A few years ago, fintech (Financial Technology) was still largely a fringe phenomenon: digital‑first banks, payments startups, and niche lending platforms squaring off with legacy banks. Over time, that niche quietly grew into a serious corner of finance. According to the 2025 report by Boston Consulting Group (BCG) together with QED Investors, global fintech revenues rose 21 % in 2024, up from 13 % in 2023, easily outpacing the ~6 % growth rate in the broader financial‑services sector.
According to a recent estimate from IMARC Group, the global fintech market, encompassing payments, lending, digital banking, and related services, was valued at approximately $218.8 billion in 2024. IMARC projects that by 2033, this market could grow to ~$ 828.4 billion, implying a compound annual growth rate of ~15.8% over 2025–2033.
Yet even with such growth, the industry remains a small fragment of the overall financial‑services universe. The BCG/QED report estimates that fintechs represent only about 3 % of global banking and insurance revenues as of 2024. That implies that a vast amount of white space remains: legacy banking and insurance still dominate the market.
What stands out is fintech’s shift from frenetic growth to discipline. The same 2025 BCG/QED findings note that, among publicly traded fintech firms, average EBITDA margins rose, and roughly 69% of those firms were profitable in 2024, up from under half in the prior year. That suggests the highest‑performance fintechs are turning unit economics and efficiency into real gains.
From now on, BCG and QED point to several tailwinds: increasing adoption of digital payments and digital banking, expansion into lending and credit via fintech, deeper integration of financial infrastructure, and the potential for new technology layers, especially AI, to automate risk, underwriting, payments, and customer service. Emerging markets are also expected to play a growing role in global fintech revenue growth, which could potentially shift global dynamics and increase cross‑border financial flows.
In plain terms, fintech has graduated from a niche disruptor to a serious, growing, yet still underpenetrated segment of global finance. The space has matured: revenue growth remains robust, but now profitability and sustainable operations are coming to the fore. The runway remains long, as global banking and insurance revenues dwarf fintech’s share. Whether fintech companies, especially U.S.-based ones, can convert that runway into lasting value depends on their ability to scale efficiently, adopt new technologies (such as AI), and expand into tightly regulated yet large legacy domains such as credit, lending, and banking infrastructure.
Methodology
To develop our list, we screened for stocks whose core product offering is FinTech. From this pool, we selected stocks with a 12-month average upside of more than 20%. Then we selected the stocks with the highest number of hedge funds holding stakes as of Q3 and ranked them by this metric. The data on average upside is from Marketbeat and is as of December 16.
Why are we interested in the stocks that hedge funds pile into? 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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. Q2 Holdings, Inc. (NYSE:QTWO)
Number of Hedge Fund Holders: 28
Price Upside: 33.6%
Q2 Holdings, Inc. (NYSE:QTWO) is one of the best FinTech stocks to buy in 2026, and Wall Street still leans constructive even after a choppy tape.
Analysts tracked by MarketBeat currently assign QTWO a “Moderate Buy” consensus rating, with an average 12‑month price target of $97.40. That implies roughly 34% upside from the stock’s latest levels. The full range of price targets spans $60 to $126, showing some dispersion in views but a generally bullish skew among the coverage. In other words, the Street isn’t pricing in a moonshot, but the average target still sits comfortably above current trading levels if execution holds.
December also saw a burst of insider selling that investors will notice, even if some was mechanical. Chief Business Officer Kirk L. Coleman sold 8,559 shares on December 10, 2025, at $73.68 per share. Chief Operating Officer Himagiri Mukkamala sold 3,024 shares on December 10, 2025, at $73.68, described in filings as an issuer-mandated sale to cover tax withholding tied to RSU vesting. Separately, Chief Revenue Officer Michael A. Volanoski sold a combined 9,300 shares across December 10 and December 12, 2025, including 4,177 shares at $73.68 and 5,123 shares at a weighted average of $75.46, with the latter executed under a pre-arranged trading plan.
Q2 Holdings, Inc. (NYSE:QTWO) provides digital banking and lending software to banks and credit unions, helping them onboard customers, deliver mobile and online experiences, and run modern account workflows across retail and small-business banking.
11. Clearwater Analytics Holdings, Inc. (NYSE:CWAN)
Number of Hedge Funds: 33
Median Upside: 37.3%
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the best FinTech stocks to buy in 2026.
