It’s no secret that the world is shifting more towards a complete digitalization in almost every aspect of our lives. Many of us find ourselves sucked in the world of social media for hours every week, making purchases on Amazon that arrive on our front door steps by the next morning, and conducting many of our banking needs from our smartphones and laptops. The worldwide COVID-19 pandemic has only worked to accelerate this trend, as many brick and mortar locations were forced to either shut down entirely or operate at half capacity, resulting in many needing to shut their doors for good. A September 2020 study has shown that about half of people globally expect us to have a near cashless society by 2030, as digital payments exceeded cash ones for the first time last year. This has resulted in more and more people and investors to become interested in the fintech industry, and what ideas are most worth getting behind early. An article by InvestorPlace has determined their picks for four stocks they believe are good for long-term investors, and anyone looking to get into the fintech market soon should highly consider them.
The first stock on their list is Paysafe (PSFE), which is a platform that allows for digital transactions and wallets, as well as offering online cash solutions. The stock is currently sitting at a pretty affordable level, closing at around €11 almost every day last week. One of the main ways in which Paysafe sits apart from other similar companies is that they recently expanded their crypto offering in the United States with cryptocurrency exchange platform Coinbase, which certainly puts them in the right direction. Another stock mentioned is Square Inc. (SQ), which should come as no surprise to anyone that has been keeping up with fintech over the past few months. Earlier this year Square Inc.’s CEO Jack Dorsey was seen having discussions with rapper billionaire Jay-Z, later being revealed that Square would be acquiring Jay-Z’s music streaming platform Tidal. Square’s crown jewel however is payment processing app Cash App, which recently surpassed PayPal’s similar app Venmo, and closed the fourth quarter of 2020 with gross profits totaling approximately €313 million. One of the final stocks to look out for is Adyen, which is a global payments platform which surged by 178% last year with no signs of slowing down. Of course be sure to do thorough research into any company you’re considering investing in beforehand, but based on the predictions and trends it seems that fintech would be wise to get into sooner rather than later.