Fintech, short for financial technology, describes technologies that are being leveraged to make financial processes easier, more efficient, and more profitable. Fintech companies develop a variety of software platforms, apps, hardware solutions, and more to achieve these goals.

Can fintech stocks be part of a retirement portfolio?

Fintech stocks can play a part in a well-diversified retirement portfolio. It's important to know that some fintech stocks are speculative, but there are also some that are relatively low-risk and could be a good fit for a retirement account.

Are fintech stocks suitable for long-term investing?

Yes, fintech stocks can be excellent candidates for long-term investments. Many fintech stocks are rapidly growing companies with businesses that are still in the relatively early stages of capturing their market opportunity.

Are fintech stocks cyclical?

Generally speaking, fintech stocks are cyclical businesses for the most part. They largely perform in correlation with consumer spending and business investment. That said, not all fintech stocks are equally cyclical. For example, companies that develop technology for insurance companies aren't inherently cyclical since insurance is a rather recession-resistant business.

Best Fintech Stocks for 2026 and How to Invest

Best Fintech Stocks to Buy in 2026 and How to Invest in Them

By Matthew Frankel, CFP – Updated Apr 20, 2026 at 9:39 AM EST | Fact-checked by Frank Bass

Key Points

Fintech stocks cover digital payment solutions and peer-to-peer payment apps.
Top fintech examples include Block with a $43B cap and PayPal leading online payments.
Investing in fintech involves choosing stocks and using limit orders to manage price.

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Ticker Information Table
Name and ticker	Market cap	Current price	Industry
Block (NYSE:XYZ)	$42.9 billion	$71.63	Diversified Financial Services
PayPal (NASDAQ:PYPL)	$45.4 billion	$50.48	Diversified Financial Services
SoFi Technologies (NASDAQ:SOFI)	$23.5 billion	$18.44	Consumer Finance
Adyen (OTC:ADYEY)	$36.1 billion	$11.45	Diversified Financial Services
MercadoLibre (NASDAQ:MELI)	$93.0 billion	$1,835.22	Multiline Retail

Data as of Apr 25, 2026. Showing 5 of 5 tickers.

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1. Block

Formerly known as Square, Block's product suite has evolved from a way for merchants to accept credit cards via mobile phones into a large-scale financial ecosystem for individuals and small businesses. Block now processes payments for merchants at an annualized rate of over $250 billion and has its own banking subsidiary (Square Financial Services) and a thriving small business lending platform.

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NYSE: XYZ

Block

Today's Change

(2.43%) $1.70

Current Price

$71.63

Key Data Points

Market Cap

$43B

Day's Range

$69.62 - $72.11

52wk Range

$44.27 - $82.50

Volume

3.9M

Avg Vol

8.2M

Gross Margin

42.26%

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Cash App is especially interesting, with 58 million active monthly users as of early 2026 and virtually unlimited potential to expand its consumer financial services offerings. The platform already offers direct deposits, debit cards, the ability to buy and sell Bitcoin (BTC -0.15%), and a user-friendly stock trading platform. Cash App could still be in the early stages of monetization and has significant upside potential.

2. PayPal

PayPal Holdings is the undisputed leader in online payments -- and so much more. Its Venmo person-to-person payment platform has emerged as an industry leader, and its namesake PayPal brand continues to innovate how we pay for things, both online and off.

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NASDAQ: PYPL

PayPal

Today's Change

(1.46%) $0.72

Current Price

$50.48

Key Data Points

Market Cap

$45B

Day's Range

$49.58 - $50.58

52wk Range

$38.46 - $79.50

Volume

321K

Avg Vol

23M

Gross Margin

41.78%

Dividend Yield

0.55%

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PayPal has successfully boosted efficiency and rolled out exciting initiatives such as Fastlane checkout and an advertising platform in recent years. It also has agreements to be the first integrated payments wallet in ChatGPT and to collaborate with Google to develop new financial solutions for use across the tech giant's products.

With more than $10 billion in cash and investments on the balance sheet and $6 billion to $7 billion in annualized free cash flow, PayPal has the financial flexibility to pursue opportunities as they arise. The company has 439 million active accounts across more than 200 countries. In a nutshell, this is a highly profitable industry leader, and there's no reason to believe that will change anytime soon.

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3. SoFi Technologies

SoFi Technologies aims to disrupt the entire banking industry with its app-based financial ecosystem, and it's doing a pretty good job so far. The company offers checking and savings accounts, an investment platform, loans, credit cards, and more. It also owns the Galileo financial technology platform that provides the infrastructure for third-party clients' payment needs.

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NASDAQ: SOFI

SoFi Technologies

Today's Change

(0.66%) $0.12

Current Price

$18.44

Key Data Points

Market Cap

$24B

Day's Range

$18.17 - $18.57

52wk Range

$12.05 - $32.73

Volume

41M

Avg Vol

65M

Gross Margin

61.06%

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SoFi has been growing rapidly for years and still has impressive momentum. In the fourth quarter of 2025, SoFi's membership base grew by 35% year over year, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by an impressive 60%.

