3 Fintech Stocks That Will Be Big Winners in 2023
In 2023, fintech is expected to grow rapidly as technology revolutionizes the financial industry. That should mean good things for fintech stocks. Investors should expect the continued integration of fintech into traditional financial institutions, such as banks. This will allow for a more seamless and efficient experience for customers, as they can access financial services through various channels, including mobile apps, online portals, and in-person interactions.
Further integration of blockchain technology in fintech could lead to more secure and transparent financial transactions. Overall, fintech will continue to play an essential role in shaping the future of the financial industry, making it more accessible, efficient, and personalized for customers. In turn, fintech stocks, including those below, stand to grow substantially in the coming year.
Block (NYSE:SQ) stock represents the fintech company that specializes in providing blockchain-based solutions for financial institutions and businesses. The company offers a range of services, including digital asset management, smart contract development, and blockchain integration. Its products are built on various blockchain networks, like Ethereum (ETH-USD) and Hyperledger, to increase efficiency, security, and transparency in financial transactions.
Most investors will recognize Block for its Square point-of-sale systems and CashApp, which allows users to send and receive money instantly. CashApp has done particularly well with the transaction and subscription-based revenue growing rapidly in 2022.
CashApp has increased fees over the last few years, which has led to increased profits. Analysts expect those trends to continue, with the majority giving SQ stock a buy rating leading to an aggregate ‘overweight’ rating.
Block faces competition from other fintech giants, including PayPal (NASDAQ:PYPL) and its Venmo app, which is the largest peer-to-peer cash payment app by volume.
Global Payments (GPN)
Global Payments (NYSE:GPN) stock is another fintech expected to grow in 2023. It is a fintech company that provides payment processing services for businesses of all sizes. It offers a range of payment solutions, including credit and debit card processing, electronic check processing, and online payment processing. As its name suggests, the company operates in various countries and provides users with reliable and secure payments. The company also offers fraud prevention and data security services.
Global Payments is refocusing on the B2B side of its business after exiting the consumer side of its Netspend business to focus on corporate customers exclusively. That decision led to impairments reflected on its balance sheet and financial statements in Q3.
The merchant side of the business grew by 11% during the period. The company expects 2022 net revenue to grow by 10% to 11% in 2022. If that turns out to be correct, expect GPN stock to rise as it is effectively refocused on merchant business and corporate clients. That suggests that the divestiture of its underbaked customer business was a good decision.
Payoneer Global (PAYO)
Payoneer Global (NASDAQ:PAYO) stock is a leading global payment platform that enables businesses and professionals to send and receive cross-border payments easily. It provides online money transfer and e-commerce payment solutions and operates in over 200 countries. It offers various services such as bank transfers, credit/debit card payments, and e-check payments to its customers.
Payoneer is focused on small and medium businesses (SMBs) to allow equal participation in the global economy. In short, if you’re working online, Payoneer is there to help you work and get paid because of your talent, not your nationality.
Payoneer reported strong Q3 growth of 30% on a year-over-year basis, with revenues reaching $158.9 million. A strong point in favor of PAYO stock is that transaction costs as a percentage of revenue continue to fall throughout 2022, from 18.7% in Q1 to 17.6% by Q3.
Payoneer is particularly strong in emerging high-growth markets, including Latin America, where it reported 50% YoY Q3 revenue growth. Payoneer’s net losses through Q3 are significantly lower than in 2021 and amounted to $1.82 million.
On the date of publication, Alex Sirois did not have (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.