There's a curious commonality among financial technology (fintech) stocks. That is, most of these companies' shares are priced above $100.
Most, but not all. A handful of fintech names are priced far more affordably, giving you a chance to own a meaningful number of shares without breaking the bank. Here's a rundown of three solid fintech prospects that not only cost less than $100 each but also sport a combined per-share cost that's still under $100.
Marqeta
Current price: $10.98
Marqeta (MQ 0.17%) isn't a household name, but there's a good chance you or someone in your household has benefited from the company's product, perhaps without even knowing it.
Image source: Getty Images.
Simply put, Marqeta provides software that allows retailers to offer customized credit card accounts to consumers and corporate clients. The description, however, still doesn't do the company justice. More to the point, Marqeta provides the sort of payment solutions that merchants wish they had access to years ago when credit card issuers and payment middlemen just weren't technologically ready to offer them.
The tech is ready now, though. Digital wallets, real-time notifications, customizable platforms, and spending controls are just a sampling of Marqeta's repertoire.
And the world is responding -- at least the part of it that understands the micro-nuances of the card payment business. The company recently joined Mastercard's Asia Pacific network enablement program, and just a few days back, Marqeta unveiled a new partnership with buy-now, pay-later outfit Klarna. In mid-May, Marqeta and Evolve Bank & Trust announced they were teaming up to provide a more robust card payment experience for the bank's business customers.
These and a slew of other new relationships are the reasons analysts are collectively calling for nearly 40% revenue growth this year, following last year's top-line improvement of 78%.
Marqeta isn't yet profitable. The progress it's making on that front, though -- backed by firm sales growth in the meantime -- makes this fintech name a compelling prospect for investors who can stomach a bit of risk.
Adyen
Current price: $15.52
When asked to name a specific digital wallet, most of you will think of PayPal Holdings before any other name. And rightfully so. The company pioneered the payment aspect of online shopping when credit card companies themselves weren't quite up to the task. And though plenty of alternatives are now available, PayPal still facilitates roughly half of the world's digital wallet payments.
If you think PayPal is the only major consumer-oriented online payment gateway, however, think again. We're also not talking about Block, a respectable company geared toward small businesses rather than consumers. We're talking about Netherlands-based Adyen (ADYE.Y -0.38%), which is slowly but surely creeping into PayPal's turf.
Never heard of it? Don't sweat it. That's largely because if you're reading this, you're probably somewhere in the United States. Adyen is doing well. It's just doing well elsewhere. About 60% of the company's pre-tax operating earnings booked during the second half of last year came from Europe, the Middle East, and Africa, or the EMEA region. More than that, though, those EMEA earnings were up an impressive 41% year over year.
Oh, and don't let the over-the-counter listing lead you to the wrong conclusion. While it's certainly possible for an ADR (American depositary receipt) like Adyen to be listed on an actual U.S. stock exchange, sometimes it's more of a hassle and expense than it's worth. The company boasts a nearly $50 billion market cap, making it much more like a traditionally listed equity than the typical OTC listing.
Upstart Holdings
Current price: $48.54
Finally, add Upstart Holdings (UPST -5.56%) to your list of fintech stocks you can step into for less than $100 per share.
Odds are you're not familiar with it. Give it time, though. That's because Upstart is doing what credit bureaus like TransUnion and Equifax arguably should be but aren't. It's providing prospective lenders with the most accurate picture possible of a potential borrower's true creditworthiness.
Using an artificial-intelligence-powered algorithm that looks at the whole person rather than the more traditional factors -- like income and past payment history -- Upstart's scoring system leads to 75% fewer defaults than the conventional credit approval process. Or looking at the data from a different perspective, Upstart's algorithm allows lenders to approve 173% more loans than they might otherwise have without adding more defaults.
In other words, it's good for both the borrower and the lender.
And lenders are finally figuring this out. Sharonview Federal Credit Union, Firstmark Credit Union, Red Rocks Credit Union, and Oriental Bank are just some of the lenders that have tapped Upstart Holdings this year alone to help them make more informed decisions about new loan requests. These and other banks and credit unions are a key reason this company is projected to grow its top line to the tune of 48% this year.
Don't be surprised if bigger banks and lenders start asking Upstart for help making loan decisions in the near future, either, as a cultural evolution focused on social equity and treating people like more than mere numbers gains traction.
