Here Are the Best-Performing Fintech Stocks by 2030

The financial technology, or fintech, sector has had a turbulent time in recent years. Low interest rates helped spur companies to develop new products and services, but rapid interest rate hikes by the Federal Reserve have slowed fintech’s growth.

However, a handful of companies have emerged stronger and are on track to become potential winners for investors. Here are three of them fintech actions which could work well in the years to come.

1. SoFi Technologies

SoFi Technologies (NASDAQ: SOFI) offers its customers a variety of fintech services, from savings accounts to investments and loans. And even though people now have a choice of online banks, SoFi continues to attract customers.

The company added 643,000 customers in the second quarter, a 41% increase over the same period last year, bringing SoFi’s total customer base to an impressive 8.8 million. The company’s sales growth during the quarter was equally impressive, increasing 20% ​​to $598.6 million.

But it’s SoFi’s profitability that long-term investors should consider. The company just posted its third consecutive quarter of profitability and has made impressive progress in a short period of time. Net income came in at $17.4 million in the most recent quarter, compared with a loss of $47.5 million in the same quarter last year.

Despite SoFi’s momentum, the company’s stock is still trading at a discount. SoFi’s price-to-sales (P/S) ratio is just 2.8 at recent prices, down from a P/S of 4 at the same time last year. With the company’s strong customer base and profitability, I believe SoFi is poised to become a strong fintech player in the coming years.

2. PayPal Holdings

As an established player in digital payments, PayPal (NASDAQ:PYPL) has been forced to adapt to a growing fintech space and fend off more competitors than ever before. To navigate a new world of payments, the company has hit the reset button on its entire leadership team over the past year.

Under the new direction PayPal is turning its fortunes around, according to CEO Alex Chriss. In the second quarter, PayPal’s generally accepted accounting principles (GAAP) earnings and revenue beat analysts’ estimates, rising 17% and 8%, respectively. The company’s number of transactions per active account also increased 11%.

But investors shouldn’t just consider PayPal’s recent growth. The company is also on solid financial footing, with free cash flow of $1.4 billion during the quarter and cash and cash equivalents of more than $18 billion.

With PayPal’s new management turning the company around, long-term investors have an opportunity to get in on PayPal’s stock while it’s still down. The stock price has fallen 70% over the past three years. But with the company’s recovery well underway, betting on the company’s current recovery could make sense in a few years.

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3. Visa

Visa‘s (NYSE: V) Payment processing companies collect fees when businesses make sales through their payment platforms. The company is dominant…