The crypto market has damaged a lot of investors in recent months as rising interest rates caused them to flee from dangerous alternatives. Bitcoin’s value has decreased by about 70% since its all-time high last Nov., with the majority of smaller altcoins suffering dramatic losses.
The cryptocurrency crash may provide an opportunity for investors that can handle the volatility, but most people should probably stay away from that sector and focus on more diversified fintech plays. So right now, I will look at two promising fintech stocks in greater detail: Adyen and MercadoLibre, and why they might be superior alternatives to most cryptocurrencies.
Adyen is a Dutch software firm that offers an end-to-end platform for financial management services, processing payments, and data analytics. With only a few lines of code, it may be integrated into current mobile, online, and in-store payment systems.
There are over 250 different payment options that merchants can now accept thanks to these flexible integrations. Instead of developing separate consumer-facing apps like PayPal or Block’s Cash App, Adyen’s back-end technology enables businesses to generate their own mobile wallets and payment cards. Adyen does not offer any crypto trading services, physical debit cards or stock trading tools.
Adyen is a relatively unknown payment processing firm that works in the background. However, it’s exploding like weeds. In 2021, its revenue and adjusted EBITDA both rose by 46% and 57%, respectively, as it outran an uncommon decline during the pandemic in 2020.
MercadoLibre is Latin America’s most well-known e-commerce firm. However, Mercado Pago, the company’s PayPal-like payments platform that connects merchants, customers, and offsite organizations to its ecosystem, makes it the area’s top fintech business as well.
It also has a credit-based payment system (Mercado Crédito), online ins. policies, financial services, and cryptocurrency trading instruments. It had 35.8 million consumers at the end of the first quarter of 2022, up 31% from a year ago, and 20.2 million mobile wallet customers, and almost 23 million investment accounts in its ecosystem.
The stock price of MercadoLibre appears to be fairly valued at 35 times this year’s anticipated adjusted EBITDA, and it may still have a lot of room to grow as e-commerce penetration rates and income levels increase throughout Latin America.