Visa Inc. (NYSE:V) has emerged as a top choice for hedge funds, with 166 funds investing in the company. The digital payments industry, driven by the boom of the internet and smartphones, has seen significant growth, with the Nasdaq CTA Global Digital Payments Index increasing by 46% since October 2023. Visa and Mastercard, two key players in the industry, are leveraging artificial intelligence (AI) to enhance security and introduce upgrades to payment cards. However, they also face challenges, including legislative proposals in the UK regarding information sharing and merchant fee increases. Despite these challenges, the digital payments industry continues to adapt to new technologies and regulatory changes, with the potential for rapid user growth. TCI Fund Management holds the largest stake in Visa, worth $4.6 billion [0fd559fa] [472c1eb3].
InvestorPlace has identified three innovative fintech stocks to watch in 2024: Visa (V), Nu Holdings (NU), and SoFi Technologies (SOFI) [1a017bda].
Visa, with its global payment network and strong cash flow, is considered an income stock pick. The company's ability to adapt to new technologies and regulatory changes positions it well for future growth.
Nu Holdings has experienced a massive net loss reversal and has achieved significant market penetration in Latin America. This growth potential makes it an attractive investment option in the fintech sector.
SoFi Technologies, which recently achieved GAAP profitability, expects to see 20% annual revenue growth. With rate cuts expected, now is a good time to consider investing in this fintech stock.
Overall, the digital payments industry and fintech sector are experiencing significant growth and innovation. Investors are keeping a close eye on Visa, Nu Holdings, and SoFi Technologies as top stocks to watch in 2024 [1a017bda].