Fintech Frontiers: 7 Innovative Stocks Reshaping Finance in 2024


  • PayPal (PYPL): With over 70% of U.S. adults using PayPal, its strong market penetration and a robust balance sheet position it for a 25.4% upside in 2024.
  • Fiserv (FISV): Offering crucial backend technology for digital transactions, Fiserv is set for impressive growth with a projected 13%-17% EPS growth and 11%-13% organic revenue growth in 2024.
  • Affirm (AFRM): As a leader in BNPL, Affirm’s stock surged 170% in six months; its strategic eCommerce partnerships and a strong recent quarter indicate significant long-term growth potential.
  • Continue reading the list of the best fintech stocks to buy at this time
fintech stocks - Fintech Frontiers: 7 Innovative Stocks Reshaping Finance in 2024

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In the ever-shifting terrain of the financial sector, fintech stocks have emerged as both a turbulent and transformative force. These stocks, imperative in the digital overhauling of financial systems, continue to captivate investors. Despite experiencing some volatility, the sector frontrunners are redefining financial services, offering innovative solutions to individuals and businesses alike. This period of fluctuation in fintech growth stocks presents a prime opportunity for savvy investors to load up on undervalued assets at appealing prices. Furthermore, with a 2% slice of the $12.5 trillion global financial services revenue, the fintech sector is on track to expand its influence to 7% by 2030, affirming the enduring allure of fintech stocks.

PayPal (PYPL)

PayPal logo and front of headquarters

PayPal (NASDAQ:PYPL) stands out in the fintech space with its commitment to enhancing user experience and security, and has already established itself as a mainstay in the field. Its powerful reputation as a safe payment handler is second to none. The company boasts significant market penetration in the U.S., with over 70% of the adult population having used PayPal in the past five years.

Furthermore, the popularity of the PayPal Rewards program, benefiting more than 25 million consumers, further amplifies user engagement and spending on the platform. With a new CEO, a robust balance sheet and a proven track record, PayPal is positioned incredibly well for 2024 offering 25.4% upside from current levels. These factors, combined with potential increases in consumer spending, suggest that PayPal is on the brink of a significant breakout, making it a promising investment opportunity.

Fiserv (FISV)

Fiserv logo on a corporate building

Fiserv (NASDAQ:FISV), though not widely known outside the fintech sphere, plays a critical role in financial technology, offering diverse payment processing solutions through platforms including Carat and Clover. As a leading provider in payments, processing, core banking, risk management and compliance, the company’s impact in the financial services sector remains significant.

Fiserv’s backend technology is essential for financial institutions to conduct digital transactions, positioning the firm to benefit from the growing trend of digital payments. It’s projected to deliver an eye-catching performance in 2024 with 13% to 17% adjusted EPS growth and 11% to 13% organic revenue growth. Looking further ahead, Fiserv forecasts consistent annual growth for 2025 and 2026, including 9% to 12% increases in organic sales and a remarkable 14% to 18% rise in adjusted EPS.

Affirm (AFRM)

Smartphone with website of US financial technology company Affirm Holdings Inc (AFRM) on screen with logo Focus on top-left of phone display
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Affirm (NASDAQ:AFRM) is a top key player in the Buy Now, Pay Later (BNPL) industry and offers an intriguing investment opportunity in fintech. Moreover, the stock is up an enviable 170% over the past six months, signaling robust growth potential, particularly with its strategic partnerships with e-commerce giants, including Shopify (NYSE:SHOP), Amazon (NASDAQ:AMZN) and others.

The company’s success is fueled by evolving consumer spending habits, especially during peak seasons such as Black Friday and holidays, which is expected to contribute to a robust fourth quarter. Furthermore, it delivered a stunner of a quarter recently with $497 million net revenue, a 37.4% bump on a year-over-year basis, against a 57-cent loss per share, beating estimates by 13 cents. Also, Affirm’s commitment to marketing and innovation indicates a long-term strategy for expansion in the payment sector. The company’s focus on merchant service fees for profits and risk mitigation through strategic partnerships, along with product diversification through its branded debit card, positions it for future profitability.

