In this article, we will discuss 12 Best Fintech Stocks to Buy in 2025.
The terms finance and technology are combined to form the term fintech. This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions.
Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential.
In 2025, fintech is beginning to rebound. Global fintech funding rose to $8.5 billion in Q4 of 2024, a 12% increase from the previous quarter, according to CB Insights. While overall 2024 funding decreased 20% year on year, this is a significant improvement from the 48% and 44% declines in 2023 and 2022, respectively, showing that capital flows to the industry have stabilized.
The regulatory sentiment is also altering. For example, in a statement released on January 21, Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, provided a list of priorities, including plans to
“adopt a more open-minded approach to innovation and technology adoption, which includes a more transparent approach to fintech partnerships and to digital assets and tokenization, and engagement to address growing technology costs for community banks.”
This suggests a more relaxed regulatory framework, which could stimulate a resurgence of fintech activity.
The fact that some of the biggest fintech companies, such as Swedish buy now, pay later unicorn Klarna and neobank Chime, are now indicating plans to go public is another significant clue that the industry is recovering from the blues. Furthermore, since financial monitoring is a crucial component of public markets, this probably signals profitability improvement, which has been a significant difficulty for the fintech industry.
Tyler Griffin, managing partner and cofounder of Restive Partners, stated to American Banker:
“I’d bet that the chief financial officer of every late-stage, privately funded company is at least exploring what an IPO in the near term looks like.”
The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Nonetheless, enterprise adoption is speeding up. Within a year, Morgan Stanley introduced its “Debrief” assistant, which OpenAI powers. Meanwhile, BNY Mellon and OpenAI have partnered for several years.
With that said, here are the 12 Best Fintech Stocks To Buy in 2025.
An individual using a laptop to access the fintech platform to manage their finances.
Our Methodology
For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Interactive Brokers Group, Inc. (NASDAQ:IBKR)
Number of Hedge Fund Holders: 71
Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a fintech company that serves sophisticated traders, both retail and institutional, such as hedge funds and financial advisors. The majority of its users still pay for transactions, in contrast to zero-commission platforms, since they value its sophisticated trading tools, low margin rates, and high interest on unused funds. The firm draws active traders who employ more leverage and have larger balances, as evidenced by their clientele, which is composed of 45% institutional and 55% retail. It is a prominent fintech operator catering to high-frequency, high-value clients who seek cost-effectiveness and execution quality due to its strong, tech-driven platform and worldwide reach. About 30% of the company’s net revenue comes from foreign markets, while 70% comes from the US. The stock was up by more than 41% in the past 12 months, including it on our list of the Best Fintech Stocks.
Interactive Brokers Group, Inc. (NASDAQ:IBKR) achieved record-breaking results in the first quarter of 2025, adding 279,000 new accounts and growing its total number of accounts by 32% year over year. This was the company’s most significant growth rate since the meme stock era, and it had particularly impressive international momentum. The company achieved a new financial milestone for the 8th consecutive quarter with an adjusted pre-tax margin exceeding 70%, with quarterly commission revenue exceeding $500 million and a pre-tax margin of 74%. IBKR declared a 4-for-1 stock split and raised its dividend to $0.32 to increase shareholder value. The boost in trading volume was strong, with stock shares rising 47%, futures up 16%, and options up 25%. Overnight trading volume jumped by 250%, showing longer hours and more offerings.
Baron Focused Growth Fund stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its Q4 2024 investor letter:
“Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a leading online brokerage house that serves customers in over 200 countries. Positive returns during the quarter reflected strong fundamental performance, including year-over-year growth of 30% in accounts, 33% in client assets, and 45% in margin loans. These increases were driven largely by Interactive Brokers’ strength in international markets, as non-U.S. investors looked to access U.S. markets and equities, which largely outperformed their global peers in 2024. The company also participated in the broader rally of financial stocks following the Republican elections sweep. Expectations of heightened capital markets activity, a more pro-business regulator, and the potential for increasing market volatility all bode well for the company’s volumes, account growth, and earnings. We believe Interactive Brokers has a compelling long-term growth path and remain investors.”
