Back to Newsroom
Back to Newsroom

Fintech and the Rise of Digital Payments

Tuesday, 12 March 2019 10:25 AM

RedChip

ORLANDO, FL / ACCESSWIRE / March 12, 2019 / The growth of digital commerce continues to drive considerable changes in the global payments ecosystem.

In recent years, with advancements in fintech and the proliferation of mobile technology, change has accelerated.

Venture capital funding of fintech startups surpassed $32 billion in 2018, according to CB Insights.

Based on analyst estimates, fintech companies currently generate approximately $120 billion annually, representing less than 5% of the global financial sector's revenues.

By 2025, these same analysts forecast the industry will reach more than $265 billion.

Innovation in the evolving digital payments space is happening both behind the scenes (clearing and settlement) and at the point of sale (POS).

This innovation is impacting the payments ecosystem in profound ways and capturing ever greater volumes of payment flows for both banks and non-banks alike.

Fintech players span a broad spectrum and include card networks, merchant acquirers, POS players, digital payment platforms, person-to-person companies, bill payment companies, and money transfer companies.

Based on positive recent developments, here are a few fintech stocks to watch:

Green Dot (GDOT), founded in 1999, provides a wide variety of financial technology services, from accounts to processing and settlement. The company reported fourth quarter total operating revenues of $237.8 million and GAAP net income and EPS of $14.3 million and $0.26, respectively. The double-digit growth results are expected to continue as management reaffirmed forecasts for 2019 at the midpoint of guidance ranges. GDOT expects its full year non-GAAP total operating revenues to be between $1.114 billion and $1.134 billion, representing a 10% year-over-year increase at the mid-point, and adjusted EBITDA is expected to increase 16% year-over-year. Add in the company's growing banking-as-a-service segment, and the long-term outlook appears extremely bullish for this established player.

PayPal (PYPL) reported 2018 GAAP EPS of $1.71, up 16% over the prior year. It grew its account base another 17% last year, reaching 267 million active accounts, with a record 13.8 million added in the fourth quarter alone. Person-to-person transactions, such as the company's popular Venmo brand, were key growth drivers. Venmo processed approximately $19 billion of payments in the fourth quarter and $62 billion in payments for the full year. Another bright spot has been mobile payments which grew 40% year-over-year in the fourth quarter.

Cuentas (OTCQB: CUEN) is a relative newcomer in the payments space. It burst onto the scene last year through a series of key acquisitions and partnerships. While CUEN offers similar services as GDOT and PYPL, this upstart stands to become the dominant player for a sizeable niche: catering to the underbanked and unbanked Latino populations of the U.S., a market currently ignored by established operators. CUEN's comprehensive, cross border service offering and unique network of 30,000 bodegas in key markets in the U.S. give the company a nearly impenetrable competitive advantage. The company reported $62 million in sales in the first nine months of 2018. At a market cap of just over $3 million, the upside potential is tremendous. Learn more at www.cueninfo.com.

Disclaimer

RedChip Companies, Inc. research reports, company profiles and other investor relations materials, publications or presentations, including web content, are based on data obtained from sources we believe to be reliable but are not guaranteed as to accuracy and are not purported to be complete. As such, the information should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed in RedChip reports, company profiles, or other investor relations materials and presentations are subject to change. RedChip Companies and its affiliates may buy and sell shares of securities or options of the issuers mentioned on this website at any time.

The information contained herein is not intended to be used as the basis for investment decisions and should not be construed as advice intended to meet the particular investment needs of any investor. The information contained herein is not a representation or warranty and is not an offer or solicitation of an offer to buy or sell any security. To the fullest extent of the law, RedChip Companies, Inc., our specialists, advisors, and partners will not be liable to any person or entity for the quality, accuracy, completeness, reliability or timeliness of the information provided, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information provided to any person or entity (including but not limited to lost profits, loss of opportunities, trading losses and damages that may result from any inaccuracy or incompleteness of this information).

Stock market investing is inherently risky. RedChip Companies is not responsible for any gains or losses that result from the opinions expressed on this website, in its research reports, company profiles or in other investor relations materials or presentations that it publishes electronically or in print.

We strongly encourage all investors to conduct their own research before making any investment decision. For more information on stock market investing, visit the Securities and Exchange Commission ("SEC") at www.sec.gov.

Cuentas (OTCQB: CUEN) is a client of RedChip Companies, Inc. CUEN agreed to pay RedChip Companies, Inc. 10,000 shares of Rule 144 stock and a monthly cash fee for three (3) months of investor relation awareness services. Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. RedChip investor awareness services include the preparation of a research profile(s), multimedia marketing, and other awareness services.

Forward-Looking Statements

This press release contains forward-looking statements. Such statements include statements regarding our expectations, hopes, beliefs or intentions regarding the future, including but not limited to statements regarding our market, strategy, competition, development plans (including acquisitions and expansion), financing, anticipated revenues, operations, and compliance with applicable laws. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Factors that could cause actual results to differ materially from such forward-looking statements include the risks described in greater detail in the following paragraphs. All forward-looking statements in this document are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statement except where applicable law requires us to update these statements.

Contact:

Bruce Haase
407-644-4256
[email protected]

SOURCE: RedChip

Topic:
Company Update
Investor Relations
Back to newsroom
Back to Newsroom
Share by: