It’s not uncommon to hear that fintech is the field of the future, and the amount of money that’s been invested in the sector over the last several years is indeed significant–no matter which way you look at it.
While global fintech investments dropped from $46.7 billion in 2015 to $24.7 billion in 2016–according to KPMG–that decrease certainly shouldn’t dissuade investors from the amount of opportunities that are to be had in this sector. In fact, over the next three years or so, the global market is poised to grow at at compound annual growth rate (CAGR) of 54.83 percent, as noted by WiseGuyReports.
Although the obvious choice may be turning to big name companies in the space, like TD Ameritrade Holding (NASDAQ:AMTD) or Vantiv (NYSE:VNTV), here the Investing News Network (INN) profiles cloud fintech stocks on the TSXV. The companies below all have market caps of less than $300 million and are listed in alphabetical order.
Cortex Business Solutions (TSXV:CBX)
Market cap: $33.36 million; current share price: $3.70
First on our cloud fintech stocks list is Cortex, a company that provides eProcurement solutions to improve efficiency, decrease costs and streamline procurement and supply chain processes. As of June 6, the company will have been on the TSX Venture Exchange for 10 years. Through the Cortex Trading Partner Network, the company enhances the exchange of business-critical documents to improve cash flow management and business controls, while at the same time reducing administrative costs.
Furthermore, Cortex’s Procure-to-Pay (P2P) solutions zero in on the unique needs of the buying organization. These solutions offer an electronic connection between the buyer and suppliers through e-Invoice Basic, e-Invoice Pro, e-Invoice Enterprise and P2P Integration.
Market cap: $19.66 million; current share price: $0.70
Formerly Cencotech, NamSys is in the business of developing and producing currency inventory management and control systems for a range of industries, including retailers, currency carriers, casino and transit operators, as well as government agencies. In particular, NamSys’ product, Currency Controller, is made to help manage cash processing for banks and cash-in-transit providers.
What’s more, its software-as-a-service (SaaS) product, Cirreon, includes bank integration, reconciliation, multi-vendor support, and even remote management and transactions.
OneSoft Solutions (TSXV:OSS)
Market cap: $19.01 million; current share price: $0.245
Our next cloud fintech stocks company is OneSoft Solutions, whose OneCloudCo (OCC) solutions provides financial software solutions on a subscription-only basis for non-profit organizations whose servers are located remotely from its customers. That said, the company is not primarily focused in fintech; its other services include software solutions by using Microsoft’s (NASDAQ:MSFT) cloud technologies.
TIO Networks (TSXV:TNC)
Market cap: $295.75 million; current share price: $3.32
TIO’s inclusion on this cloud fintech stocks list is a no brainer. TIO has also historically ranked on the highly respected TSX Venture 50 list. The annual list ranks the exchange’s strongest performers across five sectors. Companies are chosen based on three equally weighted criteria: market cap growth, share price appreciation and trading volume.
The IT company specializes in processing bill payment transactions through a secure, internet-enabled platform. That means the company operates as a cloud-based, multi-channel bill payment processor serving North American telecom, wireless, cable and utility network operators.
In February 2017, it was announced that PayPal (NASDAQ:PYPL) would be acquiring TIO Networks in a $304 million deal. As of April 2017, the company received a court-approved plan of arrangement from the Supreme Curt of British Columbia whereby PayPal will indirectly acquire all of the issued and outstanding shares of TIO. The deal is expected to be completed in the second half of 2017.
Market cap: $44.65 million; current share price: $1.40
VersaPay rounds out this list of the top players in Canadian fintech. The Toronto-based company is a leading provider of cloud-based invoicing, accounts receivable management and payment solutions. Through VersaPay Solutions, VersaPay focuses on accounts receivable management and payments with ARC, a software solution designed for mid-sized businesses. This section of the business also offers business and consumer customers a cloud-based credit card and electronic funds transfer service.
This article is an updated version of an article originally published in 2016.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.