In the vivid landscape of investment opportunities, zeroing in on fintech stocks to buy will always remain relevant. The fintech sphere effectively merges traditional and novel financial practices, opening up a conduit to participate in the dynamic flow of digitized money management. With a current 2% stake in the $12.5 trillion global financial services revenue, the fintech sector is poised to increase its share to 7% by 2030; fintech stocks remain as lucrative as ever. This has led to the rise of fintech stocks to buy.
Yes, fintech is not immune to challenges as potential recessions, high-interest rates, and sticky inflation impact it. Yet, the global economy has consistently proven its mettle, bouncing back with vigor, and fintech stocks, especially some that may have slipped under your radar, are in a position to reap substantial long-term benefits.
Buckle up as we unveil three fintech stocks with colossal potential, ensuring your investment journey.
Despite cozying up to a 52-week low at $56.3, PayPal (NASDAQ:PYPL), a juggernaut in the digital payments and fintech arena, presents itself as an excellent long-term pick for the discerning investor. While the specter of burgeoning competition and a selloff has effectively cast shadows over its immediate outlook, diving deeper into its core business is indicative of a resilient and fortified entity. A sweeping user base of 431 million active accounts underscores its presence in the global payments ecosystem, revealing a compelling narrative.
Furthermore, the digital payment giant continues to ride the wave of eCommerce and digital payment adoption, manifesting an 8% jump in net revenues, along with an 11% leap in total payment volumes in the second quarter on a currency-adjusted basis. All in all, it’s one of those fintech stocks to buy.
Furthermore, PayPal has effectively rolled out its crypto token, establishing itself as the first major U.S. fintech stock to do so. It was one of the first movers in its niche to embrace blockchain technology, and the release of its stablecoin is a testament to its unwavering commitment to the industry. Moreover, tangible growth in branded checkout volumes, notably a hearty 6.5% in the second quarter, accelerating to an even greater 8% in July, points to a fintech entity that is not merely surviving but thriving amidst the tumult. Thus, it remains an intriguing chapter in the investment book, offering a narrative of stability and forward-thinking prowess.
Sailing steadfastly through the turbulence in its external environment, Marqeta (NASDAQ:MQ) delivers a distinct strategy in approaching tailored online payment solutions. Despite the scars from last year’s economic turmoil and aggressive rate hikes, it continues to grow at a rapid pace in a market projected to grow to a whopping $139.9 billion by 2030.
Remarkably, it’s not just its impressive forecast that crafts a halo of optimism around the business. Its recent acquisition of Power Finance opens a cascade of possibilities, unlocking new horizons for its clients and effectively stabilizing its fiscal journey.
Moreover, by extending its partnership with Block (NYSE:SQ), Marqeta has added another layer to its growth story. On top of that, it boasts partnerships with top tech players, including Uber (NYSE:UBER), and DoorDash (NYSE:DASH), indicative of its compelling performance in the fintech ensemble. Additionally, over the past consecutive quarters, the business has delivered double-digit growth in its top-line performance, with a 24% year-over-year bump in revenues in its most recent quarter. Also, based on analyst estimates, it could post a negative 33 cents EPS this year, edging toward the threshold of profitability.
From its roots nestled in the Netherlands to an expansive global footprint encompassing the Asia Pacific, Latin America, and Africa, Adyen (OTCMKTS:ADYEY) has effectively maneuvered through the burgeoning fintech landscape with prowess. For instance, every digital transaction at McDonald’s (NYSE:MCD) moves through Adyen’s infrastructure, illuminating just a fragment of its broad, blue-chip clientele.
Moreover, despite experiencing a hiccup with a stock price decline and a deceleration in the first half of the year unearths a compelling story of resilience. A staggering 14-fold growth in gross profits and operating income over a seven-year trajectory paints a picture of robust growth. Additionally, during the first half of the year, it delivered a GAAP EPS of €9.07 and a striking 21.5% year-over-year bump in net revenues to €739.1 million. Moreover, processed volumes are catapulting by 23% year-over-year to a whopping €426.0 billion, and point-of-sale volumes have leaped by an impressive 49% year-over-year to €67.0 billion. Adyen’s vertical integration has enabled it to become a key player steering the global digital payment trend, particularly amidst the waning use of cash in Europe.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines