Top 5 Fintech Stocks In USA to Look For In 2023-24
The fintech sector has been growing rapidly in recent years, as more consumers and businesses adopt digital and cashless solutions for their financial needs. According to KPMG, global fintech investment reached $42 billion in 2020 and sparked 20 initial public offerings (IPOs) in that year. However, not all fintech stocks are created equal. Some are more established and profitable, while others are more speculative and volatile. Some depend on the popularity and regulation of cryptocurrencies, while others have more diversified revenue streams. Some have strong competitive advantages and loyal customer bases, while others face intense competition and high customer acquisition costs.
Visa Inc. (V)
Visa is one of the largest and most dominant payment networks in the world, facilitating trillions of dollars of transactions every year. Visa earns fees from merchants, banks, and consumers who use its cards and platforms to make payments.
Visa has been benefiting from the secular trend of cashless payments, especially in emerging markets where cash still dominates. Visa also has a strong presence in cross-border payments, which have been recovering from the impact of the pandemic. Visa has a P/E ratio of 45.6 as of August 31, 2023, which is lower than its five-year average of 51.4. Visa also pays a quarterly dividend of $0.32 per share, with a dividend yield of 0.56%.
Intuit Inc. (INTU)
Intuit is a leading provider of financial software for individuals and small businesses. Its flagship products include TurboTax, QuickBooks, Mint, and Credit Karma. Intuit helps its customers manage their taxes, accounting, budgeting, credit scores, and financial goals. Intuit has a loyal customer base and a high retention rate, as its software integrates well with each other and with third-party platforms. Intuit also leverages artificial intelligence (AI) and cloud computing to enhance its products and services.
Fiserv Inc. (FISV)
Fiserv is a leading provider of payment and financial technology solutions for banks, credit unions, merchants, and other financial institutions. Fiserv offers a wide range of products and services such as core banking systems, card processing, digital banking platforms, bill payment solutions, fraud prevention tools, and merchant acquiring services.
Fiserv has been growing through acquisitions and partnerships, such as its merger with First Data in 2019 and its joint venture with Bank of America (BAC) in Zelle in 2017. Fiserv also has a large and diversified customer base, serving over 12,000 financial institutions and millions of merchants worldwide.
LendingTree Inc. (TREE)
LendingTree is an online marketplace that connects consumers with lenders, insurers, and other financial service providers. LendingTree offers a variety of products such as mortgages, personal loans, credit cards, auto loans, insurance, and banking. LendingTree benefits from its network effect, as it attracts more consumers and providers to its platform. LendingTree also leverages data and analytics to match consumers with the best offers and to optimize its marketing and customer acquisition costs.
Coinbase Global Inc. (COIN)
Coinbase is one of the largest and most popular cryptocurrency exchanges in the world, where investors can buy, sell, store, and trade various digital assets such as Bitcoin, Ethereum, and Dogecoin. Coinbase earns fees from transactions, subscriptions, and services on its platform.
Coinbase has been benefiting from the surging interest and adoption of cryptocurrencies, especially among institutional investors and corporations. Coinbase also has a strong brand recognition and reputation in the crypto space, as well as a robust security and compliance infrastructure.
Block Inc. (SQ)
Block, formerly known as Square, is a fintech company that provides payment and financial solutions for individuals and small businesses. Block’s products include the Square Reader, the Square Stand, the Square Register, the Square Card, the Square Capital, the Square Payroll, and the Cash App.
Block has been expanding its ecosystem beyond payment processing, into areas such as banking, lending, investing, and crypto. Block’s Cash App is one of its key growth drivers,
with over 49 million active monthly users as of September 2022. The Cash App allows users to send and receive money, buy and sell stocks and Bitcoin ( BTC 6.53% ), and access banking features such as direct deposits and debit cards.
Twilio Inc. (TWLO)
Twilio is a cloud-based platform that enables developers to build, manage, and scale communication applications using APIs (application programming interfaces). Twilio’s products include voice, video, messaging, email, chatbot, and authentication services. Twilio has been growing rapidly by adding new customers and expanding its product offerings. Twilio serves over 240,000 customers across various industries such as e-commerce, healthcare, education, and social media. Twilio also leverages AI and machine learning to enhance its products and services.
Conclusion
These are fintech stocks that offer steady growth and profitability, with lower price-to-earnings (P/E) multiples and more predictable earnings. They may have more media hype or explosive potential than some of the older fintechs, but they also face more challenges and uncertainties.
