back Back

Top 3 listed FinTech stocks for long term investment

By Joy Dumasia

July 06, 2021

  • Europe
  • Top
Share

Financial technology (FinTech) describes new tech that seeks to improve and automate the delivery and use of financial services. ​​​At its core, FinTech is utilized to help companies, business owners, and consumers better manage their financial operations, processes, and lives by using specialized software and algorithms that are used on computers and, increasingly, smartphones.

FinTech, Investment
 

Many types of companies are under the FinTech umbrella. Here are some of the products and services they offer:

  • Payment processing
  • Online and mobile banking
  • Online and peer-to-peer (P2P) lending
  • Person-to-person payments
  • Financial software
  • Financial services

There is a ton of long-term potential in the FinTech industry, so it can be tough to find the best investment opportunities. With that in mind, here are three FinTech stocks that could make great additions to your portfolio.

This FinTech startup is a significant player in the Bitcoin world and has been expanding into other currencies like Ether. Its goal is to be a one-stop shop for all of your cryptocurrency needs by providing a secure way to buy and sell online. Recently it partnered with Circle, a leading FinTech company that allows users to send and receive payments across social networks.

This new partnership should improve their current offerings for users, including easy trading between fiat currencies (USD/EUR/GBP) and Bitcoin (BTC). If you are looking for a company that’s been around for several years, Coinbase has been in operation since 2012. Coinbase is big on transparency for investors, so it’s easy to see its profitability and how soon it may be able to pay dividends.

IBS Intelligence reported that Coinbase has responded to the recent proposed rulemaking from the U.S. Treasury and FinCEN that would impose new reporting and recordkeeping requirements for cryptocurrency transactions.

This online payment system offers all the functionality of a credit card without swiping your card or giving out your bank account number. Whether you are paying your friends back for tickets, they bought for a gift, or you are ordering a pizza, paying with PayPal is a great way to enjoy all the convenience of a credit card without actually using one.

PayPal has over 205 million active users worldwide and offers buyer protection against any items that can’t be delivered — so if you buy something on eBay that ends up being completely fake, PayPal will refund your money. Its financials are always readily available on its website and look very strong overall.

IBS Intelligence noted that FinTech PayPal had announced the launch of a new service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account, and signalled its plans to increase cryptocurrency’s utility by making it available as a funding source for purchases at its 26 mn merchants worldwide.

Over the past several years, FinTech Square’s product has evolved from a way for merchants to accept credit cards using their mobile phones into a large-scale small-business and individual financial ecosystem. The company now processes card payments at an annualized rate of over $100 billion. It has a thriving small-business lending platform (Square Capital), and it has started to gain serious traction with more prominent merchants in addition to its core small-business clientele.

Two significant parts of Square’s business are fascinating. First is its Cash App, with an active user base that has doubled year over year and virtually unlimited potential to build out its consumer financial service offerings. Second is Square Online Store, the new but rapidly growing platform that helps Square’s merchants build an omnichannel presence. It also facilitates curbside pickup, which could be a significant growth catalyst in the post-COVID world.

IBS Intelligence also speaks about Square, building simple tools to help people participate and thrive in the economy. It has announced a new integration with Google Merchant Center, making it easier for Square sellers to reach new customers through direct product listings on Google.

In conclusion, investing in FinTech stocks is not for investors with a low tolerance for volatility and risk. FinTech is likely to be a bit of a roller-coaster ride as the industry matures like any new and exciting industry. However, for long-term investors with relatively high-risk tolerance, FinTech stocks like those mentioned here can be an excellent means of capitalizing on one of the most exciting growth trends in the business world.

ALSO, READ: Global FinTech Use Cases Report 2021

Previous Article

July 06, 2021

Pleo raises $150 mn in Series C round co-led by Bain Ventures & Thrive Capital

Read More
Next Article

July 06, 2021

Previse partners with Pagero to embed InstantPay early payment tech

Read More








IBSi Daily News Analysis

March 22, 2024

Europe

Industry experts stress modernization, sustainability, and AI as cornerstones for future of corporate banking, Finastra study shows

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

5 Major FinTech Acquisitions announced in March 2024

Read More

Today

Tempo France suspends classical remittances, to focus on DeFi

Read More

Today

Qonto unveils its first in-house financing offer, ‘Pay later’

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q4 2023
Know More
Wealth Management & Private Banking Systems Report Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023