In this article, we will discuss the 15 most valuable fintech companies in the world. You can skip our detailed analysis of these companies, and go directly to 5 Most Valuable Fintech Companies in the World.
Fintech Industry: An Analysis
According to a report by Vantage Market Research, the global fintech market size, which stood at about $112 million last year, is expected to soar to a whopping $332 billion by 2028. A Wall Street Journal report published earlier this year sheds light on how the growth of fintech companies is forcing mainstream banks to make everything easier for their customer base, especially younger customers, to stay relevant. For example, in a bid to compete with fintech companies, Capital One said it plans to eliminate all overdraft fees and nonsufficient-funds fees for its consumer banking customers. Bank of America also announced to eliminate nonsufficient-funds fees in February.
Fintech is a budding industry that has seen rapid growth in recent years. According to a yearly report by Crunchbase, 16% of the unicorns are from the finance sector with a collective value of $500 billion. Crunchbase Intellias, a software company that deals in financial tech, has concluded that global adaptation of fintech reached 64% for the year 2020. The majority of these deals were online transactions and digital payment methods according to the Global Fintech Adaptation Index.
According to Jeff Cantwell, an analyst at research firm Wells Fargo, there’s a $1.5 trillion growth market opportunity for fintech companies, with annualized growth of 6% over the coming decade. This growth will be driven by the increased adoption of digital payment methods, for both consumers and merchants alike. Another trend is the transition of some firms towards a cloud-based model of ‘as-a-service’, where subscription fees are charged for e-wallets, account processing and related services.
It’s because of the huge growth potential of the fintech sector that famous investors like Cathie Wood are pouring millions into fintech stocks for long-term gains. Some of the notable fintech stocks hedge funds like include Paypal Holdings, Inc. (NASDAQ:PYPL), Fiserv, Inc. (NASDAQ:FISV) and Global Payments Inc. (NYSE:GPN).
Note: All market caps mentioned in the article are as of July 2022.
15. Wise plc (LSE:WISE.L)
Market Cap: 4.7 billion GBP
TransferWise, rebranded as Wise at the start of 2021, is a London-based Fintech company founded in 2011. The company provides low rate, and multi-currency global money transfer and exchange services. Packages can be tailored for both personal and business use. The company went public in 2021 via direct listing at the price of 8 pounds per share.
14. Nexi S.p.A. (MIL:NEXI.MI)
Valuation: $8.2 billion
Founded in 1985, Nexi Payments S.p.A. is an Italian IT service management company that aspires to change the way individuals and businesses make their day-to-day payments and collections. The company provides high-quality solutions for making and accepting digital payments. In October 2020, Nexi and European financial technology companies SIA merged a deal to strengthen their position in the digital payments space.
13. Nubank (Private)
Valuation: $10 billion
Another emerging Fintech unicorn is Nubank which is based in San Paulo, Brazil. As one of the biggest companies in Latin America, Nubank offers banking services, money transfers, and insurances for both personal and business use. Set up in 2012 that company grew at a steady pace throughout the years.
12. Ripple (Private)
Valuation: $10 billion
Another name in blockchain technology in finance is Ripple. The US-based company started in 2012 is a payment transfer and exchange system that operates globally by using blockchain technology.
11. Klarna (Private)
Valuation: $10.6 billion
Klarna Bank, or Klarna, is a Swedish company based in Stockholm. It is part of Klarna Group that was founded in 2005. It primarily offers global payment and shopping services along with the facility of banking and investments. “Buy Now, Pay Later” is one of the most famous services offered by the platform.
10. Robinhood Markets, Inc. (NASDAQ:HOOD)
Market Cap: $7.4 billion
Robinhood Markets, Inc. (NASDAQ:HOOD) is a stock investment company that allows equal access for everyone to the investment in the trade market. This ends the need of paying heavy commissions through traditional investment methods.
Robinhood Markets (NASDAQ:HOOD) is in the limelight these days on the back of news that FTX was interested in buying the company. However, FTX has clarified that no active talks are in progress. JMP analyst Devin Ryan has also highlighted some complications that FTX would have in acquiring Robinhood Markets (NASDAQ:HOOD).
9. Paytm (Private)
Valuation: $16 billion
India’s Paytm is another leading name in the fintech industry that puts South Asia on the global finance map. Based in Noida, the company initially started as a mobile recharge app and later made its way to finance. Paytm stands for Pay through Mobile, which is a very widely used, holistic app for making a variety of payments including bills, recharges, movie tickets, hotel bookings, and flights. The app operates on the consumer as well as business level, giving several startups a reliable method for online transactions.
8. JD Digits (Private)
Valuation: $18 billion
Founded in July 2013, China’s JD Digits started from a small consumer finance startup affiliated with JD’s e-commerce ecosystem. The idea is to connect financial and physical industries with digital technology. It aims to improve the level of internet, digitization, and intelligence, and to promote the development of the real economy.
7. Adyen N.V. (XAMS:ADYEN.AS)
Valuation: $22 billion
With Adyen as a billion-dollar company, Europe is not far behind in adjusting to the latest advances of the finance industry. Based in Amsterdam, Netherlands, Adyen is the top fintech company in Europe. Its latest technology allows its large client base to make payments all over the world. Ayden takes into account the local payment methods and opens gateways to fast and reliable transactions without geographical barriers.
6. Stripe (Private)
Valuation: $36 billion
Stripe ranks third as an Irish-American company with its headquarters based in San Francisco and Dublin. It is a decade-old company that has seen continuous growth in its valuation ever since it was established. Stripe is predominantly a payment software company that deals with efficient digital transactions for established businesses and startups. Some of its notable investors include Elon Musk and Peter Thiel. Like Paypal Holdings, Inc. (NASDAQ:PYPL), Fiserv, Inc. (NASDAQ:FISV) and Global Payments Inc. (NYSE:GPN), Stripe is one of the most famous fintech companies in the world.
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Disclosure. None. 15 Most Valuable Fintech Companies in the World is originally published on Insider Monkey.