Fintech is arguably one of the better industries for investors to follow these days. With online payments and the need for contactless processing becoming the norm, the companies that provide the technology for these transactions are taking the center stage. From older more established businesses to new startups, investors see the potential for longevity and exceptionally stable long-term investment opportunities. Fintech is a necessity that has exploded in recent decades. Companies that provide business solutions for merchants are raking in the profits from the services and software they provide to make online and mobile transactions go through seamlessly. If you're looking to expand your portfolio with a few good long-term investment strategies, here are the five best fintech stocks you can buy and hold forever.
5. Paypal Holdings Inc.
Paypal Holdings Inc. is a global giant in the fintech industry. The last customer count for the company was more than 300 million with merchants across hundreds of markets using its platform throughout the world. In the past 12 months, Paypal stock has increased in price by more than double reaching a high of $244.01. It's one that investors either keep their eyes on or take the plunge and purchase stock. Paypal shows every indication that it is going to be around for a long time. It frequently offers discounts to help people with the Covid-19 crisis by waiving certain fees. Paypal is one of the biggest automatic payment systems in the world. it also offers to check cashing services via a remote platform. Millions rely on the service as a means of sending and receiving funds. Even through tumultuous financial times during this pandemic, Paypal Holdings has not missed a beat in its performance in the market. It's a stable and reliable stock that is likely to remain one you can hold onto forever.
4. Fiserv, Inc.
Fiserv is another fintech stock that is worth considering. It's one that has proven itself in the market with a solid growth rate that has exploded in the last 12 months. The company provides financial services technologies throughout the world for digital banking and account processing services. It offers merchant acquiring services as well. Since the time last March that the stock hit an all-time low, it has increased by 42 percent. The latest report revealed a quarterly revenue of $3.79 billion. Fiserv is on its way to the top. It partnered with Alliance late in 2020. The move expanded Fiserve to include a credit card issuance service. Additionally, Fiserv acquired Ondot Systems, which is a leading financial digital platform. This expanded the scope of merchant solutions, core banking, card-based payment services, and digital banking platforms that Fiserve can offer clients.
In the company's latest quarter posted in October, Fiserv reported total revenue of $3.79 billion for the quarter which marks a 21% year-over-year increase. CEO Frank Bisignano said, "Fiserv again delivered excellent financial results and free cash flow in an environment that continues to be impacted by a global pandemic," Adding to its current trajectory, the company partnered up with Alliance Data in late October. It is one of the largest card issuers in the U.S. which makes for a promising collaboration. Investors that are watching FISV stock could see this as a means for long-term growth for the company. Fiserv is also a stock to watch if you're looking at an investment that you can hold onto for a while.
3. Square Inc.
Square Inc. is a mobile payment, merchant services aggregator, and financial services company headquartered in San Francisco, California. Square has recently expanded into the small business market with its payment products and solutions including hardware and software Square has shown a pattern of consistently expanding its services to include more in terms of relevant features and systems by evolving to meet current demands for merchants. It specializes in solutions for the acceptance of credit cards via mobile phones. The most exciting aspect of Square Inc is the 200 percent increase in its stock over the past 12 months. Square's most recent quarterly report showed a gross profit of $794 million. This reflects a year-over-year increase of 59 percent. Square is a stock that you should be able to buy and hold onto as long as you like without damage.
Zuora is a company that provides a software platform for businesses to customize subscription-based activities to scale. The rationale for this model is the predictability of the revenue. It's also based on the insane profits that some businesses are experiencing. It provides a wonderful tool for strategic planning as well. This is an area that has seen explosive growth and it is believed to be the trending wave of the future. There is ample room for future growth, and it's believed that this is the trajectory that Zuora will maintain. Zuora stock is still cheaply valued, but that might not remain the case for long. Although the new startup had its share of divots in the past, there is hope that the company will gain level footing in the market shortly. The market cap is $1.6 billion for Zuora.
1. Pag Seguro Digital
Pag Seguro Digital is another fintech stock that is highly recommended for investors looking for long-term investments. The company is based in Brazil and is a known accelerator for the growth of Latin American digital commerce. Pag Seguro Digital provides a host of online banking services that are geared toward consumers. They also offer card-based payment processing services for businesses and mobile payment services. While most Brazilians still deal in cash, Pag Seguro Digital is getting in on the ground floor of the movement to modernize the payment system. The current pandemic is fueling the necessity for individuals and consumers to move toward a digital payment system. This couldn't have come at a better time for Pag Seguro Digital.
Written by Allen Lee
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