Increasing digitization, increasing online consumer behavior and the still untapped potential of electronic payments are creating room for growth. But this playing field is not dominated primarily by established banks, but by a handful of Fintechs. Upcoming companies were able to prove this not only with their considerable growth, but also with their share price performance – which outshines those of many banks. Two large and already established players stand out, as do two that focus on consolidation and economies of scale:
Paypal: With more than 246 million users worldwide, Paypal is the largest of the companies and can look back on considerable growth. Since its IPO in 2015, the company has increased its market capitalization by around 240%. And the potential has not yet been exhausted.
Wirecard: Although the current year was rather turbulent for Wirecard, the company can also look back on a respectable growth in the last three years: around 280%. The resulting increase in market capitalization led Wirecard to force Commerzbank out of the DAX® in fall of the last year. Many analysts still see potential in the share and give it a buy rating.
FIS : The more than 50,000 employees in over 130 countries and a turnover of 8.4 billion US dollars are not enough. At least for the American financial services provider FIS. In order to strengthen its own position, the company intends to take over the British payment processor Worldpay and exploit economies of scale.
Fiserv: Fiserv also relies on the advantages that a certain size of the group brings with it. By purchasing Firstdata, the company intends to leverage economies of scale and increase cost efficiency. Fiserv also has a buy rating from numerous analysts. (Source: VT)