2 Unstoppable Fintech Stocks That Could Turn $200,000 To $1 Million By 2032

Getting rich over time can be as simple as choosing big players in industries with growth catalysts and sticking with it for the long haul.

The share of US e-commerce sales of total retail sales has doubled from 6.1% in 2013 to 12.9% in 2021. And with this expected to more than double to 30% by 2030, it is reasonable to believe that cash will be further supplanted as a payment method. This is why the Boston Consulting Group expects the global payments industry to nearly double from $1.5 trillion in 2021 to $2.9 trillion by 2030. Here are two fintech stocks that could turn $200,000 into $1 million over the next 10 years – or quintuple whatever amount you have. may have available for investment today by 2032.

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1. Visa

With more than 3.9 billion debit or credit cards issued worldwide as of December 31, Visa (W 1.32%) is the largest listed payment processor in the world.

Through the first half of the current fiscal year, which is due to end in September, the company’s net income rose 24.8% to $14.2 billion compared to the same period last year. This was made possible by momentum through the following three categories for Visa: payment volume, total cross-border volume and processed transactions.

The reopening of the borders helped to continue extraction in the first half of the year. This led to double-digit growth in the company’s cross-border volume total, which is defined as payments where the issuing country is different from the trading country. And it also resulted in double-digit payment volume (the dollar amount of transactions processed by Visa’s network) and growth in processed transactions (the total number of transactions handled by Visa’s infrastructure) through the first half of the fiscal year.

The company’s non-GAAP (adjusted) diluted earnings per share (EPS) rose 26.4% higher year over year to $3.54 in the first half. A 50 basis point decline in net margin to 53.4% ​​through the first half of the fiscal year was more than offset by a 2.1% decline in diluted outstanding to 2.2 billion.

Thanks to the aforementioned shift from cash to other payment methods, analysts estimate that Visa will deliver 18.1% annual revenue growth over the next five years. Assuming a stable valuation and 16% annual revenue growth over the next 10 years, Visa will turn a $100,000 investment into over $440,000 by 2032.

2. MasterCard

MasterCard (MA 1.66%) had 3 billion debit and credit cards in circulation as of 31 December. This positions it as the second largest listed payment processing company after Visa.

Like Visa, Mastercard posted double-digit growth across its business in the first quarter of its fiscal year, which ends in December. This is because Mastercard noted that cross-border travel exceeded 2019 levels in the first quarter for the first time since the start of the COVID-19 pandemic. As a result of the strong performance across the board, Mastercard’s net income rose 24.4% year-over-year to $5.2 billion for the first quarter. An increase in Mastercard’s net margin and a decrease in the number of diluted shares allowed adjusted diluted EPS to increase 58.6% year-over-year to $2.76 in the first quarter.

And analysts predict that Mastercard’s scale in a promising industry will translate into robust revenue growth of 23.3% annually over the next five years. Assuming 19% annual revenue growth and a steady valuation over the next decade, Mastercard will see an initial investment of $100,000 worth nearly $570,000 by 2032.