11. Global Payments Inc. (NYSE:GPN)
Number of Hedge Fund Holders: 71
Revenue Growth (YoY): 4.68%
Global Payments Inc. (NYSE:GPN) is among the Best Fintech Stocks. It is a leading digital payment company that provides software and payment technologies to financial institutions, retailers, and other companies worldwide. It is a significant supplier of software and payment processing solutions with a focus on assisting small and medium-sized enterprises. The company has operations in 30 countries, and around one-fourth of its sales come from non-North American markets, particularly those in Europe and Asia. In 2019, the company merged with Total System Services in an all-stock deal, giving Total System Services’ shareholders 48% of the combined company’s shares. Issuer processing operations have been boosted by the merger.
In 2024, Global Payments Inc. (NYSE:GPN) achieved double-digit earnings growth, record adjusted operating margins, and 6% adjusted net revenue growth. The firm gave $1.8 billion to shareholders and generated $3 billion in adjusted free cash flow.
POS and software performance drove the merchant segment’s 7% Q4 growth, while North America’s annual recurring revenue opportunity jumped by 25%. Strategic expansion was supported by new partnerships with Whataburger and a global QSR, as well as important clients in the real estate and educational areas. In addition, Global Payments Inc. (NYSE:GPN) has increased its goal for operational transformation to over $600 million in run-rate operating income benefit annually by early 2027.
10. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 71
Revenue Growth (YoY): 9.05%
American Express Company (NYSE:AXP) is strongly established in the financial technology industry because of its growing range of tech-focused products, including buy now, pay later (BNPL) options and digital credit cards and mobile payments.
The firm has benefited from numerous years of faster growth as its loan and new card acquisitions have greatly surpassed those of its competitors. Historically, the business has prioritized payment networks over lenders. Even though it still only receives about 25% of its revenue from net interest income, this hasn’t changed. Over the past three years, American Express Company (NYSE:AXP)’s move to a younger cardholder base and more lending features on its cards has caused net interest income to grow at a compound annual growth rate of 26.1%, which has significantly boosted overall growth.
The business posted strong results in the first quarter of 2025, with earnings per share growing 9% from the previous year to $3.64, owing partially to a $73 million credit reserve release.
The price target for American Express Company (NYSE:AXP) was increased by Morgan Stanley from $246 to $250. Although spending decreased more than anticipated, the analyst pointed out that a minor EPS beat was driven by a reserve release. According to the analyst, credit appears “solid,” with delinquencies remaining below pre-COVID levels, but reserves must rise in Q2.
9. Nu Holdings Ltd. (NYSE:NU)
Number of Hedge Fund Holders: 79
Revenue Growth (YoY): 48.73%
A fintech business based in Brazil, Nu Holdings Ltd. (NYSE:NU) runs an online banking platform. The company serves more than 100 million consumers in Brazil, Mexico, and Colombia and provides a broad range of financial services through its entirely digital model. The business keeps introducing new, innovative products and growing its clientele in the areas where it operates. It announced in January 2025 that it has 10 million Mexican clients.
In 2024, Nu Holdings Ltd. (NYSE:NU) produced strong results, with sales rising 58% year over year to $11.5 billion, fueled by a 23% rise in average revenue per active client to $10.7. The company had a notable increase in its clientele, adding 20.4 million new subscribers to its total of 114 million users by the end of the year. Active customer growth was 22% year over year. Moreover, profitability improved as net income nearly doubled to about $2 billion, yielding an annualized return on equity of 28%. Operational efficiency reached new highs, with the efficiency ratio falling to 29.9%, placing the firm among the Best Fintech Stocks.
Jorge Kuri, a Morgan Stanley analyst, kept his “Buy” recommendation on Nu Holdings Ltd. (NYSE:NU) with a price objective of $18 on February 25. The analyst underlined the company’s great growth potential, which has been driven by notable net customer additions, high engagement among wealthy clients, and robust growth in Brazil’s credit card portfolio. The company’s secured and unsecured loan divisions are doing well, the analyst added. Secured loans are likely to increase their percentage of the credit book, which will boost return on equity and net interest margin, according to the firm. Furthermore, if accounting technicalities are taken into consideration, the credit card industry’s revenue yield appears to be more appealing than initially projected.
8. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 79
Revenue Growth (YoY): 58.23%
From a simple trading app, Robinhood Markets, Inc. (NASDAQ:HOOD) has evolved into a full-fledged financial platform with many revenue streams, making it one of the Best Fintech Stocks. It includes trading fees, interest income, and subscriptions. The company recently revealed strong customer engagement, more interest income, and record profits and revenue. The firm’s growth trajectory is still inexpensive, even with the stock’s recent surge. Although it was the first to offer commission-free trading for stocks, options, and cryptocurrencies, the company has since grown to offer premium subscription services, cash management, and retirement accounts. This multi-revenue strategy builds a more stable financial base by lowering reliance on unpredictable trading activities.
The company’s development prospects remain optimistic, with various expansion drivers: improved trading tools, futures trading, international market entry, and the thriving crypto segment, where trading revenue has surged by 700% year on year. While the TradePMR acquisition aims to provide financial advising services to higher-net-worth clients, the Bitstamp acquisition solidifies its position in the global cryptocurrency market. Robinhood Markets, Inc. (NASDAQ:HOOD) is successfully generating revenue from consumers while growing its clientele, as seen by the 86% annual growth in Gold memberships, as well as the rise in cash deposits and retirement accounts.
Following the company’s impressive Q4 2024 performance, Needham analysts maintained their “Buy” recommendation on the firm on February 13, 2025, raising the price target from $52 to $70. Robinhood Markets, Inc. (NASDAQ:HOOD) reported a strong 60% adjusted EBITDA margin for the quarter, owing to growth across all transaction sectors and effective cost control. According to Needham analysts, the amount of cryptocurrency trade is expected to expand significantly in the second half of 2025. The recent acquisition of Bitstamp, a cryptocurrency exchange, by the business is anticipated to raise the company’s cryptocurrency trading volumes by 40%. Needham’s optimistic assessment shows faith in the company’s capacity to maintain its growth trajectory through calculated actions.
7. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 86
Sea Limited (NYSE:SE) began as a gaming company, Garena, but in 2015 expanded into e-commerce. It runs Shopee, the biggest e-commerce platform in Southeast Asia based on gross merchandise value. A platform that operates in Indonesia, Taiwan, Vietnam, Thailand, Malaysia, the Philippines, and Brazil, Shopee is a hybrid C2C and B2C marketplace. The firm’s third segment, SeaMoney, which makes it one of the Best Fintech Stocks, offers loans, payments, digital banking, and insurance services.
Sea Limited (NYSE:SE) reported a strong Q4 2024 performance, with a good mix of robust growth and improved profitability. Adjusted EBITDA climbed 366% to $591 million, while revenue surged 37% to $5.0 billion, the strongest growth in over three years. Shopee, the company’s main e-commerce division, maintained its dominance in key areas, particularly Thailand and Indonesia, as its total Gross Merchandise Volume (GMV) rose 28% to $28.6 billion. Shopee’s marketplace take rate climbed by 160 basis points year over year to 12.8%, mostly due to improving ad adoption and higher commissions. Most importantly, the growth of GMV has not been hampered by previous fee hikes, showing Shopee’s pricing power based on the value it provides to sellers.
Loop Capital maintained its Buy rating on Sea Limited (NYSE:SE) shares and increased its price objective from $135 to $165. In a research note, the analyst informs investors that the company’s gaming franchise has shown resilience and is positioned to be a consistent cash contributor that grows with upside potential, while its fintech in emerging markets presents a huge growth opportunity, and the e-commerce ecosystem is a consumer data goldmine to power risk models. According to the company, the business should be a key position in long-term growth portfolios because of the stock’s appealing near-term setup.
6. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 89
Intuit Inc. (NASDAQ:INTU) is an American multinational business software company that specializes in financial technology and software. It possesses a variety of tax and small business software tools that hold leading market positions in their respective industries. The competing product that supports the firm’s growth among midsize businesses is Intuit Enterprise Suite, its entry-level enterprise resource planning platform that combines the front-office features of Mailchimp and the back-office features of QuickBooks. The matching tools from the company, which provide real-time expert support for QuickBooks, Mailchimp, and TurboTax, should also prove to be a useful tool for increasing average revenue per client.
TurboTax, Intuit Inc. (NASDAQ:INTU)’s main consumer business, is likely to post solid Q3 2025 results, driven by an increase in complex tax files. Analysts predict that as more taxpayers choose Intuit for complex tax solutions, consumer revenue will reach $4 billion, representing an 8% increase over the previous year. This shift to more advanced filings raises average selling prices, which contributes to overall revenue growth. It is included among the Best Fintech Stocks.
