Check Out These Fintech Stocks As Adoption Continues To Rise
Fintech stocks continue to take center stage in the stock market as their popularity increases by the day. After all, we are witnessing a shift to a cashless society in today’s world. Fintech is also changing the way consumers access to credit. On Friday, we saw Amazon (NASDAQ: AMZN) partnering with Affirm Holdings (NASDAQ: AFRM) to gain access to its ‘buy now, pay later’ checkout option. This feature will be available to certain Amazon customers in the U.S. with plans for a broader rollout in the coming months.
Well, this is yet another sign of the booming lending space as younger consumers shift towards these alternative lines of credit. Investors were clearly hyped about the partnership as AFRM stock spiked as much as 48% after-hours Friday on the news. With all said and done, most would agree that financial technology is here to stay and probably play an important role in the future of finance. With that in mind, do you already have these top fintech stocks in the stock market today?
Best Fintech Stocks To Buy Heading Into September 2021
- Square Inc (NYSE: SQ)
- JPMorgan Chase & Co (NYSE: JPM)
- Intuit Inc (NASDAQ: INTU)
- Global Payments Inc (NYSE: GPN)
Digital payments company Square started with the idea that no one should be left out of the economy due to a cost too great or the technology too complex. So, it provides easy tools to empower its customers. Square’s product line includes Cash App, which allows users to send and receive money for free through a mobile application, and Square Point-of-Sale, an application that allows merchants to process payments via smartphone.
If you have been keeping tabs on the fintech space, you may have heard about the company’s agreement to acquire Afterpay Ltd (OTCMKTS: AFTPF) for an implied value of $29 billion. With Afterpay now on board, the company will have access to its pioneering global ‘buy now, pay later’ platform. This would accelerate Square’s strategic priorities for its Seller and Cash App ecosystems. At the same time, this will also support Square’s consumers with flexible payment options.
In early August, Square reported its second-quarter results. The company recorded total net revenue of $4.68 billion, up 143% year-over-year. Excluding bitcoin revenue, the total net revenue was $1.96 billion. That was a respectable increase of 87% from a year ago. Net income was $203.7 million, up from a loss of $11.5 million in the same quarter last year. Given all of this, would you be adding SQ stock to your portfolio?
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JPMorgan Chase & Co
Next up, we will be looking at the financial juggernaut, JP Morgan. Essentially, the company engages in investment banking, financial services, and asset management. As the biggest U.S. bank by assets, the company recognizes the rising popularity of financial technology and the need to adapt to the current trends.
In the past, there might have been a sense of reluctance for the company to deal with cryptocurrencies. However, this may well be over given its recent partnership with crypto giant New York Digital Investment Group (NYDIG). JP Morgan is following the footsteps of rivals Morgan Stanley (NYSE: MS) and Goldman Sachs Group (NYSE: GS) to offer bitcoin funds to its clients. So, the bank’s financial advisors will be allowed to place private clients into a new Bitcoin fund created by NYDIG. Hence, NYDIG will act as the fund’s issuer while JP Morgan will earn servicing and placement fees for referring clients to NYDIG.
On top of that, the company also launched a new real-time payment option earlier this month. The new service known as “request for pay” allows corporate clients to send payment requests to the bank’s retail clients who use its app or websites. With this, it would cut costs and time for those companies to receive payments. JP Morgan hopes to increase its edge in the financial industry to handle the increasing volumes of global digital payments. With all these in mind, would you consider buying JPM stock?
Global tech platform company Intuit helps its customers by delivering financial management and compliance products and services. INTU stock has been rising steadily since the start of the year. It has gained over 50% within the period and shows a healthy bullish momentum.
Earlier this month, Intuit and Credit Karma announced the integration of Credit Karma Money and QuickBooks Online Payroll. Each year, consumers pay more than $30 billion in banking fees. Now, employees paid through QuickBooks Payroll can choose to sign up to have their paycheck automatically deposited into a Credit Karma Money account. Thus, this new integration would hopefully help to keep more money in the pockets of small business employees.
Last week, Intuit announced its fourth-quarter earnings report capping off an outstanding fiscal 2021. The company announced a revenue of $2.6 billion, up by 41% year-over-year, including the addition of Credit Karma. Out of which, Small Business and Self-Employed Group revenue grew by 19% to $1.3 billion. Meanwhile, Credit Karma reported revenue of $405 million, a quarterly record for the business. All in all, the company appears to boast a healthy financial sheet with strong guidance ahead. So, would you consider adding INTU stock to your portfolio?
Global Payments Inc
Last but not least, Global Payments is a company that specializes in payment technology services. In detail, the company primarily provides payment solutions for credit cards, debit cards, electronic payments, and check-related services. Its target clients are from a wide range of industries that includes financial services, gaming, government, healthcare, and the list goes on.
Global Payments announced its second-quarter financial highlights earlier this month. The company posted GAAP revenues of $2.14 billion, an increase of 28.1% year-over-year. Meanwhile, its adjusted earnings per share increased 56% to $2.04. Evidently, the company continues to execute its strategic priorities of balancing reinvestment in the future growth of its business. Hence, allowing it to again raise its expectations for full-year 2021 adjusted net revenue to be in the range of $7.70 to $7.73 billion.
Not to mention, the company continues to expand its competitive edge in this growing industry through several strategic partnerships. For starters, it was able to partner CaixaBank to acquire Bankia’s payments business in Spain. This enhances its position in one of the most attractive markets in Europe. Also, the company was able to enter a new collaboration with Amazon Web Services for unique distribution and cutting-edge technologies at Netspend. Overall, these are exciting times for the fintech company. Now, would you consider GPN stock as a top fintech stock to buy?