Over the last decade, FinTech (financial technology) has evolved from a niche area of the tech sector into an essential pillar of global finance. As everyday banking, payments, and investing have shifted online, the industry has experienced huge growth. 

For investors, the FinTech space can be an attractive destination for both strong long-term returns and portfolio diversification. With that in mind, here are seven top FinTech stocks worth considering for an ISA or SIPP. 

Visa

In the large-cap space, one of my top picks in the FinTech sector is Visa (V:NYSE). A titan of the financial industry, it operates one of the world’s largest global payment networks.

Every day, it processes billions of transactions globally on its network, taking a small slice of each transaction. The more people spend on their debit and credit cards, the more money it makes.

One thing I like about Visa is that it doesn’t actually issue debit or credit cards – it simply operates the payment networks. This means that it doesn’t face any credit risk. 

I also like the fact that it has a very wide moat. In this industry, there are massive barriers to entry – another company can’t suddenly come along and capture market share. 

Of course, new payments technologies like stablecoins are a risk. I think Visa should be able to adapt as the financial landscape evolves, however, as it is very active in emerging areas of payments and also has the financial resources to pivot towards new technologies. 

It’s worth pointing out that Visa shares have had a decent run recently. Given this run, it might be worth waiting for a pullback before taking a position in this FinTech powerhouse.  

Mastercard

Another large-cap FinTech stock I’m a fan of is Mastercard (MA:NYSE). It’s similar to Visa in that it’s a major payments network operator.

It’s a little more global in nature, however (Visa is quite US focused). It’s also more profitable – over the last five years it has generated an average return on capital employed (ROCE) of 52% versus 31% for Visa. 

This company has a brilliant growth track record. Last year, revenue hit $32.8 billion, up from $15.3 billion five years earlier. 

This year, the company is expected to generate revenue of $37.3 billion. That would represent growth of 14% year on year which isn’t bad at all for a large-cap company. 

Now, like Visa, Mastercard had a good run recently. So, it could be worth waiting for a pullback before taking a position.

At present, the P/E ratio here is about 31. I reckon with a little bit of patience, the stock will be available at a cheaper multiple than that. 

Wise 

Those looking for value in the FinTech space may want to check out Wise (WISE:LON). It’s a global leader in low-cost, fast international payments. 

At present, it’s trading on a P/E ratio of just 17.6. At that multiple, I reckon the stock is an absolute steal. 

Wise has grown at a very impressive rate over the last five years (5-year revenue growth of 355%) and analysts expect the strong growth to continue. This financial year and next, revenue is expected to grow 26% and 18% respectively. 

One source of growth is likely to be its business-to-business (B2B) platform, which offers international payments solutions for banks and other financial businesses. Growth could also come from cross-selling products like multi-currency accounts, index funds, and interest accounts to regular customers.  

Now, there are some risks around regulatory fines here – recently Wise has been the focus of European money laundering investigations. I reckon this is factored in at the current share price though. 

Note that the average analyst price target is 1,258p. That’s about 54% above the current share price. 

London Stock Exchange Group 

Another FinTech stock that offers value at the moment is London Stock Exchange Group (LSEG:LON). It’s one of the world’s leading financial data providers.

At present, it can be snapped up on a P/E ratio of 16.7. That’s a bargain for this blue-chip financial technology company, in my view. 

What I like about this company is that it serves an institutional customer base. Institutions typically embed data solutions into their workflows resulting in high levels of recurring revenues for data providers. 

I also like the fact that it is embracing AI. Recently, LSEG has made its data available to licensed customers through a wide range of foundational models and cloud environments, including Anthropic, Microsoft, OpenAI, Databricks, and Snowflake. 

It’s worth noting that earlier this month, the company raised its guidance for 2026. It now expects total income to grow 8% this year versus previous guidance of 7% to 7.5%. 

The average analyst price target here is 11,794p. That’s almost 30% above the current share price. 

Robinhood Markets 

In the brokerage space, I’m bullish on Robinhood Markets (HOOD:NASDAQ). One of the most innovative companies in the trading and investment space, it’s growing at a rapid clip at present.  

This company has really broadened its offering in recent years. Today, it offers commission-free stock trading, crypto trading, prediction markets, options and futures trading, a platform for advanced traders, AI-powered stock analysis, social trading, private markets access, a credit card, wealth management and retirement investing services, and more. 

Given this extensive list of services, the platform is incredibly popular, especially with younger investors. As of Q3, Robinhood had almost 29 million funded accounts globally. 

This year, the company’s revenue is expected to hit $5.3 billion. That would represent growth of around 185% from the figure for 2023. 

The P/E ratio here is currently 32. So, the stock is a little bit expensive. 

I think the company will grow into that valuation, however. It’s worth noting that the average price target is $130 – more than 30% above the current share price. 

CMC Markets 

Another brokerage firm that could be worth a look is CMC Markets (CMCX:LON). It’s a smaller player in the market that is growing very quickly. 

Right now, it’s having a lot of success with B2B operations. Recently, it has done white-label deals with banks, brokers, and other financial institutions.

This stock looks very cheap at the moment. Currently, it’s trading on a P/E ratio of just 11. 

Note that earlier this month, CEO Lord Cruddas purchased CMC shares himself. I see this insider buying activity as a bullish signal.  

Toast

Finally, for something different, check out Toast (TOST:NYSE). It offers an all-in-one digital technology platform for the restaurant community. 

Its ecosystem includes front-of-house hardware, point-of-sale devices, digital ordering systems, payroll and team management software, integrated payment processing, and more. The beauty of its business model is that it’s very sticky – once a restaurant embeds its solutions, the cost of switching to another provider is high. 

This company has grown at a rapid clip in recent years (3-year revenue growth of 125%) as restaurants have moved to get up to speed digitally, and analysts expect the growth to continue. This year, revenue is expected to rise to $7.5 billion, from $6.2 billion last year.

Now, the valuation here looks high at first glance – the P/E ratio is 33. Given Toast’s growth and competitive advantages, however, I think it’s reasonable. 

Edward Sheldon has positions in Visa, Mastercard, Wise, London Stock Exchange Group, and Robinhood Markets.