Bank of America (BAC)

Bank of America (BAC) logo on top of a retail office building.
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Bank of America (NYSE:BAC) is an iconic traditional bank successfully bridging the gap with fintech. The bank has emerged as a key player in fintech, evidenced by innovative initiatives such as its CashPro platform. This platform, especially with its recent B2C payments solution launch in Canada, underscores its commitment to providing seamless digital solutions across its markets.

On top of that, this year also saw BAC debut its fintech accelerator, aimed at empowering entrepreneurs from underrepresented communities. This move effectively highlights the bank’s dedication to fostering the expansion of its fintech division. Hence, with its strategic fintech developments and the anticipated decrease in interest rates, BAC’s stock is poised for a continued upward trajectory. Moreover, it boasts an A-graded profitability profile, with a surging net income margin of more than 31.5% and cash from operations at a whopping $43.3 billion.

MercadoLibre (MELI)

MercadoLibre (MELI) homepage on a smartphone
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MercadoLibre (NASDAQ:MELI) has gotten much attention over the last several years while emerging as Latin America’s eCommerce and fintech champion. The stock has plenty of room to run after a powerful 2023 that has witnessed its shares rise rapidly.

Mercado Libre’s largest markets are Argentina, Brazi, and Mexico. The company offers eCommerce and payments across 18 countries overall. Although MercadoLibre is best known as an eCommerce company, its payments platform, Mercado Pago, has evolved into a major money spinner. In the third quarter alone, the company’s payments volume increased by 121.3%, reaching $47.3 billion. Furthermore, the company also offers payment systems similar to products such as Venmo, and its overall growth is simply impressive. Revenues grew by more than 69% to a whopping $3.8 billion in sales during the most recent period. As interest rates fall into 2024, it’s reasonable to expect that MELI shares will only be stronger as a growth stock.

Visa (V)

An outstretched hand holds three different Visa credit cards.
Source: Teerawit Chankowet /

Visa (NYSE:V) is the largest credit card issuer by market cap, It thrives on profits from every transaction made with its cards, like someone selling shovels in a gold rush. The company consistently reports high-profit margins, comfortably surpassing the 50% mark. Visa’s strong financial performance is evident in its double-digit year-over-year growth rates in both sales and earnings in the fourth quarter of fiscal 2023.

This financial success is further highlighted by a consistently rising net income growth of 19% year-over-year in the fiscal fourth quarter, outpacing the full-year growth of 15%. Despite a slight 0.9% dip in the current year, V stock has seen a substantial 101% growth over the past five years. Additionally, Visa’s commitment to shareholder value is reflected in its 15 consecutive years of growing dividend payouts, yielding 0.8%. Given these factors, while not the cheapest, Visa’s stock stands as a worthy addition to any investment portfolio, promising stable growth and consistent return.

Nu Holdings (NU)

gold building with "bank" on the front to represent banking stocks
Source: Shutterstock

Nu Holdings (NYSE:NU) is a Brazilian parent company of Nubank, stands out in the fintech landscape. In a mere decade, this digital financial services firm has expanded its operations beyond Brazil to Mexico, Colombia and other markets, transforming into a formidable institution with impressive assets and billions in annual revenues. This year, Nu has notably achieved consistent profitability, marking a significant milestone in its journey.

Despite its relative anonymity in the U.S. market, NU stock is far from struggling. The company’s growth trajectory remains incredible, with its customer base expanding from 70 million to 89.1 million in just a year and customer balances soaring from $9.7 billion to $15.4 billion. Financially, Nu Holdings reported a whopping 54% increase in revenue in the third quarter, reaching $2.1 billion, while its net income jumped from $7.8 million to $303 million year-over-year. These robust figures underscore the company’s potential as an emerging player in the fintech sector.

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 Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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