The rapid digitization of the world is being driven by financial technology. It seeks to transform conventional ways of moving money around by promoting lower prices, time productivity, and better connectivity for businesses and customers to handle their finances by fusing the idea of financial services with modern technology.
When 2021 started, there was plenty of volatility to go around after a turbulent 2020, but the first half of the new year was great for stocks. Fintech research suggests 2021 as an eventful year. Things are looking up for the economy, with further stimulus payments, a drop in the unemployment rate to 6%, and record-high growth in the services sector in March.
Considering this, we are now going to list the top potential stocks to invest in this year in case you need leads.
1. NYSE: ALLY (Ally Financial Inc)
Ally Financial Inc. is a fintech company that provides financial services and is based in Michigan. Fintech research includes this company in the list as a profitable stock that you can invest-in in 2021.
While the company offers various services, such as car finance through direct banks, it is best known for its digital trading platform, which has over 350,000 users. The company uses the website as an online market for car auctions.
During the pandemic, the company’s stocks performed well because its online-only banking model aided customers who were stranded at home. To achieve growth goals, the company expects to duplicate its success in the auto industry by expanding into the mortgage market.
Wise, previously known as Transferwise, is a fintech company headquartered in London, established in 2011 by Kristo Käärmann and Taavet Hinrikus. The company was renamed from Transferwise to Wise earlier this year to represent a shifting market priority centred on worldwide currency transactions.
The business intends to go, official, later this year and has enlisted the support of Morgan Stanley and Goldman Sachs as joint venture partners. Private investors have put a $5 billion valuation on the company.
The company raised over $1 billion in funding so far. It moves more than $5 billion in foreign money transfers every month as the most popular option. Wise or Transferwise is among the potential stock for 2021.
3. NYSE: SQ (Square Inc)
Square, Inc is an electronic transactions and banking and finance company headquartered in San Francisco, founded in 2009 by Jack Dorsey and Jim McKelvey.
The Square Reader, a system that accepted credit card payments by attaching to a smartphone via the audio jack, Square Stand, a device that converted the Apple iPad into a point of sale for retail transactions for smaller companies that welcome card payments, are only a few of the items that the company has sold over the years.
In December 2020, the company had a market capitalization of more than $104 billion and sales over $9.5 billion. As for this year, experts believe Square is a top-performing stock with potential profits.
4. NASDAQ:PYPL (PayPal Holdings, Inc)
PayPal Holdings, Inc was established in Dec 1998. It is a California-based payment processing company as Confinity by Max Levchin, Peter Thiel, and Luke Nosek. As per the news, PayPal is preparing for the introduction of central virtual money.
PayPal is available in the vast majority of the world that allow online bank transfers. The company recently confirmed the introduction of a new function that allows users to pay with its own cryptocurrency.
Since PayPal is among the most prominent fintech company, it is going to reap profits even with volatility, so it is indeed a good option.