3 Best Fintech Stocks To Buy

The marriage of the financial industry and technology has resulted in an industry that is expected to reach a market value of $309 billion and deliver a 25% compound annual growth rate through 2022. Fintech applies to businesses that combine technology and financial services that can be delivered to customers in a non-traditional manner, such as online or via apps.

SQUARE INC (NYSE: SQ)

You have likely experienced Square, either as a customer or as a business owner. This digital payment company started in 2009. The name comes from the shape of the reader that's plugged into the user's smartphone or tablet. Your credit card is swiped through the reader and payment is delivered. This is a prime example of how technology has disrupted a business. Prior to Square, a business was required to establish accounts with a bank, purchase or lease expensive card reading equipment and connect via phone lines. That business is still there, but Square has made it easy for any business, new or old, to accept credit or debit cards.

Square has gross revenue of $9.49 billion in 2020 with a net income of $213 million.

SHOPIFY INC (NYSE: SHOP)

Shopify is a multinational e-commerce business hosting online stores. It will help owners organize the online layout of the store and accept and receive payments. Shopify's clients include Whole Foods Market, Hyatt Hotels, Fitbit, and Penguin Books.

Shopify had 1Q21 gross revenue of $988 million with a net income of $126 billion. The net income number is skewed because of a $1.3 billion profit Affirm; a company purchase by Shopify that recently went public.

MERCADOLIBRE INC (NASDAQ: MELI)

This is an Argentine company that is incorporated in the US. It specializes in e-commerce, operating online marketplaces, and online auctions.

MercadoLibre is the largest company of its kind in Latin America. It is present in every major country in South America and, based on online usage, is the market leader in each of these countries. MercadoLibre services an area of 635 million people. The Internet penetration rate in their service area is the fastest-growing in the world.

4Q20 gross revenue was $1.3 billion, up 148% year-over-year, with a net income of $489 million.