The COVID-19 pandemic has, undoubtedly, tossed our lives upside down, changing the way we do business and conduct transactions. With cashless transactions gaining traction, COVID-19 proved to be a disrupting event and Fintech sector started seeing a boom.
In Australia as well, the fintech sector seems to have picked up well, with more than 800 fintech companies currently scattered around the country.
The sector had an estimated worth of AU$4 billion in 2020, up from a mere AU$250 million five years earlier. Counted as one of the global fintech leaders, Australia’s many top players have expanded across the geographies or plan to do so.
Imagine this: in 2020 alone, 100 new fintech companies made their debut in Australia. Almost one-fifth of the country’s population, that is, 3.7 million Australians now use digital wallets. Almost one-third of the population has connected their debit or credit cards to their smartphones or watches.
This has positioned Australia’s Fintech stocks for further growth going forth.
Here are the top five fintech stocks in Australia right now:
- Afterpay (ASX:APT): The company is the most valued Australian fintech company – with a market capitalisation of AU$34.5 billion. The fintech behemoth has almost cornered the buy now, pay later (BNPL) space – an arrangement that allows consumers to buy diverse items using various payment plans, and receive their purchases right away. With stress persistent at the micro level, the BNPL trend is unlikely to fade away soon. Hence, Afterpay would continue to cash in on the BNPL wave.
- Xero (ASX:XRO): It is the second largest Australian fintech company – valued at AU$20.43 billion. The company is a cloud-based accounting software platform, which caters to the small- and mid-sized businesses. As small businesses emerge out of the COVID-19 crisis, analysts expect windfall benefits for Xero.
- Iress (ASX:IRE): Perched at the third place, Iress is valued at AU$2.51 billion – one-tenth of Xero’s valuation. The Melbourne-headquartered tech company specialises in software for the financial services industry, with more than 500,000 users globally. The company has over 9,000 business clients and has offices in diverse locations worldwide.
- Pushpay Holdings (ASX:PPH): Pushpay Holdings is valued at AU$1.83 billion. The company has developed donor and church management system. Catering to non-profit organisations and education providers, the company provides donor tools, finance tools and a custom community app for the faith sector across the geographies – the US, Canada, Australia and New Zealand.
- Bravura Solutions (ASX:BVS): With a market cap of at AU$858.34, it is the only company on the top five list to be valued at less than AU$1billion. The company is a developer of tech solutions for leading financial institutions. Since its listing, it acquired peer companies like Fino Comp and Midwinter.