Fintech
The 3 Smartest Fintech Stocks to Buy With $5,000 Right Now
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Fintech Stocks continue to hold immense potential to deliver solid returns to investors. These companies are at the forefront of revolutionizing the way we transact and think about money. And that includes the advent of cryptocurrencies like Bitcoin (BTC-USD exchange rate).
As we continue to see the monetary system shake up, fintech stocks are leading the way. To capitalize on these fundamental changes, I researched three fintech stocks that strike the right balance between risk and reward. Often overlooked by the financial media, these hidden opportunities are earning strong buy ratings from analysts.
Furthermore, with a decline in interest rates is expected During 2024 and 2025, the economic environment is expected to be favorable for fintech companies. This can increase the liquidity and growth of the market.
Let’s look at the three smartest fintech stocks to buy with $5,000 right now. Each of them is poised to provide substantial returns, revenue and earnings increases for both short- and long-term investors. Don’t miss out on these great opportunities.
Visa (V)
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Visa (London share:V) is widely considered one of the smartest fintech stocks to invest in, thanks to its continuous innovation and strategic initiatives.
Recently, Visa relaunched its SavingsEdge Program, which provides greater value to small businesses in the United States and Canada. It includes features like instant coupons and cashback offers, allowing owners to save on essential purchases.
Another significant development for Visa is its reaching the issuance of the 10 billionth token. The move generated $40 billion in incremental revenue from e-commerce globally. Visa’s tokenization technology improves security in digital payments by replacing sensitive personal data with cryptographic keys. This technology has not only improved transaction approval rates but also significantly reduced fraud. It saved the company $650 million in the last year alone.
As such, Visa is well positioned to continue to deliver value to SMBs and reduce the rampant fraud rates seen around the world.
PayPal (PYPL)
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PayPal (NASDAQ:PYPL) continues to be a leading player thanks to its innovative approaches and strategic initiatives aimed at improving user experience and driving growth.
Recently, PayPal introduced several new features, including Fastlane. This one-click guest checkout experience dramatically speeds up transaction times for merchants and consumers. Additionally, the company introduced PayPal Smart Receipts. Leverage artificial intelligence (TO THE) to offer personalized recommendations and cashback rewards.
With a robust bilateral platform connecting 428 million active accounts, PayPal maintains a competitive advantage in the fintech sector. Its large user base and extensive transaction data enhance its ability to prevent fraud and improve authorization rates.
Furthermore, PYPL manages to maintain its significant first mover advantage in the industry despite the plethora of new entrants in the market. It also continues to innovate to maintain this advantage, which forms a powerful moat around the company.
Affirms (AFRM)
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To assert (NASDAQ:AFRCM) is gaining attention as a smart fintech stock thanks to its recent strategic moves and partnerships.
A significant development is Affirm’s collaboration with Apple (NASDAQ:AAPL). To assert “buy now, pay later“(BNP Paribas) the service will be integrated into Apple Pay later this year. This partnership allows Apple Pay users in the US to apply for Affirm BNPL loans during checkout, which could be a boon for the company.
Additionally, Affirm has seen positive momentum from financial analysts. Recently, Goldman Sachs coverage initiated of Affirm with a Strong Buy rating, highlighting it as a leading provider in the BNPL industry. This follows a similar strong buy rating from Mizuho.
AFRM’s solid growth is further supported by its recent quarterly earnings reportIt exceeded analysts’ expectations, demonstrating strong revenue growth of 51.2% year-on-year (YOY) last quarter.
All these factors together make AFRM one of my top picks for the smartest fintech stocks to buy.
As of the date of publication, Matthew Farley had (either directly or indirectly) any position in the securities mentioned in this article. Opinions expressed are those of the author, subject to InvestorPlace.com policies Publishing Guidelines.
Matthew began writing about financial markets during the cryptocurrency boom of 2017 and has also been a team member at several fintech startups. He then began writing about Australian and US stocks for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and New Scientist magazine, among others.