The best Fintech shares to buy with $ 100
There is a strange common feature among shares in financial technology (fintech). That is, most of these companies’ shares are priced above $ 100.
Most, but not all. A handful of fintech names are priced far cheaper, giving you a chance to own a significant number of shares without breaking the bank. Here’s an overview of three solid fintech prospects that not only cost less than $ 100 each, but also have a combined cost per share that is still below $ 100.
Marqeta
Current price: $ 10.98
Marqeta (MQ 3.95%) is not a household name, but there is a good chance that you or someone in your household has benefited from the company’s product, perhaps without knowing it.
Image Source: Getty Images.
Simply put, Marqeta provides software that allows retailers to offer customized credit card accounts to consumers and business customers. However, the description still does not do the company justice. More to the point, Marqeta offers the kind of payment solutions that merchants wish they had access to many years ago, when credit card issuers and payment intermediaries were simply not technologically ready to offer them.
However, the technology is ready now. Digital wallets, real-time alerts, customizable platforms and expense controls are just a selection of Marqueta’s repertoire.
And the world is responding – at least the part of the person who understands the micro-nuances of the card payment business. The company recently joined Mastercardits Asia Pacific network activation program, and just a few days ago, Marqeta unveiled a new partnership with buy-now, pay-later-outfit Klarna. In mid-May, Marqeta and Evolve Bank & Trust announced that they were joining forces to provide a more robust card payment experience for the bank’s corporate customers.
These and a number of other new relationships are the reason why analysts collectively demand almost 40% revenue growth this year, after last year’s top line improvement of 78%.
Marqeta is not yet profitable. The progress it makes on that front – supported by solid sales growth in the meantime – makes this fintech name a compelling perspective for investors who can withstand some risk.
Adyen
Current price: $ 15.52
When you are asked to name a specific digital wallet, most of you will think PayPal Holdings before another name. And rightly so. The company was a pioneer in the payment aspect of online shopping when the credit card companies themselves did not manage the task. And while many options are now available, PayPal still simplifies about half of the world’s digital wallet payments.
If you think PayPal is the only major consumer-oriented online payment port, think again. We’re not talking about either Block, a respectable company aimed at small businesses instead of consumers. We are talking about Netherlands-based Adyen (ADYE.Y 1.51%)which slowly but surely creeps into PayPal’s turf.
Never heard of it? Do not sweat it. This is largely because if you are reading this, you are probably somewhere in the United States. Adyen is fine. It’s just going well elsewhere. Approximately 60% of the company’s operating income before tax booked in the second half of last year came from Europe, the Middle East and Africa, or the EMEA region. More than that, however, these EMEA revenues increased by an impressive 41% from year to year.
Oh, and do not let the over-the-counter listing lead you to the wrong conclusion. While it is certainly possible for an ADR (US Depository Receipt) such as Adyen to be listed on an actual US stock exchange, it is sometimes more of a problem and expense than it is worth. The company has a market value of almost $ 50 billion, which makes it much more like a traditional listed stock than a typical OTC listing.
Upstart Holdings
Current price: $ 48.54
Finally, add Upstart Holdings (OPST 3.79%) to the list of fintech stocks you can enter for less than $ 100 per share.
Chances are you are not familiar with it. But give it time. This is because Upstart does what credit bureaus like TransUnion and Equifax should undoubtedly be, but is not. It gives potential lenders the most accurate picture possible of a potential borrower’s true creditworthiness.
By using an artificial intelligence-driven algorithm that looks at the whole person instead of the more traditional factors – such as income and previous payment history – Upstart’s scoring system leads to 75% fewer defaults than the conventional credit approval process. Or looking at the data from a different perspective, Upstart’s algorithm allows lenders to approve 173% more loans than they would otherwise have without adding more defaults.
In other words, it is good for both the borrower and the lender.
And lenders are finally finding out. Sharonview Federal Credit Union, Firstmark Credit Union, Red Rocks Credit Union and Oriental Bank are just some of the lenders who have used Upstart Holdings this year alone to help them make more informed decisions about new loan requests. These and other banks and credit unions are a key reason why this company is estimated to increase its top line to 48% this year.
Do not be surprised if larger banks and lenders start asking Upstart for help in making loan decisions in the near future, either, as a cultural evolution focused on social justice and treating people as more than just numbers is gaining traction.
