Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
The global stock market has had an eventful year so far. The COVID-19 pandemic saw a massive decline in stock value across the board, and the markets are just recovering from the effects. Surprisingly, some fintech firms actually seeing growth during this time. If you are looking to invest in fintech in July 2020, we’ve listed some of the best fintech stocks on the market.
The Best FinTech Stocks in July 2020
The following fintech firms have, thus far, maintained a positive outlook. This is due to a number of factors, such as a historically high performance, potential for future growth, and ongoing expansion.
Even before the pandemic, PayPal has been a giant of the fintech industry, and is one of the most well-known payment processors in the world. In the months leading up to the outbreak, PayPal had made the acquisition of Honey, a popular shopping extension, for $4 billion, which marked yet another expansion on the part of the company. During the pandemic, they made yet another bold move as it was announced that cryptocurrency transactions would be made available for their millions of users.
The rise of digital banking due to lockdown measures has spelled good news for PayPal. The company saw a 13% currency-neutral revenue growth as well as an increase of 10 million in new active users and a 19% increase in total payment volume. The company has also been tapped by the US government for the disbursement of small business loans.
Between their new acquisitions, the rise of digital payments, and the partnership with the US government, we should expect to see PayPal doing well over the next few months. This should also translate to their stock price. Based on all these, PayPal appears to be a good company to invest in for July 2020.
The explosion of fintech firms, especially during the pandemic, has paved the way for Intuit to thrive. The company deals with providing financial management tools as well as compliance products. The COVID-19 outbreak has seen more consumers and companies rely on fintech for virtual transactions.
As this need grows, the companies in question will need the services of a platform like Intuit, and this has been reflected in their growth projections. As such, their revenue growth rate for 2020 is projected at 10% – 11%. Should you invest in their stock, it is possible to reap the rewards over time.
Square’s most popular offering is the Cash App, a mobile application for the sending and receiving of funds with ease. The application had already been popular, but the lockdown measures implemented around the world saw it rise to new heights of popularity. In April 2020, the number of direct deposits on Cash App was triple what it had been in March, and this figure can be expected to remain high in the months to come.
This is because more people and businesses are turning to digital payments in the wake of the pandemic, and tools such as CashApp have become popular for accepting donations. Rosenblatt analyst Kenneth Hill even stated in July 2020 that CashApp is expected to solidify itself as a primary spending tool in the next five years. With this sort of long-term potential, it is believed that Square is a prime stock option for investments.
Q2 Holdings has made its name in providing digital solutions for banking and lending services. While COVID-19 saw banking halls close temporarily, Q2 holdings have seen its business actually increase in the last few months. In the first quarter of 2020, their revenue was increased by 30% from the last year, to the tune of $92.4 million.
That was not the only thing that saw an increase as the company saw their user base increase by 800,000 which was an increase of 18% from last year. As of now, their active users tally at 15.4 million. With this sort of growth amidst a global pandemic, Q2 Holdings would be a good option for stock investments.
Green Dot has seen an impressive 2020, with the first quarter being its most successful thus far. The success of the first quarter can be attributed to their processing of 310,000 more tax refunds than 2019. Once the pandemic hit, Green Dot once again saw a boost in business.
This is because the US government handed out stimulus checks to citizens, which sent even more business their way. This has put Green Dot in a healthy position to survive the pandemic and beyond. All these considered, Green Dot appears to be a healthy stock option to invest in.
Even amidst a global pandemic, there are still some fintech stocks that, from all indications, are a good bet to invest in. Go through our above guide for the best fintech stocks for July 2020.
Despite the world’s current situation, there are a number of investing options still on the table. If your budget is smaller, there are plenty of top stocks under $10. And, should our situation get worse, keep an eye out for the best stocks to buy during a second COVID-19 spike.
Before making any investment, we highly recommend you conduct comprehensive stock research and consult with a licensed financial advisor.