The financial technology (fintech) sector, a vital area for top fintech stocks, is currently being propelled forward by rapid technological advancements. Experiencing significant growth, the sector is expected to witness its global transaction value soar by a remarkable 94% to $9.2 trillion by 2027. This upsurge, marking a decade of continuous growth, highlights the astounding expansion of the fintech sector.
The global fintech market is on a trajectory of impressive growth. Analysts at Mordor Intelligence project that by 2028 the market will balloon to $355.57 billion, flourishing at a compound annual growth rate (CAGR) of 11.72% from 2023 to 2028. This expansion represents a tangible shift in how banks and payment companies operate.
Furthermore, leading financial institutions are now capitalizing on the widespread adoption and innovative integrations of fintech. This moment offers a prime opportunity for investors to enhance their portfolios and increase profits by exploring these promising financial technologies.
Here are some of the top fintech stocks for investors to focus on right now.
Visa (V)
Visa (NYSE:V), a top performer in the fintech realm, has seen its stock soar in recent years. Since being added to the Zacks Focus List on May 30, 2017, at $94.67 per share, its value has impressively climbed 170.22% to $255.82. Visa’s potential seems unfazed by market conditions and is driven by its innovative approach to digitizing transactions which has streamlined cross-border remittances.
Recently, Visa has taken a leap in artificial intelligence (AI), launching a $100 million Generative AI Ventures Initiative. This initiative aims to invest in companies developing generative AI technologies poised to revolutionize commerce and payment systems. This advancement reflects Visa’s commitment to leading tech innovation.
Financially, Visa stands strong. Its GAAP net income jumped 18.81% year-over-year (YOY) to $4.7 billion, with revenue hitting a robust $8.61 billion, up 10.56% from the previous year. Stable growth in payment and transaction volumes, robust cross-border volume growth and a forward dividend yield of 0.81% underline the company’s financial health, making Visa an investor favorite for fintech stocks.
PayPal (PYPL)
PayPal (NASDAQ:PYPL) remains a significant force in the fintech industry. Despite a recent dip in share price, its financials show robust health. In the third quarter, it outperformed expectations with an adjusted earnings per share (EPS) of $1.30, up from $1.16 in the previous quarter. Revenue also increased to an astounding $7.42 billion, a YOY growth of 8.3%. This financial strength is complemented by a 13% increase in transactions per account over the past 12 months and a Total Payment Volume (TPV) of $387.7 billion for the quarter.
Commanding over 32% of the global online payment market, PayPal continues to evolve, strategically enhancing its executive and management teams to meet customer needs better and stay ahead of online shopping trends. This move, coupled with the introduction of an instant bank transfer feature to compete with Zelle, showcases PayPal’s commitment to innovation. These initiatives reflect PayPal’s resilience and strategic vision, further cementing its status as a top fintech stock.
SoFi Technologies (SOFI)
As a prominent online financial platform, SoFi Technologies (NASDAQ:SOFI) offers diverse services like personal loans, mortgages and student loans. With the U.S. having about 44 million student borrowers, an increase in personal loan demand is likely, from which SoFi stands to benefit. The company has seen remarkable growth, adding over 717,000 new users recently, indicating a shift in consumer preference towards its services over traditional banking options.
Financially, SoFi’s deposits surged to $15.7 billion in 2023 from $7.3 billion the previous year. It reported a revenue of a robust $537 million, up 27% YOY, and is poised to achieve profitability in the first quarter of 2024. This financial strength underscores SoFi’s solid market position.
Adding to its appeal, SoFi launched the SoFi Enhanced Yield Exchange Traded Fund (ETF), broadening income opportunities for investors. This strategic move, coupled with Ark Invest increasing its SOFI stake by acquiring an additional 180,000 shares, reflects growing market confidence in SoFi’s growth potential. Investors should take note and consider SOFI if they are looking for one of today’s best fintech stocks.
On the date of publication, Muslim Farooque did not hold (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.
