Why These 3 Fintech Stocks Could Soar in 2023

With the arrival of the new year, now is a great time to start looking ahead and assessing potential market opportunities in 2023. Fintech was a major casualty during this downturn, but some of these companies are well positioned for growth in the coming years. Therefore, the current downturn is an ideal time to invest in the best fintech stocks to buy.

Despite being overvalued in some cases last year, many companies still have excellent products and services that can effectively withstand the economic distress at this time. We can hold our breath and anticipate what 2023 has in store, but now is the time to consider these potential opportunities with fresh eyes and an open mind. That said, here are three of the best fintech stocks to buy right now.

Block (SQ)

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Block (SNEEZE:SQ) is one of the leading fintech companies with a tremendous track record of increasing top line results. Sales have grown by over 60% over the past five years on average and have proven remarkably robust.

Moreover, it still has an amazing long-term growth trajectory with $200 billion in annual payment volume and over $45 trillion in global cashless payment volume, reflecting how much further the business can expand. Cash App has capitalized on this potential and is continuously expanding its capabilities to create cross-selling opportunities among its massive 50 million user base.

Jack Dorsey’s vision of creating an “ecosystem of ecosystems” in Block has been a journey that began way back in 2009 with the humble Square credit card reader, which provided a revolutionary payment platform for small businesses. Fast forward to 2013, the groundbreaking Cash App, a peer-to-peer payment service, was added to the mix. However, it wasn’t until 2019 that Block started exploring ways to connect these two powerful payment systems – which led us to where we are today. It is incredibly exciting to see what further developments Block will have in store in the near future.

nCino (NCNO)

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nCino (NASDAQ:NCNO) offers cloud-based solutions for financial institutions that make operations more flexible. Their product line includes loan origination systems that eliminate tedious paperwork, improve accuracy and provide greater transparency in the bank’s workflow. Among the functions are automated dissemination functions that efficiently organize borrower data by extracting key financial information from the accounts to loan applications. By using nCino’s platforms and solutions, banks can effectively streamline loan processing and increase efficiency while delivering improved customer experiences.

nCino is quickly becoming a major player in banking solutions as some of the largest banks, such as Wells Fargo and Santander, has integrated its services into its infrastructures. This impressive growth has been underlined by recent announcements such as its multi-year contract with the Bank of New Zealand. As existing customers use more nCino products and services, their contracts have the potential to grow in value, further strengthening nCino’s position in the financial markets. Despite potential headwinds from an impending recession and greater scrutiny of bankers’ spending, nCino’s subscription revenue has continued to grow each quarter.

Toast (TOAST)

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Toast (SNEEZE:TOAST) is leading the digital transformation of the restaurant industry in both the US and Ireland. Its robust cloud platform offers multiple solutions for restaurateurs who add multiple new locations every quarter. During the third quarter, location growth was incredibly encouraging, with 5,500 locations added to take the total number of locations up to 74,000. Sustainable growth through location increases is a sure way to bring in more customers and more income opportunities.

Toast had a very impressive third quarter, resulting in an increase in guidance for the full year. Their estimated revenue has now surpassed $2.69 billion, beating analysts’ expectations and impressing onlookers. This strong sales execution is particularly noteworthy, considering that it was achieved in a turbulent macro environment. With Toast capturing that huge market opportunity, most analysts are optimistic about its potential future success.

At the date of publication, Muslim Farooque 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, subject to the InvestorPlace.com Publishing Guidelines.