This could be just the beginning. SoFi's brand awareness in the United States is still under 10%, and it's still a relatively small bank. Management's stated goal is to become a top 10 financial institution, and it's definitely on the way.

4. Adyen

Adyen isn't exactly a household name to most U.S. investors, but it certainly belongs in the same conversations as Block and PayPal. Based in the Netherlands, Adyen provides payment processing solutions to businesses and has operations around the world (including a large U.S. presence). It offers payment solutions for in-person, online, and mobile channels.

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OTC: ADYEY

Adyen

Today's Change

(0.26%) $0.03

Current Price

$11.45

Key Data Points

Market Cap

$36B

Day's Range

$11.33 - $11.65

52wk Range

$9.45 - $19.94

Volume

1.8M

Avg Vol

1.8M

Gross Margin

83.44%

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However, unlike the other major payment processing tech companies, Adyen focuses almost exclusively on large businesses. Microsoft (MSFT +2.11%), Uber (UBER -0.08%), and McDonald's (MCD -1.05%) all rely on Adyen for their payment processing needs. You may recall that eBay dropped PayPal as its preferred payment processor several years ago, in favor of Adyen.

Adyen's growth has been impressive, and the business processes almost $1.4 trillion in annualized payment volume. Plus, Adyen is highly profitable, with a 53% EBITDA margin that could improve as the business scales.

5. MercadoLibre

MercadoLibre is often referred to as the Amazon (AMZN +3.47%) of Latin America, and the nickname certainly makes sense. The company has a massive e-commerce business with more than $70 billion in annualized merchandise sales volume, and it continues to grow at an impressive pace.

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NASDAQ: MELI

MercadoLibre

Today's Change

(1.44%) $26.02

Current Price

$1835.22

Key Data Points

Market Cap

$93B

Day's Range

$1799.71 - $1841.06

52wk Range

$1593.21 - $2645.22

Volume

299K

Avg Vol

538K

Gross Margin

44.50%

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The company also has a logistics platform (Mercado Envios) and a lending business (Mercado Credito), both of which have gained serious traction in recent years. Mercado Credito is especially interesting, with 90% year-over-year growth in the credit portfolio in the fourth quarter of 2025.

However, it's perhaps the Mercado Pago payments platform that is most exciting, at least from a fintech perspective. The business processes more than $300 billion in annualized payment volume and is growing much faster than the e-commerce business.

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The bottom line

Fintech is an exciting and rapidly evolving industry, and gaining exposure to leading fintech companies can be a smart move. If you have a relatively high level of risk tolerance, some of the stocks discussed in this article could be worth a closer look.

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Investing in fintech stock: FAQ

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelCFP

Matt Frankel, CFP has positions in Amazon, Block, MercadoLibre, PayPal, and SoFi Technologies and has the following options: long January 2027 $75 calls on PayPal, long January 2027 $95 calls on PayPal, short January 2027 $135 calls on PayPal, and short January 2027 $85 calls on PayPal. The Motley Fool has positions in and recommends Adyen, Amazon, Bitcoin, Block, MercadoLibre, Microsoft, PayPal, and Uber Technologies. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2026 $65 calls on PayPal. The Motley Fool has a disclosure policy.

Best Fintech Stocks to Buy in 2026 and How to Invest in Them

Key Points

1. Block

Key Data Points

2. PayPal

Key Data Points

3. SoFi Technologies

Key Data Points

4. Adyen

Key Data Points

5. MercadoLibre

Key Data Points

The bottom line

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Investing in fintech stock: FAQ

What is fintech?

What is fintech?

Can fintech stocks be part of a retirement portfolio?

Can fintech stocks be part of a retirement portfolio?

Are fintech stocks suitable for long-term investing?

Are fintech stocks suitable for long-term investing?

Are fintech stocks cyclical?

Are fintech stocks cyclical?

About the Author

Read Next

Stocks Mentioned

Premium Investing Services

Investing in fintech stock: FAQ

What is fintech?

What is fintech?

Can fintech stocks be part of a retirement portfolio?

Can fintech stocks be part of a retirement portfolio?

Are fintech stocks suitable for long-term investing?

Are fintech stocks suitable for long-term investing?

Are fintech stocks cyclical?

Are fintech stocks cyclical?

X top Fintech stocks for 2026

The Largest Financial Companies by Market Cap in April 2026

Best Tech Stocks to Buy in 2026 and How to Invest in Them

Best Bank Stocks for 2026 and How to Invest

Best Financial Stocks to Buy in 2026 and How to Invest in Them

Key Data Points

1. Block

3. SoFi Technologies

4. Adyen

How to buy fintech stocks

Benefits and risks of investing in fintech stocks

The bottom line

Related investing topics

FAQ

Key Data Points

Key Data Points

Key Data Points

Key Data Points

2. PayPal

5. MercadoLibre