As we approach the end of the week, financial stocks have been under scrutiny this past week as most of the companies within the industry reported their earnings. Top banks such as Citigroup (NYSE: C) and JPMorgan (NYSE: JPM) reported stellar performances. At the same time, many stock market investors are also focusing on fintech stocks as many view fintech to be the future of the industry. By now, most people would have accepted digital payments as a norm. Not only is it more efficient and convenient, but it also allows us to keep track of our spending easily. At this point, there isn’t much reason to believe that we will heavily rely on banknotes for payments again.
Well, many financial companies have made great strides to digitize their business operations. For instance, We saw Morgan Stanley (NYSE: MS) partnering with Microsoft Corporation (NASDAQ: MSFT) earlier this year to accelerate the firm’s digital transformation. Evidently, this will help the company shape the future of innovation in the financial service industry. So, do you think the digital transformation in the finance industry will continue? If you believe so, it may not be the worst idea to look at fintech stocks right now. With that in mind, here are four top names in the stock market today.Best Fintech Stocks To Watch This Month
- Square Inc (NYSE: SQ)
- Affirm Holdings Inc (NASDAQ: AFRM)
- Visa Inc (NYSE: V)
- American Express Company (NYSE: AXP)
First, let us look at the popular fintech company, Square. The company started off by enabling its sellers to accept card payments. Its Seller segment includes managed payment services, software solutions, hardware, and financial services for sellers. On the other hand, Cash App is a digital wallet available to consumers for peer-to-peer payments, bitcoin, and stock investing.
In September, the company and TikTok announced a new integration that will make it easy for sellers of all types and sizes. Sellers will be able to send fans directly from TikTok videos, ads, and shopping tabs on their profiles to products available in their existing Square Online store. This would help sellers reach new customers and grow their sales online.
On top of that, the company also announced the launch of Square Card in Canada. The aim is to address one of the biggest challenges small businesses face, managing their cash flow. Square believes that businesses should be able to access their money as soon as they make a sale. Given these positive developments, would SQ stock be a top fintech stock to watch now?Source: TD Ameritrade TOS
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Following that, we have “Buy Now, Pay Later” (BNPL) provider Affirm. The company enables its consumers to pay for a purchase over time through its technology-driven payments network and partnership with banks. It should be noted that its platform includes three elements, a point-of-sale payment solution, merchant commerce solutions, and a consumer-focused application. As one of the pioneers of BNPL, it is no surprise that investors are always on the lookout for AFRM stock.
Last month, Affirm launched the Adaptive Checkout™ feature. This latest product allows Affirm merchants to seamlessly offer customers even more choice and flexibility at checkout while increasing sales. This is possible by leveraging the company’s proprietary technology, building upon its existing product suite. According to the company, merchants using Adaptive Checkout in early access have seen, on average, a 26% increase in cart conversion and a 20% increase in sales.
For small businesses and merchants, these are statistics that would be highly appreciated. Furthermore, the company stock has also received a boost from Bank of America’s (NYSE: BAC) analyst, Jason Kupferberg. He believes that there’s still a big penetration story with BNPL. In light of this, he has raised his price target to $160 per share. With that in mind, would you add AFRM stock to your watchlist?Source: TD Ameritrade TOS Visa
Visa is a payments technology company that provides digital payments across more than 200 countries and territories. The company facilitates electronic funds transfers throughout the world through Visa-branded credit cards, debit cards, and prepaid cards. Recently, the company has been making strides to improve its services to stay at the top of the industry. V stock has risen more than 12% over the past year.
For starters, the company announced last week the expansion of Visa Installments in Australia. The company will be partnering with ANZ and Quest. Visa will allow Australian shoppers to access the popular BNPL financing via their existing ANZ credit cards. This feature is accessible whether you’re buying in-person or online without the need for a new credit card or credit line.
Visa’s presence in Australia has been a positive one. It also announced that its artificial intelligence (AI)-driven security has helped financial institutions prevent more than $263 million in fraud impacting Australian businesses in the past year. Such security features are increasingly critical as payments continue to rapidly shift online. With that being said, do you think V stock will have more room to run?Source: TD Ameritrade TOS American Express
To sum up the list, we have American Express (Amex). Essentially, it is an integrated payment company. Amex provides credit and charge cards to its customers around the world. AXP stock has been on a healthy uptrend for the past year. In fact, it has climbed more than 45% since the start of the year. Despite this, the company is not resting on its laurels.
Just yesterday, Amex launched a new Business Platinum Card in the U.S. The card delivers new benefits in top business spending categories, differentiated services, and travel perks. Besides, card members will have the opportunity to access more than $1,400 in value each year to help their businesses grow. Also, this new release addresses the strong demand and spending on its Business Card products.
Moreover, it has also recently announced the opening of the Centurion Lounge at London Heathrow Airport. The lounge will be the first Centurion Lounge in Europe and the company’s third to open this year. Guests can enjoy dedicated workspaces, comfortable seating, high-speed Wi-Fi while getting access to American Express Member Services Professionals to assist with on-site card and travel-related services. With such convenient features available, it would not be surprising that Amex would be a top pick among business travelers. So, do you think AXP stock is a top stock to buy moving forward?Source: TD Ameritrade TOS