The rise of fintech has transformed the way companies do business. Crowdfunding, mobile payments and trans-border cash transfer are some of the ways in which fintech has improved customer experience while at the same time reducing costs of doing business. The future of business lies in fintech and you can never go wrong by investing in fintech companies or buying fintech shares. If you have been thinking of doing so, here are 10 fintech companies to consider.
VeriFone makes credit card and debit card terminals. There have been fears that credit cards and debit cards will become obsolete as people move to mobile payments. However, Gil Luria, the head of technology and research at Wedbush Securities, notes that this may never happen. He further says that even if it were to happen someday, VeriFone’s terminals could be upgraded to accept mobile payments. VeriFone’s stocks are very affordable and have high prospects of shooting up.
Visa is well placed to play a significant role in the financial sector. Notably, even digital wallets are in most instances linked to the traditional credit card accounts. Additionally, Visa launched its own mobile payment platform, Visa checkout, in 2014 and it has done exceptionally well.
Vantiv operates in the payments processing space serving eight of the top 25 merchants in the U.S. It also serves retailers and over 400,000 small and medium sized companies. Vantiv acquired Mercury payments systems in 2014 and has since been able to win the loyalty of its customers while maintaining a high profit margin.
Square also operates in the payments space. It offers most of the services that you can ever need in a business setup ranging from tracking sales, accepting credit cards to financing of small businesses. Square’s stocks have very high prospects of earning handsome profits.
PayPal focuses purely on online payments unlike many other companies that generate revenues from several areas. The company has very high growth prospects and has worked to move from desktop to mobile payments as well as the simplification of payments processes for its customers.
Xero provides online accounting services to small companies in New Zealand. Its software connects customers with numbers that they want regardless of device used or physical location. Xero is highly innovative and you can bet on its shares to pick in the near future.
Betterment is a wealth management fintech company. There is no doubt about the future of wealth management because investors are keen on having more control and transparency around their wealth in the face of the ever unpredictable markets. Robo-advisors are being preferred over human advisers and with betterment at the forefront in robo-advising, the company’s future is assured.
On Deck Capital operates in the lending space. It makes use of technology to simplify and make borrowing fast and efficient. On Deck connects small businesses in U.S, Canada and Australia to reliable capital. The company is very promising and in 2016, it appeared in fintech 100 list by KPMG and H2 Ventures.
9) Lending Club
Lending Club provides a transparent, efficient and customer friendly ways of processing transactions between lenders and borrowers. Lending Club connects borrowers and lenders directly bypassing middlemen. The company applies technology in determining the creditworthiness of a prospective borrower. Legacy banks are finding it increasingly impossible to compete with fintech firms like Lending Club.
Based in Copenhagen, Nets provides cards, payments and information services. It was valued at $4.5 in its recent IPO making it the second largest public offering in Europe since the start of this year.
Get proper advice from a professional broker on how to buy fintech shares or invest in these companies, invest wisely!