3 Fintech stocks that will be big winners in 2023

by James · February 2, 2023

By 2023, fintech is expected to grow rapidly as technology revolutionizes the financial industry. That should mean good things for fintech stocks. Investors should expect continued integration of fintech into traditional financial institutions, such as banks. This will provide a more seamless and efficient experience for customers, as they can access financial services through various channels, including mobile apps, online portals and personal interaction.

Further integration of blockchain technology into fintech can lead to more secure and transparent financial transactions. Overall, fintech will continue to play an important role in shaping the future of the financial services industry, making it more accessible, efficient and personalized for customers. In turn, fintech stocks, including those below, will grow significantly in the coming year.

Ticker	Company	Price
SQ	Block	$83.90
GPN	Global payments	$115.48
PAYO	Payoneer Global	$6.12

Table of Contents

Block (SQ)

Source: Sergei Elagin / Shutterstock.com

Block (SNEEZE:SQ) lager represents the fintech company that specializes in offering blockchain-based solutions for financial institutions and businesses. The company offers a range of services, including digital asset management, smart contract development and blockchain integration. Their products are built on various blockchain networks, such as Ethereum (ETH-USD) and Hyperledger, to increase the efficiency, security and transparency of financial transactions.

Most investors will recognize Block for its Square outlets and CashApp, which allows users to send and receive money instantly. CashApp has done particularly well with transaction and subscription-based revenue growing rapidly in 2022.

CashApp has increased its fees in recent years, which has led to increased profits. Analysts expect these trends to continue, with the majority giving SQ stock a one purchase assessment leading to an overall “overweight” rating.

Block faces competition from other fintech giants, including PayPal (NASDAQ:PYPL) and the Venmo app, which is the largest peer-to-peer cash payment app by volume.

Global Payments (GPN)

Office building for Global Payments in Brantford, Ontario, Canada. GPN stores.

Source: JHVEPhoto / Shutterstock

Global payments (SNEEZE:GPN) stock is another fintech expected to grow in 2023. It is a fintech company that provides payment processing services for businesses of all sizes. It offers a variety of payment solutions, including credit and debit card processing, electronic check processing and online payment processing. As the name suggests, the company operates in different countries and provides users with reliable and secure payments. The company also offers fraud prevention and data security services.

Global Payments is refocusing on the B2B side of the business after exiting the consumer side of the Netspend business to focus solely on business customers. This decision led to a decline in value reflected in the balance sheet and accounts in the 3rd quarter.

The merchant side of the business grew by 11% in the period. The company expects net sales to 2022 grow by 10% to 11% in 2022. If that turns out to be correct, expect GPN stock to rise as it effectively refocuses on trade and corporate customers. This suggests that the sale of the underbaked customer business was a good decision.

Payoneer Global (PAYO)

Payoneer Editorial Board. Illustration image for news about Payoneer - an American financial company.

Source: photo_gonzo / Shutterstock.com

Payoneer Global (NASDAQ:PAYO) stock is a leading global payment platform that enables businesses and professionals to easily send and receive payments across national borders. It offers electronic money transfers and payment solutions for e-commerce and operates in over 200 countries. It offers various services such as bank transfers, credit/debit card payments and e-check payments to its customers.

Payoneer is focused on small and medium-sized enterprises (SMEs) to allow equal participation in the global economy. In short, if you work online, Payoneer is there to help you work and get paid because of your talent, not your nationality.

Payoneer reported strong growth in the third quarter on 30% on an annualized basis, with revenues of $158.9 million. A strong point in favor of PAYO shares is that transaction costs as a percentage of revenue continue to fall through 2022, from 18.7% in Q1 to 17.6% by Q3.

Payoneer is particularly strong in high-growth emerging markets, including Latin America, where it reported 50% year-over-year revenue growth for the third quarter. Payoneer’s net loss through Q3 is significantly lower than in 2021 and amounted to $1.82 million.

At the date of publication, Alex Sirois 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 InvestorPlace.com Guidelines for publication.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in multiple industries from e-commerce to translation to education and leveraging his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.