The fintech market in Canada has grown at a rapid pace over the past few years. Here are 10 fintech stocks on Canadian exchanges.
Canada’s financial technology landscape is growing, as are partnerships between Canadian banks and Canadian fintech stocks.
Canada’s fintech industry includes more than 700 companies, according to Accenture’s 2021 report on Canadian fintech, 60 percent of which are found in Toronto, Ontario. The cities of Vancouver, British Columbia, and Montreal, Quebec, have also become major financial technology hubs.
The report identifies three verticals with the most promise for growth in the Canadian fintech ecosystem: RegTech (risk and compliance management), WealthTech and personal financial management tools.
In addition to data supporting the maturation and growth of the fintech sector, information from Statista shows that the leading fintech industry in Canada is the digital payments sector. The transaction value of digital payments is projected to reach more than US$82 million in 2021.
According to a report from the Bank of Canada, fintech has the ability to improve efficiencies in the financial services sector, while also exposing additional vulnerabilities.
As adoption increases, large financial institutions are integrating fintech into their business models. In 2019, RBC (TSX:RY,NYSE:RY) acquired WayPay to improve its accounts payables processes, and TD Bank (TSX:TD,NYSE:TD) partnered with the fintech firm Amount to expand its digital lending platform.
Following a successful pilot project, BMO (TSX:BMO,NYSE:BMO) partnered with Toronto-based startup Riskfuel Analytics “to help clients make faster, better investment decisions” by leveraging deep learning and fast neural nets to develop pricing models and analyze structured derivatives transactions.
With that in mind, here are 10 Canadian fintech stocks on the TSX and TSXV for investors looking to jump into this growing sector. The Canadian fintech stocks listed below have market caps between C$10 million and C$500 million and were selected using TradingView’s stock screener. All numbers and figures were current as of market close on September 15, 2021.
1. Payfare (TSX:PAY)
Market cap: C$468.29 million; current share price: C$10.29
The first Canadian fintech stock on this list is Payfare, a global financial technology company offering mobile banking and instant payment solutions for today’s gig workforce. Some of its customers include Uber (NYSE:UBER), Lyft (NASDAQ:LYFT) and DoorDash (NYSE:DASH).
Since its initial public offering in March 2021, Payfare’s share value had nearly doubled as of mid-September. At the end of Q2, its total active user count was 262,567, representing an increase of 79 percent over Q1. That figure, along with revenues, is expected to increase as the gig economy continues to grow.
2. Mogo Finance Technology (TSX:MOGO)
Market cap: C$408.88 million; current share price: C$5.81
Mogo Finance Technology helps its customers get control of their finances. Users can sign up for a Mogo account to access free credit score monitoring, as well as prepaid Visa (NYSE:V) cards and personal loans.
Mogo recently reported that its member base increased by approximately 63 percent, rising from 1,040,000 to 1,695,000 members from June 30, 2020 to June 30, 2021; its MogoCard transaction volume was up over 1,660 percent year-over-year.
3. Points International (TSX:PTS)
Market cap: C$323.6 million; current share price: C$21.66
Points International is an ecommerce rewards program that connects consumers with retailers, loyalty partners and product partners. Customer engagement is driven by providing loyalty rewards through various transactions. For example, the company offers wallet rewards that are extended to client companies’ existing platforms, on which users are linked with a number of currencies that offer rewards.
4. Goldmoney (TSX:XAU)
Market cap: C$202.56 million; current share price: C$2.67
Goldmoney is a slightly different fintech company in that its mission is to make gold and precious metals accessible to anyone. Its holding features allow users to buy, sell and hold physical gold, silver, platinum and palladium bullion online, as well as spend or withdraw cash directly from the company’s Goldmoney Holding with a prepaid Goldmoney Mastercard (NYSE:MA). Reserves can be held or exchanged in nine currencies without having to pay foreign exchange fees.
The Goldmoney Holding is a custodial account with allocated, segregated and physically redeemable bullion, and it has low risks and costs.
Market cap: C$135.95 million; current share price: C$3.04
Banxa Holdings is a crypto payment service provider offering a solution to the gap between traditional financial systems, regulation and digital currency platforms.
The company is led by a team of legal, tech and crypto experts, and is partnered with almost 100 crypto exchanges, each of which has a pre-existing user base of up to 50,000 users.
6. DelphX Capital Markets (TSXV:DELX)
Market cap: C$74.73 million; current share price: C$0.69
Through its credit risk technology, DelphX Capital Markets provides market liquidity by applying actuarial data and risk diffusing technology. Its platform allows its clients to engage in speculative opportunities through risk-hedging options such as covered put options and covered reference notes.
7. AnalytixInsight (TSXV:ALY)
Market cap: C$69.84 million; current share price: C$0.73
AnalytixInsight applies its machine-learning technology across a number of ventures. Its fintech project Capital Cube is a platform that applies artificial intelligence to analyze over 50,000 securities. Capital Cube provides fundamental research tools, plus stock screeners for company insight and analytics.
In addition, Canadian fintech stock AnalytixInsight has a 49 percent stake in fintech company MarketWall, which is jointly owned with Intesa Sanpaolo (BIT:ISP,OTC Pink:IITSF). Based in Italy, MarketWall provides quotes and research for securities trading.
8. Axis Auto Finance (TSXV:AXIS)
Market cap: C$51.51 million; current share price: C$0.53
Axis Auto Finance is a fintech lender providing alternative used vehicle financing options for Canadians, servicing those that have credit scores in the non-prime range (estimated at 30 percent of the adult population). The company claims that all of its auto loans report to the credit bureau, resulting in a significant improvement of the credit scores for the majority of its clients.
Axis’ lender platform is based on state-of-the-art, in-house developed risk analytics. In mid-2021, the company announced it had added a “Big 5” Canadian bank to the funding syndicate that provides the company’s senior secured debt facility.
Market cap: C$49.05 million; current share price: C$0.28
RevoluGROUP Canada is a central bank-licensed neobank fintech company focused on meeting the demands of the rapidly growing personal and corporate finance industry, along with other technology market sectors, through its flagship RevoluPAY technology.
RevoluPAY, the company’s proprietary iOS and Android banking app, launched in 2018, and linked to a proprietary Visa card in 2020. The app offers accounts in Canadian dollars, US dollars and euros, with more currencies planned. RevoluGROUP has secured direct correspondent banking agreements with BBVA USA, Flutterwave, Alipay, Union Pay, Thunes and others. The company has a 27 EU country PSD2 banking license and the requisite Canadian FINTRAC license homologation.
10. NamSys (TSXV:CTZ)
Market cap: C$30.01 million; current share price: C$1.10
NamSys is in the business of developing and producing currency inventory management and control systems for financial institutions, retailers, currency carriers, and casino and transit operators, as well as a number of government agencies.
This Canadian fintech stock’s Currency Controller is a cash vault management and logistics system that manages a range of cash processing for banks and cash-in-transit providers; its Cirreon platform includes bank integration, reconciliation and multi-vendor support.
This is an updated version of an article first published by the Investing News Network in 2017.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Banxa Holdings and RevoluGROUP Canada are clients of the Investing News Network. This article is not paid-for content.