In this piece, we will take a look at the twenty fastest fintech companies in 2024. If you want to skip our overview of the financial technology industry and all the recent trends and developments, then you can take a look at the 5 Fastest Growing Fintech Companies In 2024.
Just like nearly every other industry out there, like industrial manufacturing and healthcare, finance has also been significantly disrupted by the onset of computing. Modern day financial systems are significantly different from what we were used to just a couple of years back. Global inter connectivity has meant that transferring funds worldwide takes just a couple of minutes or days depending on jurisdictions. At the same time, consumers no longer have to go to their banks to access their money since online and internet banking has provided them with greater flexibility.
Similarly, just as today’s banking is vastly different from the past, banks are not the only financial companies that regular consumers and businesses can use to manage their money. A growing sector of the market is dominated by firms that are part of the financial technology industry. These firms can be firms that offer digital wallets, like PayPal Holdings, Inc. (NASDAQ:PYPL), or payment gateways like Visa Inc. (NYSE:V). Additionally, the global rise in Internet use has also provided humanity with its own set of digital currencies – the most popular of which is the cryptocurrency coin Bitcoin.
Like all other stocks, financial technology stocks are also dependent on the broader market for their performance. For most of these firms, a robust economy is good for price performance. This is due to the nature of their business models. Firms like PayPal and Block, Inc. (NYSE:SQ) benefit from a robust economy because people are more likely to use their services. This means that the firms earn more commission, and as a result, investors also feel more confident in betting on their shares for future growth.
To see how this works, let’s consider Block and PayPal’s share price performance over the past 12 months and 2022. Starting from NYSE:SQ, the biggest catalyst to its share price over the past year came in October 2023 when the firm released its earnings results for the third quarter of 2023. This revealed that its premier product, CashApp, doubled monthly active users from June for a fresh tally of two million. This also accompanied an all time record for payment volumes, with the figure jumping to a cool $113 million. Naturally, investors were pleased as the shares soared by 11% in the immediate aftermath of the results.
Rewinding the hands of time to see how Block’s stock was doing in 2022 – when most of the market was convinced that a recession was just on the horizon – the shares sank a stunning 61% during the year. To jog your memory, in 2022 nearly all high growth and technology stocks, whether those in the consumer arena such as Apple Inc. (NASDAQ:AAPL) or others like Tesla, Inc. (NASDAQ:TSLA), had tanked and lost double digit percentages in the value due to rapidly rising interest rates and inflation. For Block, the downward spiral started at the tail end of December 2021 when it tried its hand at rebranding and jumped into crypto right at the cusp of Bitcoin’s share price crash.
However, while Block has done well over the past 12 months, PayPal hasn’t fared so well. Despite the fact that falling inflation, rising wages, and artificial intelligence have grown consumer and investor confidence in the stock market and the economy, PayPal is struggling because investors expect it to capture lucrative areas of the transaction processing market such as cross border payments. However, as other sources continue to contribute to growth, the stock is seeing restrained love despite the potential that artificial intelligence offers the payments service and digital wallet provider to streamline its services and reduce fraud. And just like Block, PayPal’s shares also bled 62% in 2022, with Q4 2021 earnings igniting a bloodbath after management chose to focus on revenue per user instead of user growth.
Yet, the future might be brighter for PayPal, and here’s what Wedgewood Partners, had to say about the firm in its fourth quarter of 2023 investor letter:
PayPal Holdings also contributed less to portfolio performance than most holdings during the fourth quarter. The total payment volume handled by PayPal during its most recent quarter grew +15%, which helped drive healthy revenue growth and +20% earnings per share growth. Critically, the Company’s new management team has significant opportunity to drive more revenue and earnings growth across the massive, multi-trillion-dollar payments addressable market. PayPal’s rapidly growing payment processing brand, Braintree, represents one of those revenue growth opportunities, either by raising prices, as 7 the Company had previously used a low-price strategy to establish a beachhead in this market, or by adding value-added services. PayPal’s branded checkout remains the largest volume and profit driver for the business, and we expect this to continue to track in-line with e-commerce growth in the near term, and eventually take share as the Company rolls out new features to its over +400 million users and +30 million merchants. We added to our position with the stock trading at just 10X forward earnings estimates during the quarter because there are many more long-term growth opportunities relative to most financial companies that trade for similar multiples and compared to technology companies that trade for much higher multiples.
With these details in mind, let’s look at some of the fastest growing financial technology companies. A couple of notable picks are Riot Platforms, Inc. (NASDAQ:RIOT), Marathon Digital Holdings, Inc. (NASDAQ:MARA), and Lemonade, Inc. (NYSE:LMND).
A person depositing money into an ATM, reflecting the various banking services offered.
Our Methodology
To make our list of the fastest growing financial technology companies in 2024, we ranked the U.S. based holdings of the Global X FinTech ETF by their fiver year annualized revenue growth rate and picked the fintech companies with the fastest growth. A five year rate instead of a three year rate was chosen because it removes the impact of macroeconomic fluctuations of recent years.
20 Fastest Growing Fintech Companies In 2024
20. Sapiens International Corporation N.V. (NASDAQ:SPNS)
5 Year Annualized Revenue Growth: 12.18%
Sapiens International Corporation N.V. (NASDAQ:SPNS) is an Israeli software firm that serves the needs of the insurance industry. The shares Buy on average, and the average analyst share price target is $33.60. It joins Riot Platforms, Inc. (NASDAQ:RIOT), Marathon Digital Holdings, Inc. (NASDAQ:MARA), and Lemonade, Inc. (NYSE:LMND) in our list of the fastest growing fintech companies.