On December 10, 2025, DA Davidson analyst Peter Heckmann reiterated a Buy rating on Clearwater Analytics and maintained his $30 price target, following reports of Starboard Value’s stake in the company. In that same vein, DA Davidson has framed the situation as one where a credible strategic outcome could demand a meaningfully higher valuation than the stock had been trading at, with some coverage corroborating the view that a potential buyout could land in the $30 to $34 per share range.
That December stance lines up with the same analyst’s November 2025 positioning. In a Nov 18, 2025 note carried by The Fly, Heckmann kept a Buy rating and a $30 target. His discussion leaned heavily on takeover logic, suggesting Clearwater could be worth roughly $30 to $34 in a buyout scenario after reports of external interest from PE firms Warburg Pincus and Permira (as reported by Bloomberg). Another November writeup similarly characterized DA Davidson’s view as essentially: “If this is getting bought, it probably is not getting bought cheaply,” with the $30 area repeatedly appearing as the threshold that starts to look serious.
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides cloud-based investment accounting, reporting, and analytics software for insurers, asset managers, and institutional investors, helping clients manage complex portfolios with real-time, automated data.
10. Remitly Global, Inc. (NASDAQ:RELY)
Number of Hedge Fund Holders: 38
Median Upside: 83.9%
Remitly Global, Inc. (NASDAQ:RELY) is one of the best FinTech stocks to buy in 2026.
On December 11, Citizens reiterated its Market Outperform rating on Remitly Global and maintained a $20 price target, arguing the stock had already “overcorrected” ahead of the company’s Investor Day. The firm cited a negative mix that weighed on sentiment, including immigration-related headlines, a visible slowdown in revenue growth, and investor anxiety about the rollout of a small-dollar lending product. Even so, Citizens leaned on Remitly’s position as a leading all-digital remittance provider and said that the setup still supports durable growth, while management’s margin guidance makes the medium-term profitability path easier to underwrite. Citizens also noted that the market’s reaction to the updated outlook suggested some of the bigger perceived headwinds may be easing.
That Investor Day context matters because Remitly used December 9 to frame itself as more than just “send money home.” Management laid out 2026 targets that call for high-teens revenue growth and adjusted EBITDA of $300 million to $320 million, then extended the runway to 2028 with $2.6 billion to $3.0 billion in revenue and $575 million to $600 million in adjusted EBITDA, implying a 20%–22% margin. The company also emphasized achieving the “Rule of 40” goal by 2028 and highlighted initiatives like Remitly One and Remitly Business as part of pushing into adjacent categories and deepening customer engagement.
Remitly Global, Inc. (NASDAQ:RELY) operates a cross-border payments app focused on digital remittances, helping customers send money internationally. The company is working to broaden into additional financial services while pursuing improved profitability over time.
9. Chime Financial, Inc. (NASDAQ:CHYM)
Number of Hedge Funds: 39
Median Upside: 29.5%
Chime Financial, Inc. (NASDAQ:CHYM) is one of the best FinTech stocks to buy in 2026.
Wall Street’s tone on the stock turned notably constructive in December. On December 11, 2025, B. Riley initiated coverage with a Buy rating and a $35 price target, framing Chime as a profitable, high-growth neobank with disciplined customer acquisition costs and strong margins. B. Riley pointed to Q3 2025 gross margin of 87% and transaction margin of 69%, arguing that Chime’s model can sustain growth with very low marginal costs and expand margins as scale builds. The firm also said Street numbers for 2026 looked too conservative given management commentary about mid-50% or higher incremental EBITDA margins, and it anchored the $35 target on a 24x multiple applied to its 2027 EPS estimate.
That optimism came on top of a major December call from Goldman. On December 1, 2025, Goldman Sachs upgraded Chime from Neutral to Buy and set a $27 price target, saying investors were underappreciating the take-rate tailwinds from the new Chime Card announced in September. Goldman projected Chime’s 2027 take rate could reach 1.23% versus a 1.14% consensus estimate, and modeled GAAP net income of $77 million in 2026 and $307 million in 2027, well ahead of consensus, as profitability arrives faster than expected.
Chime Financial, Inc. (NASDAQ:CHYM) is a U.S.-based consumer fintech company that provides a mobile-focused financial platform, offering products such as spending accounts and debit cards through partner banks.
8. Corpay, Inc. (NYSE:CPAY)
Number of Hedge Funds: 45
Median Upside: 20.1%
Corpay, Inc. (NYSE:CPAY) is one of the best FinTech stocks to buy in 2026.
