Fintech blue chip stocks offer investors incredible growth potential
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Fintech is a compound word for financial technology. It refers to innovation in a field that has traditionally been very slow to adapt. Today, the sector is made up of a few blue chip stocks that represent companies that manufacture just about anything. Products and services range from back-end technologies that make banks run smoother to consumer apps that make it easier to transfer funds.
No matter what form it takes, fintech is a market that's predicted to grow rapidly in the coming years. It's currently projected to have an average compound annual growth rate of 16.5% from 2024 to 2032. That kind of growth should drive stock prices up dramatically.
The financial landscape continues to change rapidly, and now is the time to invest. Capital invested wisely today can grow into something greater in the future.
Visa (V)
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visa (New York Stock Exchange:FiveVisa is a pioneer of fintech stocks. Today, it's one of the world's best companies and a strong overall investment. To understand its origins, we need to go all the way back to 1958, when the company began issuing the first consumer credit cards. In 1976, Visa expanded its card issuing internationally, growing into the company we know today.
Visa's dominance in the fintech space is one of the reasons I consider it one of the best fintech stocks to buy. The company's dominance is reflected in its earnings: most recently, the company's revenue grew 10% and GAAP earnings grew 12%. From a fundamental perspective, there is a strong case to invest in this stock.
Additionally, the company continues to innovate, recently announcing new generative AI tools to prevent enumeration attacks, which use complex scripts and bots and result in more than $1.1 billion in fraud losses annually.
New Holdings (NU)
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New Holdings (New York Stock Exchange:new) is testament to just how valuable the global opportunity for fintech stocks has become, with many of the stories revolving around innovations that bring previously unbanked customers into the banking sector.
The company is expected to gain 19.3 million customers throughout 2023, bringing its total customer base to 93.9 million by the end of 2023. Nu Holdings then surpassed 100 million customers on May 8, becoming the first digital banking platform outside Asia to achieve this milestone. This has led to tremendous growth in key metrics, including net profit, which increased from $141.8 million in Q1 2023 to $378.8 million in Q1 2024.
Latin America continues to be a big focus when it comes to fintech as it brings lots of new customers to the banking sector, and Nu Holdings has performed particularly well in this regard thanks to its work in Brazil, where it now has 92 million customers, making it one of the better fintech stocks to buy.
MercadoLibre (MELI)
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MercadoLibre (Nasdaq:Meri) is a Latin American e-commerce giant and a Latin American fintech giant. Here we discuss the strengths that make it a great fintech stock to consider.
Both revenue and sales increased 36% in the first quarter of 2024. MercadoLibre's overall fundamentals remain strong, including its e-commerce and fintech divisions, with the latter being the focus here.
This segment is primarily comprised of Mercado Pago, which gained 49 million active users during the period. These user base numbers grew 38% year over year. This growth rate is significantly higher than the 32% growth rate the company reported last year. Mercado Libre management attributed the increase to stronger customer retention and an increase in fintech products on the platform.
The company issued more than 1.5 million credit cards in Brazil and Mexico in the first quarter. Investors can find several other indicators of MercadoLibre's continued rapid growth.
As of the date of publication, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author in accordance with InvestorPlace.com's publishing guidelines.
