financialtreat – will explain about Fintech Stocks: 6 Best Fintech Stocks to Buy in 2022 that you will get in the following article. let’s look at this article carefully!
Despite the rise of technological innovations like the internet and smartphones, many consumers still turn to cold hard cash to make purchases. A recent survey found that physical cash is still used in 19% of payments and that the average American has $74 worth of bills in their wallet at any given time.
But that’s slowly started to change in recent years. The use of cash for payments has declined from one-third of all payments made back in 2017. And it’s very likely that the global pandemic has helped to accelerate consumers’ desire to use digital payment systems.
Enter the financial technology (fintech) industry. Fintech companies are revolutionizing how consumers pay our favorite coffee shop for a latte, how we split the check after a night out with friends, have allowed us to buy digital cryptocurrencies, and so much more.
The fintech market is expected to nearly triple in size over the next 10 years and it’s creating a massive opportunity for publicly traded companies and investors alike. That’s why we’re highlighting 10 of the best fintech companies that should be on your investment radar.
6 Top Fintech Stocks of 2022
- PayPal Holdings
- Apple (with Goldman Sachs credit card; Apple Pay)
- MercadoLibre (PayPal holds a stake)
Price: $83.38 (as of close Jun 6, 2022)
You’ve probably seen Square’s payment terminals at some of your favorite restaurants, local bookstores, and many small businesses. The company’s payment terminals and its online payment processing system make it easy for companies to collect and manage payments.
But Square is much more than just a payment terminal company. This fintech leader also has an incredibly popular peer-to-peer (P2P) payment app called the Square Cash App that makes splitting the bill or collecting your roommate’s monthly rent payment as easy as sending a text.
Square’s Cash App more than doubled its profits in the first quarter of 2021 and it now has an impressive 36 million users. Now Cash App users can buy and sell bitcoin through the app—a huge move that’s already paying off. Revenue generated through bitcoin sales in the Cash App skyrocketed elevenfold in the first quarter of 2021!
With the company already an established player in the digital payments space—and its Cash App already a leading P2P app and crypto exchange—it’s becoming crystal clear that Square will be a fintech leader for years to come.
Investors are taking notice of the company’s fintech success and have pushed up Square’s share price by an astounding 248% last year.
PayPal Holdings, Inc
Price: $86.81 (as of close Jun 6, 2022)
One of the most recognizable names in the online financial services industry is none other than PayPal. You might recall that the company got its start back when eBay (Nasdaq: EBAY) launched one of the first e-commerce websites in the United States. Since then it has grown into a fintech juggernaut.
PayPal has more than 360 million active users, processed $199 billion in total payment volume (TPV) on its platform in 2020, and has successfully tapped into the P2P space with its popular Venmo app.
Like Square’s Cash App, Venmo has become an important tool in PayPal’s fintech services lineup and is helping the company tap into the lucrative cryptocurrency buying and selling market, helping it to compete with Coinbase.
Through organic growth and several key acquisitions—including Zettle and Honey—PayPal is one of the dominant fintech companies. And there’s no sign that it’s slowing down. PayPal recently said that it’s working on a digital wallet that could help the company expand even further into this market.
The company’s stock spiked 116% in 2020 and its current expansion into bitcoin buying/selling through its Venmo app should help drive this company forward in the coming years.
Price: $146.14 (as of close Jun 6, 2022)
Apple may not come to mind when you think of fintech companies, but this tech leader has made a huge push into the financial services and technology markets that investors would be unwise to ignore.
First, the company’s Apple Pay app allows users to easily use their iPhone and Apple Watch to sync their credit or debit cards to the app to easily pay merchants electronically and send money to friends.
Apple has always been very smart about keeping stock customers tethered to its vast ecosystem and that’s helped the company establish payment data on its 1 billion active iPhone users through their Apple accounts. This makes it nearly seamless for its users to use Apple Pay at payment terminals and websites.
Additionally, Apple took a big step further into finch service when the company launched its own credit card back in 2019, the Apple Card, in partnership with Goldman Sachs (GS). The card links to Apple Pay and Apple calls it “a credit card designed for iPhone.”
Apple doesn’t earn most of its revenue from fintech, but investors should consider the company a strong fintech play as the tech company continues to expand its influence in the space through Apple Pay and the Apple Credit Card.
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Lots of new investors take chances on long shots instead of buying shares of great companies. I prefer businesses like Amazon, Netflix, and Apple — they’re all on my best stocks for beginners list.
There’s a company that “called” these businesses long before they hit it big. They first recommended Netflix in 2004 at $1.85 per share, Amazon in 2002 at $15.31 per share, and Apple back in the iPod Shuffle era at $4.97 per share. Take a look where they are now.
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Price: $803.99 (as of close Jun 6, 2022)
MercadoLibre is an Argentina-based e-commerce company that created a payment platform, Mercado Pago, that can be used both on its own e-commerce site and on other platforms.
Payments made through Mercado Pago have exploded over the past few years. Nearly 2 billion transactions were conducted through the company’s financial services platform, up more than 1000% between 2015 and 2020.
MercadoLibre got a vote of confidence in 2019 when PayPal invested $750 million in the company. With the fintech company’s stock up nearly 200% in 2020, it’s clear that investors view MercadoLibre as a rising star in this industry as well.
Read more financial service:
- How Crowdfunding Works in The Development of Your Business Venture
- Type of Fintech, Evolution of Technology-Based Financial System
Price: $212.94 (as of close Jun 6, 2022)
No list of fintech stocks would be complete without one of the leading payment processing companies of all time. In 2020 the company processed 140 billion transactions on its platform and the company’s recent moves into blockchain technology mean that Visa is setting itself up for the future of payments.
Blockchain technology, which is a decentralized ledger that allows anyone to view and keep track of transactions, is expanding quickly into fintech as a secure and efficient way to reconcile payments.
Visa recently began using Ethereum’s blockchain to easily convert digital currency into fiat currency. The company has partnered with Anchorage, a digital asset bank, to make this happen and the result will be faster transactions, more transparency, and even more influence for Visa in the fintech space.
Blockchain technology will be worth $395 billion by 2028—up 6,700% from 2021!—and Visa’s early moves should help the company benefit from its growth in the coming years.
Price: $360.14 (as of close Jun 6, 2022)
Like Visa, Mastercard makes its money from processing the payments on its financial network and charging a transaction fee from those payments. Small fees add up fast, especially when the gross dollar volume processed on Mastercard’s platform totaled $6.3 trillion in 2020.
Mastercard collects fees from fintech services in much the same way it does through traditional payments. But the company has also expanded into blockchain technology as well to offer new types of services to its clients.