On December 8, 2025, Corpay said it completed Mastercard’s $300 million minority investment in Corpay’s cross-border business, a transaction that values that unit at roughly $13 billion. The company framed the close as the follow-through to the deal Mastercard announced earlier in 2025, which implied an equity stake of about 2.3% in the cross-border operation. Beyond the capital, the bigger strategic signal is distribution: Corpay and Mastercard also signed a new commercial partnership designed to bring Corpay’s cross-border services to Mastercard’s financial institution customer base.
Corpay added that it is expanding its use of Mastercard Move across additional geographies, specifically for time-sensitive, real-time transactions. Management positioned the investment and partnership as part of a broader corporate payments push, pointing to recent moves including acquisitions of Paymerang, GPS, and Alpha Group, plus Corpay’s minority investment in AvidXchange. Chairman and CEO Ron Clarke said the company expects Corporate Payments 2026 revenue to surpass $2 billion and represent more than 40% of total company revenue next year, tying the Mastercard deal directly to scale and mix shifts.
Goldman Sachs & Co. served as the exclusive financial advisor to Corpay, while Jones Day acted as legal counsel.
Corpay, Inc (NYSE:CPAY) is a corporate payments company that provides commercial card programs and AP automation solutions, alongside cross-border payment and currency risk management tools for businesses and institutions.
7. Shift4 Payments, Inc. (NYSE:FOUR)
Number of Hedge Fund Holders: 45
Median Upside: 47.8%
Shift4 Payments, Inc. (NYSE:FOUR) is one of the best FinTech stocks to buy in 2026.
Freedom Capital Markets initiated coverage on Shift4 Payments on December 11 at Buy with an $80 price target. The firm’s analyst called Shift4 a leading integrated payments and SaaS platform across verticals such as restaurants, hospitality, and stadiums, while noting the stock’s recent slump. In its note, Freedom tied that underperformance to a mix of leadership changes, management’s mixed-macro commentary with choppy same-store sales trends, and lingering skepticism around the company’s Global Blue acquisition.
Even so, the analyst argued the setup looks attractive after the pullback, acknowledging execution risk on Global Blue but leaning on management’s M&A history and the embedded cross-sell opportunity in payments. Freedom also framed its valuation around 9x its 2026 estimated adjusted EBITDA of $1.25 billion, landing at the $80 target.
In other news, Shift4 said on December 3, 2025, that its subsidiaries priced a €435 million tack-on offering of 5.500% senior notes due 2033 at an issue price of 102.50%, with an expected close on December 8, 2025. The company said net proceeds are intended for general corporate purposes, including debt repayment, strategic acquisitions, growth initiatives, and potential share repurchases.
Shift4 Payments, Inc. (NYSE:FOUR) is a payments and commerce technology company that enables businesses to accept card payments and manage transactions across multiple channels, serving merchants in industries such as hospitality, restaurants, and large-scale venues.
6. Klarna Group plc (NYSE:KLAR)
Number of Hedge Funds: 50
Median Upside: 56%
Klarna Group plc (NYSE:KLAR) is one of the best FinTech stocks to buy in 2026.
On December 11, Klarna announced it had signed a research partnership with Privy to explore and co-design wallet solutions to support a new generation of crypto products for Klarna users. The company framed the effort as an attempt to lower the friction that keeps crypto stuck in the “early adopter” lane, focusing on making it easier for everyday users to store, use, and transact with digital assets inside a familiar consumer product experience. Klarna also positioned the move as a follow-on to its recent stablecoin launch, KlarnaUSD, which it said was developed in partnership with Tempo and Bridge.
Described by Klarna as a leading wallet infrastructure platform, Privy, a Stripe-owned company, brings the pipes, not the hype. Klarna highlighted Privy’s scale, noting that it powers over 100 million accounts for more than 1,500 developers and helps users move billions in crypto and stablecoins each month. Klarna’s CEO Sebastian Siemiatkowski argued that Klarna’s existing consumer trust puts it in a strong position to make crypto feel “normal,” meaning as intuitive as other app features rather than a separate, specialist product. Importantly for investors, Klarna characterized the initiative as R&D and said any future launches would depend on securing required regulatory approvals and licenses where applicable.
Klarna Group plc (NYSE:KLAR) describes itself as a global digital bank and flexible payments provider, aiming to help consumers manage everyday spending and shopping through its app and merchant network.
