Small-Cap Fintech Stocks to Watch Amid the Rise of Digital Payments

fintech stocks

The recent launch of Apple Inc.’s (NASDAQ:AAPL) first proprietary credit card, Apple Card, has turned the spotlight towards the growing digital payment and mobile wallet industry. But Apple may be late to the game, as there are already a handful of well-established small-cap fintech stocks leading this emerging industry.

The Goldman Sachs-backed Apple Card is the company’s first move into the credit card industry, and experts have already pointed out some major issues with it. First, the Apple Card lives within the iPhone Wallet App, meaning if you lose your iPhone, you won’t be able to pay your Apple Card bills. What’s more, Apple didn’t make a traditional web portal for customers to pay off their credit card bill, so unless you use an iPhone, this card isn’t available to you.

Naturally, investors get excited when they hear about the next big thing in technology from a prominent household name, but the following small-cap fintech stocks may offer both investors and consumers more upside than the Apple Card ever will.

Small-Cap FinTech Stocks Creating Digital Wallets

One of the small-cap fintech stocks offering online banking, prepaid debit cards, and a secured platinum Visa is Green Dot Corp. (NYSE:GDOT). The company was established in 1999 and is the largest prepaid debit card company in the world by market cap.

Green Dot just announced the launch of the Unlimited Cash Back Bank Account, which offers customers a 3% savings rate on a high-yield savings account as well as a high return on spending. However, the company’s share price took a significant 41.9% tumble earlier this month after its second-quarter financial results revealed a weaker outlook and fewer active users.

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Another force to be reckoned with in the digital wallets space is LiteLink Technologies (CSE:LLT) (OTCPK:LLNKF), a key player in logistics platforms and payment solutions. In June, the company announced the closed beta launch of its uBUCK Pay App, a digital wallet and payments platform that serves as a payment alternative for both merchants and consumers.

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LiteLink signed a number of strategic partnerships to strengthen the offerings of its uBUCK Pay App, which include a loyalty and rewards program, virtual ATM capabilities, record-breaking transaction speeds, and, perhaps the most enticing, no transfer fees. uBUCK Pay allows users to make online payments and purchases, send money to others, and withdraw cash at the ATM.

The company built uBUCK Pay to provide a cost-effective option to individuals sending money overseas and serve the unbanked and underbanked communities of the world. LiteLink also created the uBUCK Black Elite Debit Card to allow its customers to shop anywhere debit is accepted as well as track their purchases.

Small-Cap FinTech Stocks Supporting Merchants

Ackroo Inc. (TSXV:AKR) (OTCPK:AKRFF), a loyalty marketing and gift card technology provider, is a small-cap fintech stock that is focused on helping merchants attract, engage, and grow their customer base by helping them process loyalty, gift card, and promotional transactions at the point of sale.

The company just launched a payment services product called AckrooPAY, which offers in-store and online debit and credit transaction processing.

Another one of the merchant-focused small-cap fintech stocks creating a buzz in the digital payments space is Mobi724 Global Solutions Inc (TSXV:MOS) (OTCPK:MOBIF). The company offers a suite of card-link, customer engagement & retention, and payments solutions that work at any point of sale (POS) and on any payment card.

Mobi724’s solutions allow users to create, manage, deliver, track, and measure incentive campaigns across the globe.

Are there any small-cap fintech stocks on your radar that we missed? Let us know in the comments!

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Featured Image: DepositPhotos © baranq