4 main Fintech stocks to watch in December 2021 |
Are These the Best Fintech Stocks to Buy Right Now?
Fintech stocks have been one of the fastest growing sectors of the stock market this year. This should come as no surprise as the industry continues to benefit from the shift to digital payments, which accelerated during the pandemic. Besides digital payments, many see cryptocurrencies as part of fintech as they are slowly being accepted around the world as a legitimate currency. Amid the uncertainties surrounding the Omicron variant, we are seeing a correction in the stock market and fintech stocks are not spared. Nonetheless, the fintech trend is one that would likely remain relevant for the foreseeable future. Not to mention that the industry is also not lacking in exciting developments that would pique the interest of investors.
For example, we have seen Square (NYSE: SQ) announcing yesterday that it would change its name to “Block”. The rebranding aims to underline the company’s expansion beyond its payments business and into new technologies like blockchain.
It happened just weeks after social media giant Facebook changed its name to Meta-platforms (NASDAQ: FB). Now, with the age-old shift to digital and contactless payments, would it surprise anyone if fintech companies profit in the long run? With all that is said and done, it wouldn’t hurt to have a list of the top four fintech stocks on the stock market today.
Best FinTech stocks to watch in December 2021
First, we have the cloud-based artificial intelligence (AI) loan platform, Reached. For those who don’t know, the company’s platform aggregates consumer loan demand and connects it to its network of banking partners. What’s interesting is that the company has created a configurable, multi-tenant cloud application that seamlessly integrates with a bank’s existing technology systems. For this, Upstart is unique in its own way, which currently sets it apart among the top FinTech companies.
Last month, it was announced that BCU would partner with Upstart to bring AI-powered personal loans to more people. As one of the top 100 credit unions in the country serving over 300,000 members in the United States and Puerto Rico, BCU would be a huge addition to Upstart’s client list. Thus, Upstart will provide a fully digital personal loan experience to improve the financial well-being of a greater number of eligible BCU members.
On top of that, Upstart just finished a strong financial quarter last month. In its third quarter, the company reported revenue of $ 228 million, a whopping 250% year-over-year increase. In addition, its GAAP net income increased 200% to $ 29.1 million. That said, UPST stock continues to decline over the past month. So, would you buy UPST stocks at a discount?
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Looking at the fintech space, Pay Pal would be a benchmark for many investors. Naturally, the company currently caters to over 400 million consumers in over 200 global markets. Given its size and the scope of its operations, investors might be watching PYPL stocks at this time. After all, there were plenty of positives in its recent financial report despite a weak fourth quarter forecast.
For starters, the company beat Wall Street estimates for its third quarter profit with strong growth in total payments volume. PayPal’s earnings per share were $ 1.11 compared to $ 1.07 expected by Refinitiv. Meanwhile, its total payment volume increased 26% to $ 310 billion. Not to mention, PayPal also announced that it has partnered with Amazon (NASDAQ: AMZN) to allow the company’s Venmo wallets in the US to be accepted on Amazon’s websites and mobile app starting next year.
It should be noted that the company announced yesterday that Wix Merchants (NASDAQ: WIX) can now offer PayPal’s Pay Later features to their consumers. With businesses expressing their optimism this holiday season, it would provide Wix e-commerce merchants with yet another avenue to help maximize this all-important time of year. Given these considerations, could PYPL stock be one of the best fintech stocks to watch right now?
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Next, we have a global provider of payment technology and financial services solutions, Fiserv. Essentially, it operates across three segments, Merchant Acceptance, Financial Technology and Payment, and Networks. Similar to many fintech companies this year, FISV stock traded sideways. So it wouldn’t be surprising if investors considering the FinTech sector keep their eyes on FISV stocks now.
In November, Fiserv announced the completion of its acquisition of BentoBox. BentoBox’s marketing and commerce platform delivers a seamless customer experience dedicated to accelerating restaurant growth and prosperity. Naturally, this would further expand the company’s Clover dining solutions, which enable nearly 200,000 restaurants to deliver unique dining experiences.
In addition to this, Australia’s Bank of Queensland will also continue its technological modernization with a transition to cloud-based debit card management with Fiserv. By leveraging the FirstVision platform, the bank can offer on-demand features that include the ability for customers to add cards to their digital wallets and pay using portable devices. With these exciting developments, would you watch FISV action?
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Visa is an American multinational financial services company headquartered in California. Essentially, the company facilitates electronic fund transfers around the world via Visa branded credit cards, debit cards and prepaid cards. Its transaction processing network, VisaNet, facilitates the authorization, clearing and settlement of payment transactions.
The company recently announced the launch of Visa Eco Benefits. This is a new set of sustainability-focused benefits for account issuers to encourage their cardholders to adopt sustainable consumer behaviors. It will first be available in Europe and then rolled out globally next year. With this new offering, Visa continues to be at the forefront of promoting sustainable commerce and climate action in the payments industry.
In addition, Visa’s Cybersource will also join the International Air Transport Association (IATA) financial gateway. The company aims to help airlines streamline commerce and payments efficiency, manage fraud, maximize revenue and innovate faster. As a result, its global capabilities are now available to more than 290 member airlines that are part of IATA. Given all of this, would you consider adding V stocks to your portfolio?