avoiding the stress of hidden fees. The company now has more than 5 million customers, making it a large and growing business with no end in sight.

Jim Cramer supports the buying of Affirm stocks, spotlighting the company in the lightning round segment of his show. Affirm has a dominant position in the BNPL industry (Buy Now Pay Later), and was named a stock to watch by Nasdaq as well for its complex underwriting abilities and superior merchant integrations.

Square

This last one should come as no surprise. Square is featured on most lists of smart fintech stocks, as the company continues to experience solid growth.

A California-based fintech company that has been around for many years, Square now offers many kinds of digital payment options and finance services. The company’s Cash App has about 40 million active users, and works with many businesses both huge and tiny.

Company shares have seen massive gains over the last year, and the company plans to acquire Australian fintech firm Afterpay for $29 billion.

Fintech companies represent a golden opportunity for investors, and whether you choose to invest in these companies, or others, it’s a chance for ROI you don’t want to miss.