In this article, we will be taking a look at the 10 Most Promising Fintech Stocks to Buy Now.
On July 6, CNBC reported that Swedish fintech company Klarna Group plc (NYSE:KLAR), known for its buy now, pay later offerings, stated that it has applied to federal and state regulators to establish a US bank subsidiary.
If regulators approve the application, Klarna Bank USA would become a Federal Deposit Insurance Corp.-backed institution chartered in Utah.
According to the report by CNBC, Klarna Group plc’s (NYSE:KLAR) application is the latest sign that fintech companies, which mostly relied on partnerships with US banks to offer services, now want to own their own charters. In April, fintech firm Mercury also secured conditional approval to establish its own bank, joining several fintech and crypto companies looking to become part of the traditional banking system.
Owning a bank gives fintech companies several advantages. It allows them to use their own customer deposits to fund loans instead of relying on more expensive wholesale financing. It would also enable them to offer products such as checking accounts and credit cards directly to customers while reducing their dependence on third-party banking partners.
With this background in mind, let’s take a look at the 10 most promising fintech stocks to buy now.
Our Methodology
To compile our list of the 10 most promising fintech stocks to buy now, we looked for the biggest fintech companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best fintech stocks. Next, we focused on the top 10 most promising stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2026 database of 1022 elite hedge funds. Finally, the 10 most promising fintech stocks were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2026.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Most Promising Fintech Stocks to Buy Now
10. Fiserv, Inc. (NASDAQ:FISV)
Number of Hedge Fund Holders: 61
Fiserv, Inc. (NASDAQ:FISV) is one of the most promising fintech stocks to buy now. On July 9, Goldman Sachs analyst Will Nance reduced the firm’s price target on Fiserv, Inc. (NASDAQ:FISV) from $70 to $60 and maintained a Neutral rating on the stock.
The analyst noted that the payments sector appears to be in a relatively strong position heading into Q2 earnings because of improved fundamentals, despite weak share performance so far this year.
Also on July 9, Wells Fargo cut its price target on Fiserv, Inc. (NASDAQ:FISV) from $62 to $56 and maintained its Equal Weight rating on the stock.
The research firm said it believes the company’s second-quarter estimates are achievable, but does not expect the earnings report to provide a boost to the stock. According to Wells Fargo, investors remain focused on the company’s steep expected growth in the second half of the year and its sudden CEO change.
Wells Fargo said key areas to watch include guidance for merchant transactions, the leadership transition, visibility into the expected second-half acceleration, the core banking business, and the potential debit network sale.
Fiserv, Inc. (NASDAQ:FISV) is a global financial technology and payments company that offers solutions for banking, merchant acquiring, global commerce, billing and payments, and point-of-sale.
9. Block, Inc. (NYSE:XYZ)
Number of Hedge Fund Holders: 63
Block, Inc. (NYSE:XYZ) is one of the most promising fintech stocks to buy now. On July 9, Mizuho reaffirmed its Outperform rating on Block, Inc. (NYSE:XYZ) with a price target of $100 on the stock.
The research firm said its recent survey of Cash App users to assess the potential of Neighbourhoods, the company’s new loyalty program for both Cash App users and Sellers, showed encouraging results.
Around two-thirds of users suggested they would either be likely or very likely to join the Neighborhoods loyalty program. Mizuho expects that Block, Inc.’s (NYSE:XYZ) new loyalty program has the potential to support user engagement and monthly active user growth over time.
During the company’s first-quarter earnings call, Block, Inc.’s (NYSE:XYZ) management described Neighborhoods as “probably the biggest lever” that the company has and pointed out that it “has the ability to just fundamentally change the size of our network and the trajectory of growth, but we’re in early days there.”
Management also noted that approximately half of the Neighborhoods following had not been active on Cash App in the month before they joined the platform.
Block, Inc. (NYSE:XYZ) is an American financial technology company that offers a range of financial products and services to consumers and merchants.
8. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 65
Coinbase Global, Inc. (NASDAQ:COIN) is one of the most promising fintech stocks to buy now. On July 7, US Tiger Securities upgraded its rating on Coinbase Global, Inc. (NASDAQ:COIN) from Hold to Buy and set a price target of $200 on the stock.
The research firm has a more constructive view on Bitcoin’s risk and reward outlook. According to US Tiger Securities, Bitcoin has likely entered the last quartile of the current bear market.
Bitcoin has fallen sharply from its cycle high reached in October 2025. The firm also pointed out that the cryptocurrency has experienced a significant reset in on-chain profitability and the market has seen about three meaningful waves of realized-loss capitulation.
US Tiger Securities said it is not trying to predict the exact market bottom. However, the firm believes that the largest part of cycle de-risking is already behind the market. The firm believes the remaining downside increasingly looks like the final phase of a bear market.
Analyst Bo Pei wrote that the potential upside is expected to come from the next cycle of liquidity recovery, institutional allocation, and improving crypto risk appetite.
Coinbase Global, Inc. (NASDAQ:COIN) is an American company that operates a platform for people and institutions to engage with crypto. It allows users to buy, sell, transfer, trade, stake, and store cryptocurrency assets.
7. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 76
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the most promising fintech stocks to buy now. On July 9, Goldman Sachs raised its price target on PayPal Holdings, Inc. (NASDAQ:PYPL) from $41 to $48 and maintained its Sell rating on the stock.
In a research note, the firm said that the payments sector is relatively well positioned ahead of Q2 earnings, supported by stronger business fundamentals despite the weak performance year-to-date.
A day earlier, on July 8, Barclays analyst Nik Cremo initiated coverage of PayPal Holdings, Inc. (NASDAQ:PYPL), giving the stock an Underweight rating and setting the price target for the stock at $42.
The analyst noted that after a broad reset across the sector, investors can focus on identifying and selecting companies with durable business models that are well positioned for long term growth. These comments come as Barclays launched coverage of the US payments and fintech industry.
PayPal Holdings, Inc. (NASDAQ:PYPL) is a global financial technology company that operates an online payment system and offers digital payments to consumers and merchants. The company provides online payment solutions in about 200 markets.
6. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 84
Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the most promising fintech stocks to buy now. On July 7, Compass Point lifted its price target on Robinhood Markets, Inc. (NASDAQ:HOOD) from $107 to $130 and kept its Buy rating on the stock.
The research firm expects the company to report an 18% EBITDA beat in Q2, supported by stronger volumes and take rates. The last time Robinhood Markets, Inc. (NASDAQ:HOOD) exceeded analyst expectations was in the third quarter of 2025, when the stock was trading near $130.
Robinhood Markets, Inc. (NASDAQ:HOOD) experienced a sharp decline after missing Wall Street expectations in two straight quarters. However, since its Q1 earnings miss, the stock has now rebounded.
Compass Point believes Robinhood Markets, Inc. (NASDAQ:HOOD) has room to outperform expectations in the second half of 2026, supported by higher take rates, prediction volumes, and savings from the company’s 10% workforce reduction, which was announced on June 16, 2026. Prediction volumes for the second quarter were 57% higher than in the fourth quarter of 2025, despite a seasonally softer sports calendar.
Robinhood Markets, Inc. (NASDAQ:HOOD) is an American financial services and technology company that offers trading services for stocks, options, futures, swaps, and crypto.
While we acknowledge the potential of HOOD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HOOD and that has 100x upside potential, check out our report about the cheapest AI stock.
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