19. Cantaloupe, Inc. (NASDAQ:CTLP)
5 Year Annualized Revenue Growth: 12.95%
Cantaloupe, Inc. (NASDAQ:CTLP) is a small hardware and software company headquartered in Malvern, Pennsylvania. It provides payment hardware and services to businesses. It started 2024 off on a strong note after moving into the sports market through an acquisition.
18. Fidelity National Information Services, Inc. (NYSE:FIS)
5 Year Annualized Revenue Growth: 14.02%
Fidelity National Information Services, Inc. (NYSE:FIS) is one of the biggest financial technology companies in the world. It provides digital banking, fraud detection, and other associated services. The shares are rated Buy on average, and the average share price target is $74.30.
17. AssetMark Financial Holdings, Inc. (NYSE:AMK)
5 Year Annualized Revenue Growth: 14.27%
AssetMark Financial Holdings, Inc. (NYSE:AMK) is a mid sized financial technology company headquartered in Concord, California. It provides software products to financial advisors to help them with their professional tasks. Its latest performance report for March saw AssetMark Financial Holdings, Inc. (NYSE:AMK) maintain the growth trajectory via posting higher flows and platform assets.
16. Vertex, Inc. (NASDAQ:VERX)
5 Year Annualized Revenue Growth: 16.01%
Vertex, Inc. (NASDAQ:VERX) is an American software company that provides compliance, reporting, and other software products. It scored a win in January 2024 after IDC nominated Vertex, Inc. (NASDAQ:VERX) as one of the top players in the tax SaaS industry.
15. Open Lending Corporation (NASDAQ:LPRO)
5 Year Annualized Revenue Growth: 17.61%
Open Lending Corporation (NASDAQ:LPRO), as the name suggests, provides software and services that help lenders determine loan risk, pricing, and other parameters. Higher rates seem to have taken a toll on its financial performance, as the firm has beaten analyst EPS estimates in just one of its four latest quarters.
14. Intuit Inc. (NASDAQ:INTU)
5 Year Annualized Revenue Growth: 19.23%
Intuit Inc. (NASDAQ:INTU) is a California based company that helps businesses and others manage their daily finances, reporting, and compliance requirements. The firm has been doing well on the financial front as of late since it has beaten analyst EPS estimates in all four of its latest quarters.
13. Global Payments Inc. (NYSE:GPN)
5 Year Annualized Revenue Growth: 19.25%
Global Payments Inc. (NYSE:GPN) provides merchants, retailers, and other institutions with the tools to manage their payments, payables, and other financial functions. It is also one of the strongest rated stocks on our list, with an average share rating of Strong Buy and an average share price target of $156.63.
12. Mitek Systems, Inc. (NASDAQ:MITK)
5 Year Annualized Revenue Growth: 22.11%
Mitek Systems, Inc. (NASDAQ:MITK) is a California based company that enables businesses and other users to process and manage checks. It was one of the worst performing financial technology stocks in April 2024 after the first quarter results came with a net loss and a revenue miss.
11. Payoneer Global Inc. (NASDAQ:PAYO)
5 Year Annualized Revenue Growth: 26.15%
Payoneer Global Inc. (NASDAQ:PAYO) is an American firm that enables businesses to make and receive payments through a digital platform. The firm has struggled on the financial front as of late since it has beaten analyst EPS estimates in just two out of its four latest quarters.
10. Fiserv, Inc. (NYSE:FI)
5 Year Annualized Revenue Growth: 26.81%
Fiserv, Inc. (NYSE:FI) is a sizeable payments platform provider headquartered in Milwaukee, Wisconsin. Where others have struggled, it has continued to shine as not only has Fiserv, Inc. (NYSE:FI) beaten analyst EPS estimates in all four latest quarters but the shares are also rated Strong Buy on average. The average analyst share price target is $162.33.
9. HealthEquity, Inc. (NASDAQ:HQY)
5 Year Annualized Revenue Growth: 28.33%
HealthEquity, Inc. (NASDAQ:HQY) is a healthcare financial technology company that enables people to manage their expenses, make payments, and conduct other operations. The firm fed its share into the AI hype train in April 2024 when it released a survey that outlined significant interest in the technology among high ranking directors in the health benefits industry.
8. Bitfarms Ltd. (NASDAQ:BITF)
5 Year Annualized Revenue Growth: 34.06%
Bitfarms Ltd. (NASDAQ:BITF) is the first cryptocurrency firm on our list of the fastest growing fintech companies. It is a Bitcoin miner with a presence in the U.S., Canada, and other countries. The recent bloodbath in Bitcoin hasn’t done the firm any favors as it has missed analyst EPS estimates in all four of its latest quarters.
7. Shift4 Payments, Inc. (NYSE:FOUR)
5 Year Annualized Revenue Growth: 35.54%
Shift4 Payments, Inc. (NYSE:FOUR) is a payments processing company headquartered in Center Valley, Pennsylvania. The firm expanded its product portfolio in April 2024 after announcing new products and features for the hospitality industry. Shift4 Payments, Inc. (NYSE:FOUR)’s CEO Jared Issacman is known for his space exploration missions and is gearing up for yet another flight with everyone’s favorite company, SpaceX.
6. Upstart Holdings, Inc. (NASDAQ:UPST)
5 Year Annualized Revenue Growth: 39.68%
Upstart Holdings, Inc. (NASDAQ:UPST) is a California based software company that enables borrowers and lenders to connect with each other. One of the poorest rated stocks on our list, the shares are rated Hold on average, and the average share price target is $19.82.
Riot Platforms, Inc. (NASDAQ:RIOT), Upstart Holdings, Inc. (NASDAQ:UPST), Marathon Digital Holdings, Inc. (NASDAQ:MARA), and Lemonade, Inc. (NYSE:LMND). are some rapidly growing fintech companies.
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Disclosure. None. 20 Fastest Growing Fintech Companies In 2024 was initially published on Insider Monkey.