5. Fidelity National Information Services, Inc. (NYSE:FIS)
Number of Hedge Funds: 57
Median Upside: 28.2%
Fidelity National Information Services, Inc. (NYSE:FIS) is one of the best FinTech stocks to buy in 2026.
As of December 16, Wall Street’s consensus view on FIS remains a Moderate Buy, with analysts tracked by MarketBeat assigning an average 12-month price target of about $85.4, implying roughly 28% upside from current trading levels. The price target range spans from roughly $70 on the low end up to about $113 on the high, reflecting some divergence among analysts but a generally bullish tilt overall.
On November 25, 2025, FIS announced it is powering BMW Bank GmbH’s digital transformation in Germany through a deposits-as-a-service capability aimed at accelerating deposit growth and supporting the bank’s deposits and lending ambitions. FIS said the bank went live in Q2 2025, with more than 300,000 deposit accounts transitioning onto the new tech. The solution leverages FIS K CORE24 for the German market and a refreshed FIS K e-Banking platform designed to deliver a modern, secure digital banking experience. FIS also highlighted security and utility features such as two-factor authentication and merchant-related functions that enable direct transaction processing between the bank and merchants. In other words, it is a core-plus digital upgrade designed to make deposits stickier and the front end less frustrating for humans.
Fidelity National Information Services, Inc. (NYSE:FIS) provides financial technology for banks, merchants, and capital markets firms, with platforms spanning core processing, digital banking, payments, and related services used to run and modernize money movement.
4. Affirm Holdings, Inc. (NASDAQ:AFRM)
Number of Hedge Fund Holders: 60
Median Upside: 31.8%
Affirm Holdings, Inc. (NASDAQ:AFRM) is one of the best FinTech stocks to buy in 2026.
On December 9, Wolfe Research initiated coverage of Affirm with a Peer Perform rating, arguing that while the company has multiple credible growth drivers, the stock’s valuation leaves limited room for near-term upside. The firm characterized Affirm’s business momentum as solid but said a more attractive entry point would be needed before adopting a more constructive stance on the shares.
Wolfe highlighted several areas that continue to support Affirm’s growth outlook. One of the most important is the expanding use of 0% APR installment loans, which have gained traction as merchants increasingly favor promotional financing over upfront discounts. By offering consumers flexible monthly payment options rather than cutting prices outright, merchants can preserve margins while improving conversion rates. This dynamic has helped Affirm broaden adoption of its interest-free monthly loan products.
The firm also pointed to continued development of the Affirm Card as another growth lever. The card enables consumers to extend Affirm’s pay-over-time functionality beyond checkout to everyday spending, increasing engagement and transaction frequency across the platform. In addition, Wolfe cited Affirm’s ongoing international expansion efforts, including its push into European markets, as a longer-term opportunity that could further diversify revenue streams.
Despite acknowledging these growth avenues, Wolfe maintained a cautious view on valuation. The firm initiated coverage with a price range of $72 to $82, signaling that much of the expected operational progress is already reflected in the stock. As a result, Wolfe concluded that while Affirm’s strategy and product set are compelling, upside from current levels appears constrained without a reset in valuation expectations.
Affirm Holdings, Inc. (NASDAQ:AFRM) operates a buy now, pay later platform that enables consumers to split purchases into installments while helping merchants increase conversion through flexible payment options, including promotional 0% APR plans and a growing consumer card offering.
3. Block, Inc. (NYSE:XYZ)
Number of Hedge Funds: 64
Median Upside: 30.3%
Block, Inc. (NYSE:SQ) is one of the best FinTech stocks to buy in 2026.
On December 4, UBS reiterated a Buy rating on Block and maintained its $90 price target following the company’s recent investor day and conference commentary. UBS said the event reinforced confidence in Block’s long-term profitable growth trajectory across both Square and Cash App, while highlighting improved clarity around the company’s medium-term financial framework.
During the investor day, management emphasized the increasing breadth of the business, noting that 26 revenue streams now each generate more than $100 million in gross profit, compared with just five such revenue streams in 2020. The company also outlined a longer-term roadmap extending beyond 2026, which UBS viewed as supportive of sustained operating leverage as Block continues to scale its ecosystem.
