The Top FinTech Companies to Invest in for 2025 The Motley Fool

But given the earnings trajectory of Block, that valuation looks very reasonable to start a position. The beauty of being a scaled platform is that PayPal benefits from a powerful network effect. As more merchants participate in the ecosystem, having a PayPal account becomes more valuable for consumers. The opposite is also true, with merchants finding more utility as the number of individual accounts grows.

Over the years, they have acquired more than 20 relevant companies that offer financial services. One thing that makes PayPal stand out from other fintech companies is its portfolio of acquisitions. Instead of providing your credit card information every time you buy something online, you can connect to your PayPal account.

Visa (V)

Here are two of the smartest fintech stocks that investors can buy with $1,000 right now. Specifically, V stock has many of the same quality and growth attributes that make MA stock a top-shelf choice. Also, one factor that the stock appears more attractive than its peer may be that shares trade for 25.6 times earnings. Melissa Pistilli has been reporting on the markets and educating investors since 2006. She has covered a wide variety of industries in the investment space including mining, cannabis, tech and pharmaceuticals.

A great arena for long-term growth investors

• However, there’s still even more room for Paypal stock to grow as the platform brings in more customers.
• She covers finance as well as real estate, technology, pop culture, and more.
• The fintech sector is experiencing rapid growth driven by several key trends.
• And at the same time, the sell-side community is focusing on the future, when it comes to deciding what are the top-rated fintech stocks.
• SoFi stock is trading below $15 and looks set to fall further today as markets react to the tensions in the Middle East.

The company’s Q financials report was also a significant catalyst for the stock. Root achieved net income profitability for the first time in its history on both a quarter-to-date and year-to-date basis. Shares in Root grew by nearly 69 percent from US$40.49 on October 30 to US$68.39 on October 31. But in fiscal 2023, its revenue only rose 18% as it lapped those gains, inflation curbed consumer spending, and its top customer, Peloton, struggled to sell more connected bikes and treadmills.

UK-based Clearspeed raised $60 million to advance its voice-based risk technology. French cybersecurity firm Gatewatcher raised €25 million while Greek banking technology provider Natech secured €28 million in funding. Fintech stocks In the US, AI security startup Bonfy.ai raised $9.5 million, highlighting the global demand for advanced compliance and risk tools. This reinforced investor confidence in the continent’s digital financial services. Fintech, short for financial technology, describes technologies that are being leveraged to make financial processes easier, more efficient, and more profitable.

• Most encouraging is that Mercado Pago is growing fastest when it comes to processing payments outside of MercadoLibre’s e-commerce platform.
• Bolt’s market cap could be far lower than the past official valuation.
• This stock skyrocketed in price throughout 2021, reaching prices nearing $2,000 per share.
• As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes.

Fiscal Quarter

Currently operating in 34 states, it is the largest insurtech company in the United States. In 2023, Robinhood’s revenue surged 37% to $1.87 billion and surpassed its pandemic-era high in 2021. That acceleration was driven by its growth in funded customers and assets under custody (AUC), which rose sequentially every quarter to 23.4 million and $103 billion, respectively, by the end of the year.

Fintech

MercadoLibre, Rocket Companies, and UP Fintech are the three Fintech stocks to watch today, according to MarketBeat’s stock screener tool. By leveraging software, data analytics and cloud infrastructure, these firms seek to disrupt traditional banking and insurance models with more efficient, customer-friendly products. Investing in fintech stocks lets investors tap into the growth potential driven by the digital transformation of the financial sector. These companies had the highest dollar trading volume of any Fintech stocks within the last several days. Fintech stocks represent companies that leverage technology to enhance or automate financial services and processes, including payments, lending, and wealth management. Investors might consider buying fintech stocks due to the industry’s rapid growth potential, driven by increasing digitalization and consumer demand for convenient financial solutions.

Stock Market

With that in mind, an alternative that lets you profit from the fintech boom without having to pick individual stocks can be an exchange-traded fund (ETF). If this sounds good to you, consider the Global X Fintech ETF (FINX -0.25%). When many people think of Bank of America (BAC 0.02%), they think of old-school banking — literally the opposite of fintech innovation. PayPal has 432 million active accounts in more than 200 countries around the world. In a nutshell, this is a highly profitable industry leader, and there’s no reason to believe that will change anytime soon. With more than $11 billion in cash and investments on the balance sheet and about $5 billion in annualized free cash flow, PayPal has the financial flexibility to pursue opportunities as they arise.

Thanks to its innovative loan approach, Upstart stock has climbed over 1000% in the past year. In just September, Upstart announced a partnership with Los Angeles Water and Power Community Credit Union in hopes of providing streamlined services to the 10+ million people in the area. It does so through a proprietary cloud application that allows seamless integration into bank tech. Fintech companies are completely changing the way we manage our money. For reference, we include the date and timestamp of when the list was last updated at the top right of the page. Beyond the Best Fintech Stocks, explore the best stocks across other categories.

From then on, they just need to enter a pin and have everything ready for future purchases. This speeds up the process and makes customers less likely to abandon an order midway through. Its app connects consumers with lenders and companies that install solar panels and other home improvements. GoodLeap started out financing solar panels but has since expanded its system to cover other improvements like battery storage and energy-efficient windows. However, the company has delayed its IPO and laid off about 12% of its workforce, roughly 160 employees.

Plaid had a market valuation of $13.4 billion when it last raised money in 2021. At the time, it was considering a merger with Visa but has since continued to operate as its own company using investor cash to fund operations. Users can scan a QR card with merchants to make payments without using cash or a credit card. Investing in fintech stocks isn’t for investors with a low tolerance for volatility and risk. Like any exciting growth industry, fintech is likely to be a bit of a roller-coaster ride as the industry matures.

David Rodeck specializes in making insurance, investing, and financial planning understandable for readers. He has written for publications like AARP and Forbes Advisor, as well as major corporations like Fidelity and Prudential. That added a layer of expertise to his work that other writers cannot match.

Related investing topics

The market for pre-paid debit cards is shrinking, but it has shifted its focus to other personal finance and business products to grow its client base. New financial technology has made it easier than ever to pay people back, borrow money, and invest money. The best stocks to buy in the Fintech category, are Shift4 (currently trading at $103.72 with an AI Score of 73) and Corpay (currently trading at $335.73 with an AI Score of 70). The information provided is for educational and informational purposes only and should not be construed as financial or investment advice. Conduct your own research or consult a qualified professional before making any investment decisions.