With the global digital payments sector continuing to see significant growth, three fintech stocks remain undervalued and poised for growth according to InvestorPlace. These companies are: MercadoLibre, Adyen, and Block (formerly Square).
- MercadoLibre (MELI): Known as Latin America’s leading platform for e-commerce and fintech, MercadoLibre has experienced considerable growth with shares rapidly rising in value throughout 2023. Its largest markets are in Argentina, Brazil, and Mexico, and its payments platform Mercado Pago continues to expand.
- Adyen (ADYEY): This Netherlands-based payments firm has seen significant growth, specifically in the third quarter of 2023 with revenue and payment volumes both increasing by over 20%. Although less known to U.S. investors, Adyen’s influence extends beyond Europe to Africa, Latin America, and Asia.
- Block (SQ): Previously known as Square, Block has expanded to include various payment businesses while managing to maintain a strong presence in the fintech market. Despite its volatility and struggle with losses, Block is seen as a lucrative investment as it intends to broaden its strategy to include cryptocurrencies and other businesses.
Fintech stocks are anticipated to continue to see annual growth rates of approximately 14% through 2030, as the financial world gradually shifts towards digital innovations. Despite the volatility experienced by fintech stocks in 2023, the stabilizing market and broader economy signal a good time to invest, particularly in undervalued fintech stocks.
Investors looking to capitalize on the digital payments sector should consider these stocks in December as they offer significant potential for returns. Despite perceived risks associated with these stocks, their ongoing growth, and innovative strategies offer an attractive proposition for investment.
