Gaining faster than FinTech IPO Group’s 8% rally

Earnings season is upon us, and the FinTech IPO index deluge has yet to swell and break.

Without a doubt, there will be waves of commentary about the state of consumers, about inflation and lending and the digitization of financial services.

But by any stretch of the imagination, the past five trading sessions have been kind to the FinTech IPO index, with platforms leading the way to an overall 8% gain for the group.

Source: PYMNTS (Until 20.7.22)

As for the platforms that led the way, Affirm was up more than 42%, continuing a streak that saw buy-now-pay-later (BNPL) names drive the index to a 5% gain last week.

See also: CE100 index rises 5% as BNPL shares make strong gains

Payoneer surged nearly 25%, continuing its uptrend on the heels of an upgrade earlier this week from Goldman Sachs.

Double digit gains

Marqeta rallied more than 16%, as shares surged following news that the company was named the preferred payment processor for Opal Plus, the new transit program for Transport for NSW, in partnership with Mastercard Prepaid Managed Services.

The New South Wales Government is introducing Opal Plus, a Mobility-as-a-Service app in the Opal system that “allows subscribers to plan, book and pay for a tailored commuter experience directly from their mobile devices,” according to the announcement.

Nubank also shot up more than 16%, on the heels of reports last week that the company is growing faster than expected in Mexico, according to CEO David Velez in an interview with Reuters. This was confirmed by data, according to the report.

Nu Mexico has reached 2.1 million customers in about a year and a half, equivalent to 2.2% of the country’s total adult population. In Brazil, by comparison, Nubank reached 53.9 million customers, corresponding to 30% of the adult population, after nine years.

Meanwhile, Nuvei advanced 15%, boosted by last week’s announcement that the company has extended its partnership with Italy-based online betting firm GoldBet. The connection enables the platform to integrate new payment methods into the checkout functionality, including Apple Pay.

None of this is meant to suggest that a rising tide lifted all boats this past week. Futu Holdings, which last week said it has received a Trust Business License from the Monetary Authority of Singapore, fell 4.6%.

Beyond these announcements, there are some signs that consumer spending — which, of course, determines the fate and fortunes of many of these FinTech players — may face growing headwinds. In just one example, AT&T may be signaling some turbulence in consumers’ cash flow.

Read more: AT&T dials up latest signs of distress for paycheck-to-paycheck economy

“There is clearly a certain dynamism in the economy. We have customers who are stretching out their payments a little bit,” AT&T CEO John Stankey told CNBC. “We expect them to continue to pay their bills, but they are taking longer to do so. It is not atypical in an economic cycle.”

The payouts come as a majority of the US lives paycheck to paycheck, already struggling to make ends meet. By extension, it points to problems for some of the platforms and digital upstarts that have tried to change the way we pay and do business. We’ll know more as the earnings assault gathers pace.