Fintech’s Future: Two Stocks for the Long Haul

The world of finance, as anyone who’s ever balanced a checkbook (or, let’s be honest, squinted at an online statement) knows, is in a constant state of upheaval. And right now, it’s being reshaped by something called “fintech”—a portmanteau, naturally, because the financial world loves a good bit of linguistic efficiency. It basically means ‘financial technology,’ which, when you think about it, is rather like describing a bicycle as a ‘wheeled transportation device.’ Anyway, it’s projected to expand rapidly over the next decade, which is good news for those of us who like numbers to go up. So, let’s consider two companies that seem reasonably well-positioned to benefit: Adyen and PayPal. Not glamorous names, perhaps, but then again, most things that actually work aren’t.

1. Adyen

Adyen, for the uninitiated, is a payment platform. Now, you might think, “Another payment platform? Good heavens, how many do we need?” And it’s a fair question. But Adyen does something rather clever: it simplifies the whole messy business of accepting payments for companies that operate in multiple countries. Imagine running a global coffee chain. You need to accept credit cards, debit cards, mobile payments, and whatever exotic payment method is popular in, say, Uzbekistan. Without Adyen, you’d need a separate contract with a payment processor in each country, a logistical nightmare. Adyen consolidates it all into one platform. They serve giants like Etsy, Spotify, and even McDonald’s – a company that, if you think about it, has mastered the art of accepting money for decades, so their choice of payment partner is something of a commendation.

Now, Adyen hasn’t exactly been setting the stock market ablaze recently. It’s been…steady. Which, in the current climate, is almost a radical act. There are a couple of reasons for this. Firstly, they had a bit of a pandemic-induced boost. Everyone was shopping online, and Adyen processed a lot of payments. Inevitably, that pace couldn’t be maintained. Secondly, and this is where it gets interesting, they decided to invest in growth, even when others were cutting back. A perfectly sensible strategy, you might think. But it did dent their margins for a while. It’s a bit like deciding to renovate your kitchen while simultaneously taking a round-the-world cruise – admirable in its ambition, perhaps a little financially precarious.

Happily, they seem to be addressing that. In the first half of 2025, revenue increased by 20% to 1.1 billion euros (roughly $1.3 billion, give or take a few exchange rate fluctuations), and their EBITDA margin crept up to 50%. A healthy sign. They’re also expanding into the US market, which is always a bit like entering a different planet, and focusing on larger retail clients. Adyen may not have been a roaring success story lately, but it’s a fundamentally solid company, well-positioned to capitalize on the ongoing fintech boom.

2. PayPal

PayPal. A name that, for many of us, is synonymous with online payments. It’s been around for ages, and has, shall we say, seen a thing or two. Recently, though, it’s been a bit…under the weather. Growth has slowed, and user numbers haven’t been soaring. But before you write it off, consider this: even with modest user growth, PayPal still processes a staggering $458.1 billion in payment volume each quarter. That’s a lot of money changing hands. And they have 438 million active accounts. A sizable customer base, to say the least.

This vast customer base gives them a unique opportunity: advertising. They’re venturing into the digital advertising sector, leveraging the wealth of transaction and consumer data they possess. It’s a bit like a shopkeeper realizing they know exactly what everyone is buying and then deciding to sell advertising space to the suppliers. Makes perfect sense, really. They’ve launched initiatives like PayPal Ads Manager and a platform to provide companies with deep insights into consumer purchasing decisions. If it works, it could generate significant revenue.

But perhaps the biggest advantage PayPal has is its brand recognition and trust. It’s been a pioneer in online payment processing, and its name is closely associated with the industry. In a world where fintech is becoming increasingly complex, that trust is invaluable. As digital wallets become more popular, PayPal is likely to be one of the companies that benefits. It’s not a flashy company, perhaps, but it’s a solid one, well-positioned to ride the fintech wave for years to come. And in the long run, that’s what matters most.

2026-01-20 12:53

1. Adyen

2. PayPal

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