Intuit Inc. (NASDAQ:INTU)’s Global Business Solutions (GBS) division is driving long-term growth outside of tax season. It is anticipated that GBS will make about $11 billion in revenue, expanding into midsize firms and increasing revenue per customer at a rate of 16% each year. This particular market segment is now a vital component of its larger ecosystem, setting the business up for long-term double-digit growth.
Furthermore, it is anticipated that the company’s earnings per share will rise by 14% to $19.38, bolstered by continued share buybacks and potential margin growth.
5. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 94
PayPal Holdings, Inc. (NASDAQ:PYPL) is a major player in the online payments industry. Its Venmo person-to-person payment network has emerged as a market leader, and its name, PayPal, has completely changed how customers pay for products both online and offline.
The company’s new leadership team is aggressively promoting growth by introducing a new advertising platform, Fastlane checkout, and efficiency improvements. PayPal Holdings, Inc. (NASDAQ:PYPL) has the financial flexibility to take advantage of opportunities as they arise since it has over $11 billion in cash and assets on its balance sheet and over $5 billion in free cash flow annually. There are currently 432 million active accounts with the company across more than 200 countries. Given its profitability and dominant position in the market, the industry is likely to continue to grow. It is ranked fifth on our list of the Best Fintech Stocks.
Strategically, the business is focusing on innovation to improve its position in payments and commerce. In 2024, PayPal Holdings, Inc. (NASDAQ:PYPL) introduced and grew several innovative services, such as PayPal Everywhere, Fastlane, PayPal Complete Payments, and new branded checkout experiences. The company launched PayPal Everywhere in September 2024. The company expanded its spending and greatly boosted the use of debit cards due to the invention. By 2025, it intends to introduce PayPal Everywhere into European markets.
4. MercadoLibre, Inc. (NASDAQ:MELI)
Number of Hedge Fund Holders: 96
The largest e-commerce platform in Latin America is operated by MercadoLibre, Inc. (NASDAQ:MELI), which, as of the last report, has over 218 million active customers and 1 million active vendors in 18 countries using its financial solutions or commerce network. In addition to its primary online store, the company runs several supplementary businesses.
MercadoLibre, Inc. (NASDAQ:MELI) has a massive e-commerce business that generates well over $50 billion in merchandise sales volume annually and is still expanding at a remarkable rate. In recent years, the company has also established a financing business (Mercado Credito) and a logistics platform (Mercado Envios), both of which have seen significant growth. Mercado Credito is especially appealing, with a 77% year-over-year increase in the credit portfolio by late 2024, making the company one of the Best Fintech Stocks to buy in 2025.
From a fintech standpoint, though, the most attractive is the Mercado Pago payments platform. The company handles over $200 billion in annual payments and is expanding far more quickly than the e-commerce industry. The fact that Mercado Pago is expanding the fastest in terms of accepting payments outside of MercadoLibre, Inc. (NASDAQ:MELI)’s e-commerce platform is the most encouraging.
Joao Pedro Soares, a Citi analyst, maintained his Buy recommendation on MercadoLibre, Inc. (NASDAQ:MELI) shares and increased the price objective from $2,400 to $2,450. According to the firm, reduced country risk more than offsets the devaluation of the Argentine peso.
Lakehouse Global Growth Fund stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its February 2025 investor letter:
“The Funds largest position, e-commerce leader MercadoLibre, Inc. (NASDAQ:MELI), delivered another impressive quarterly result, combining robust growth with improving profitability. Net revenue grew 37% year-on-year in U.S. dollar terms to $6.1 billion while operating margins climbed to 13.5%, which was particularly pleasing given the company remains firmly in reinvestment mode. Key operational metrics for its marketplace underscored this strength, with items sold increasing 27%, unique buyers climbing 24% to a new high of 67 million and items per buyer increasing to 7.8. Importantly, the company continues to gain incremental market share in its primary regions, namely that of Brazil and Mexico.
The outperformance of the company’s advertising business also continues to be bright spot, growing 40% plus year-on-year in USD terms. As of today, the advertising business still only represents 2.1% of GMV, which is well below the level of more mature e-commerce peers globally and suggests there is still plenty of runway to grow the ads business. This not only provides another attractive growth vector but also a meaningful lever to improve profitability over time given the higher-margin nature of advertising revenue.”
3. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 113
Contrary to popular belief, Bank of America Corporation (NYSE:BAC) is a fintech firm. CEO Brian Moynihan and his team have performed an outstanding job of strengthening asset quality and stressing efficiency in the more than 15 years since the 2008–2009 financial crisis. The role of technology has been significant. Javelin has ranked the firm as the best bank for “Online Banking and Mobile Banking Functionality,” while Global Finance named it the “Best Consumer Digital Bank in the United States.” The firm will become more efficient as more clients utilize the bank’s first-rate digital channels. It is a distinctive and one of the Best Fintech Stocks that is worth exploring.
Bank of America Corporation (NYSE:BAC) reported $27.4 billion in revenue in the first quarter of 2025, a 6% year-over-year growth. Across all company segments, higher noninterest income was the main driver of the rise. Moreover, net interest income increased by 3% to $14.4 billion from the previous year.
The balance sheet of Bank of America Corporation (NYSE:BAC) continued to rise, with average deposits of $1.96 trillion for the seventh consecutive quarter. During the quarter, the business returned $6.5 billion to shareholders, including $2.0 billion in dividends on common stock and $4.5 billion in share repurchases.
After the company “leaps over lowered bar” with its quarterly performance, UBS increased its price objective on Bank of America Corporation (NYSE:BAC) from $46 to $50 and maintained a Buy rating on the shares.
2. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 151
In 2024, Mastercard Incorporated (NYSE:MA) processed about $10 trillion in transactions, making it the second-largest payment processor globally. The firm processes transactions in more than 150 currencies and has operations in more than 200 countries. The stock surged by more than 15% in the past year, making it one of the Best Fintech Stocks.
Mastercard Incorporated (NYSE:MA) reported $3.3 billion in net income and $3.64 earnings per share in the fourth quarter of 2024. Revenue reached $7.5 billion, up 14% from the previous year, while gross dollar volume and buy volume grew by 12% and 13%, respectively. The number of Mastercard and Maestro-branded cards in use was 3.5 billion by the end of 2024. The company paid $606 million in dividends and repurchased 6.5 million shares for $3.4 billion in Q4.
Mastercard Incorporated (NYSE:MA) announced on March 17 that it has partnered with ICBA Payments to improve card services for 1,400 community banks by implementing digital wallets, contactless payments, and 8-digit BINs. As part of the agreement, the business will handle communications and offer joint marketing assistance as ICBA Payments seamlessly transforms its programs.
Will Nance, a Goldman Sachs analyst, maintained a Buy recommendation on Mastercard Incorporated (NYSE:MA) shares and increased the price objective from $628 to $633. Financial technology firms have historically underperformed going into Q1 earnings because the macro picture “now appears much cloudier,” the analyst writes in a research note to investors. Goldman continues to value “higher beta names with idiosyncratic stories” but is “incrementally becoming more constructive on the more defensive names.”
1. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) is a global financial technology and digital payments firm based in the United States. To help people, companies, banks, and governments in more than 200 countries and territories make electronic payments, the company provides a range of payment solutions, such as credit cards, debit cards, and payment processing. The firm offers its products and services on mobile devices, laptops, tablets, and cards.
The company announced +10% revenue growth and +14% adjusted earnings per share growth, led by a +16% increase in cross-border payment volumes. It is astounding how many payment transactions and volumes Visa Inc. (NYSE:V) processes worldwide: $13.4 trillion in 2024, with 240 billion transactions. Despite this massive scale, there are still huge, unexplored potential markets, especially in the form of cash and checks that are still in circulation, which total, surprisingly, $11 trillion. Conventional banks that offer Visa-branded credit cards are at the center of this activity. However, its volumes are being driven outside traditional consumer payments by increasingly common payment methods, including peer-to-peer, business-to-consumer, and even business-to-business. The business still has plenty of room to grow at an attractive rate and provide value to its network in the years to come, as it is the Best Fintech Stock.
At the end of the quarter, Visa Inc. (NYSE:V) had over $16 billion in cash and cash equivalents. Its operating cash flow increased from $3.6 billion to $5.4 billion in the previous year. Additionally, the business paid out $5.1 billion in dividends and share repurchases to its stockholders. It has increased its dividend for 16 years in a row.
Overall, V ranks first among the 12 Best Fintech Stocks to Buy in 2025. While we acknowledge the potential of fintech companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than V but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