On December 8, 2025, TD Cowen reiterated its Buy rating on Block and again named the stock its “Best Idea for 2026,” pairing the call with a $91 price target. TD Cowen highlighted the company’s improving margin profile and the potential for continued operating leverage as growth normalizes across key products. The firm also pointed to management’s targets for roughly 30% three-year compound annual growth in earnings per share and cash flow, viewing those goals as achievable within the current strategic framework.
TD Cowen further argued that Block’s shares were trading at a meaningful discount to the company’s historical valuation within the broader fintech and payments sector, which it sees as creating an attractive entry point for long-term investors.
Looking beyond individual analyst notes, MarketBeat data shows Block carrying a Moderate Buy consensus rating as of mid-December, with an average 12-month price target in the low-to-mid $80s. That implies meaningful upside from recent trading levels, showing generally constructive expectations from Wall Street even as analysts weigh execution risks.
Block, Inc. (NYSE:SQ) builds technology to increase access to the global economy, operating platforms such as Square and Cash App that enable commerce, payments, and financial services for sellers and consumers worldwide.
2. Fiserv, Inc. (NASDAQ:FISV)
Number of Hedge Fund Holders: 83
Median Upside: 75.6%
Fiserv, Inc. (NASDAQ:FISV) is one of the best FinTech stocks to buy in 2026.
As of mid-December, MarketBeat data show Fiserv, Inc. (NASDAQ:FISV) carries a Hold consensus rating, with an average 12-month price target of $121, implying roughly 76% upside from recent trading levels. The spread of individual targets, from the low $60s to the $250s, indicates a mixed outlook on Wall Street, with some analysts cautious about near-term execution even as longer-term potential remains.
Alongside analyst optimism, the company is facing legal scrutiny tied to its technology and security practices. In December 2025, Payments Dive reported that Self-Help Credit Union filed a lawsuit against Fiserv in federal court in North Carolina. According to the report, the complaint alleges that Fiserv misrepresented certain aspects of its security protocols, including statements related to the use of two-factor authentication. The lawsuit is in its early stages, and the claims have not been adjudicated. As with many disputes involving enterprise software and financial infrastructure providers, the outcome remains uncertain and could take time to resolve.
Investor focus heading into 2026 is likely to center on whether Fiserv can sustain operational execution while navigating legal and reputational risks in a competitive payments landscape.
Fiserv, Inc. (NASDAQ:FISV) is a global payments and financial technology company that provides solutions across account processing and digital banking, card issuer processing and network services, payments, e-commerce, merchant acquiring, and the Clover point-of-sale platform.
1. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 96
Median Upside: 21.9%
Intuit Inc. (NASDAQ:INTU) is one of the best FinTech stocks to buy in 2026.
As of mid-December, MarketBeat data shows Intuit (NASDAQ:INTU) carries a Moderate Buy consensus rating. The average 12-month price target sits near $792, implying roughly ~22% upside from recent trading levels. This reflects continued confidence in Intuit’s growth trajectory, even as some analysts temper expectations on near-term execution.
On November 24, Intuit announced that its SMB MediaLabs audience segments are now available on The Trade Desk platform, giving advertisers access to Intuit’s first-party small and mid-market business audiences through The Trade Desk’s buying tools. The company framed this as an expansion of SMB MediaLabs, which it positions as an advertising network powered by its first-party business data, with advertisers expected to follow Intuit’s advertising guidelines and privacy-conscious standards.
The pitch is simple: small businesses are a huge market and Intuit reports that they account for 99% of companies in the U.S. But SMB decision-makers have historically been hard to target accurately with fragmented or outdated third-party data. Intuit says this integration changes that dynamic by letting advertisers use aggregated, de-identified insights from the Intuit platform to reach verified SMB decision-makers at scale, with the goal of improving campaign performance while keeping ads more relevant to SMB owners.
Intuit also noted that The Trade Desk is the latest DSP partner for SMB MediaLabs and the first DSP where this first-party SMB data will be discoverable for advertisers, paired with cross-channel measurement and campaign management. It added that the integration is available via SMB MediaLabs self-service as an endpoint on the LiveRamp Data Marketplace, thereby extending reach across connected TV, audio, display, and digital out-of-home.
Intuit Inc. (NASDAQ:INTU) is a global financial technology platform behind TurboTax, Credit Karma, QuickBooks, and Mailchimp, serving roughly 100 million customers worldwide with tools designed to help people and businesses prosper.
While we acknowledge the potential of INTU 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 INTU and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
