While there’s plenty of competition in the online banking market, SoFi continues to increase its customer count and sales. While some fintech companies failed to adapt, some figured out how to grow customers in an increasingly competitive landscape. Three fintech stocks that have come out stronger on the other side are SoFi Technologies (SOFI -0.83%), American Express (AXP 0.01%), and PayPal (PYPL -0.35%). PolicyBazaar, operated by PB Fintech Ltd., is a household name in India’s insurance and financial services sector.
While it’s smart to be patient with your fintech stocks, you also must be willing to trade—to cut losses or take profits. Do your best to define your exit parameters early on; this encourages you to make logical decisions, rather than emotional ones. Things change quickly in the fintech space, so it’s important to manage your portfolio carefully. Below are four strategies that can help you mitigate the risk of investing in a fast-moving space.
These agents ingest and analyze both structured and unstructured data sources. USA-based startup NAYA offers an AI-driven platform for financial operations and infrastructure. The platform incorporates advanced algorithms Fintech stocks to manage treasury, automate reconciliation processes, and enforce compliance checks across several financial systems.
Crypto is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential. Financial technology (fintech) is a fast-growing segment of the broader financial sector, and revenue generated by companies in this space could be massive. Estimates from BCG put the global fintech market at $1.5 trillion in sales by 2030. In addition to investing in single fintech shares, you also have the option of investing in fintech companies via a Fintech ETF.
Quick Look at the Best Fintech Stocks:
She covers finance as well as real estate, technology, pop culture, and more. Using blockchain technology, the company runs a digital shopping mall platform called Chain Cloud Mall (“CCM”). The company has been tapped as a high-growth stock for the next few years. Square seems committed to expanding its suite of products and acquiring smaller companies in the fintech space.
- Since 1988 it has more than doubled the S&P 500 with an average gain of +23.64% per year.
- Capital One is strengthening its mobile payments edge through a digital-first banking platform and expansive credit card network.
- However, there’s still even more room for Paypal stock to grow as the platform brings in more customers.
- With an incredible suite of products and strong financial performance, it’s no surprise that investors love Square.
How can investors stay updated on the latest trends and developments in the fintech sector?
What began as a convenient alternative has grown into a full-fledged financial ecosystem, fueled by rapid fintech innovation and the widespread reach of smartphones. According to KPMG, global fintech investment reached $44.7 billion in the first half of 2025, even against the backdrop of elevated interest rates and geopolitical headwinds. The bulk of funding flowed into the Americas, though the EMEA region also attracted sizable deals. Emerging technologies such as blockchain and artificial intelligence are strengthening transaction transparency, speeding up processing, and mitigating fraud. Meanwhile, “super apps” like WeChat Pay, Alipay, and PhonePe are reshaping consumer habits by integrating communication, shopping, banking, and payments into one seamless platform. While interest in cryptocurrency has lulled in 2024, open banking initiatives and the integration of application programming interfaces (APIs) in financial services have been driving innovation.
Features to Look for in Fintech Stocks
PayPal deserves a spot on this because it is one of the leading online payment companies and has one of the most popular person-to-person payment systems, through its Venmo app. The company’s decades of experience in the fintech space mean it’s amassed 432 million global users. The financial technology (fintech) space has evolved rapidly over the past several years as rising interest rates caused many fintech companies to expand their products and services. Its “Tap to Pay” feature uses NFC technology to turn any smartphone into a contactless payment terminal, eliminating the need for extra hardware. Coupled with customizable checkout solutions, PayPal delivers frictionless mobile e-commerce at scale. Its expansive BNPL (Buy Now, Pay Later) portfolio is another growth engine, widely adopted for everyday purchases from groceries to electronics.
- And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.
- Research the leadership team and their collective experience in designing compelling solutions and executing growth plans.
- When you work with the right broker for your needs, it’s much easier to make wise decisions and manage your portfolio.
- Avoid investing too much capital into individual companies to even out your holdings and limit the risk of loss.
- With a massive customer base in Latin America, MercadoLibre has proven to be very adaptable to the needs of its users.
Adyen’s growth has been impressive, and the business processes almost $1.5 trillion in annualized payment volume. Plus, Adyen is highly profitable, with a 50% earnings before interest, taxes, depreciation, and amortization (EBITDA) margin last year that could get even better as the business scales. When many people think of Bank of America (BAC 0.18%), they think of old-school banking — literally the opposite of fintech innovation.
Investing in Top Fintech Companies
But, unlike the other major payment processing tech companies, Adyen focuses almost exclusively on large businesses. Microsoft (MSFT -1.13%), Uber (UBER -0.9%), and McDonald’s (MCD 0.45%) all rely on Adyen for their payment processing needs. You may recall that eBay dropped PayPal as its preferred payment processor several years ago; that was in favor of Adyen. Leo Sun is a contributing Motley Fool stock market analyst who has worked with the company since 2013, covering technology, consumer goods, industrial, and financial sectors.
Fintech, short for financial technology, is an umbrella term describing technology solutions that streamline money management, banking and investing. Mogo is a Canada-based fintech company offering solutions to help customers control their financial health. The company offers personal loans, identity protection, crypto trading, credit scores, prepaid Visa cards and more. The company is led by CEO David Feller, who is a serial entrepreneur and brought Mogo public in 2015.
It also enables merchants to develop their own digital wallets and branded payment cards. The financial sector is dominated by big banks which mainly focus on generating stable profits instead of breakneck growth. However, a new generation of fintech companies — which are modernizing traditional payment and banking services with their tech platforms — are growing a lot faster than those aging industry leaders.
It’s not surprising that many investors prefer the convenience of tapping a few buttons in a smartphone app vs. calling their broker and discussing a potential trade. As the world moves away from cash and towards digital payments, there are plenty of opportunities for these stocks to grow even more. The company also offers mobile banking products, including a high yield savings account option. We’ve rounded up some of the top fintech stocks on the market right now to add to your investment portfolio.
Fintech companies facilitating seamless data sharing allow for better connection between the customer and the advertiser, improving the value of advertising relationships. This can open fintech stocks as potential advertisement investments, especially those focusing on natural API integration. Fiserve has a suite of financial, payment and banking solutions for businesses, financial institutions, governments and consumers. The Wisconsin-based company has a sizable market share in business software and solutions. Afterpay is a pioneering financial technology company that offers Buy Now, Pay Later services, enabling consumers to make purchases and repay them in interest-free installments. With a global user base of millions, Afterpay increases shopping flexibility and drives merchant sales through its innovative, customer-centric payment solutions.
Fintech stocks are gaining popularity in India due to the country’s rapid digital transformation, increasing smartphone penetration, and a growing demand for convenient and accessible financial services. DigiSpice Technologies focuses on providing fintech solutions for enterprises and governments. With an emphasis on enabling financial inclusion through digital platforms, the company has carved a unique niche in the fintech industry.
Upstart Holdings Inc. (NASDAQ: UPST)
These apps allow for a better trading experience through zero commissions, extended hours, and more. Futu operates two investing apps – Futubull in Asia and Moomoo in the United States. Futu Holdings is an online brokerage based in Hong Kong, with operations in China and the United States. MercadoLibre also has a tool called MercadoShops, which small businesses can use to make sales directly from their websites. However, they have massive potential for growth, especially with their BaaS product. Such opportunities could involve blockchain technology or decentralized finance.