Canada's fintech market has grown at a rapid pace over the past few years. Here are 10 fintech stocks listed on Canadian exchanges.
Canada’s fintech landscape is growing, as are partnerships between Canadian banks and Canadian fintech stocks.
Canada’s fintech industry includes more than 700 companies, according to a 2021 report on the Canadian fintech market from Accenture, an IT services and consulting firm. Sixty percent of these companies are found in Toronto, Ontario, but the cities of Vancouver, BC, and Montreal, Quebec, have also become major financial technology hubs in the nation.
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.
Meanwhile, data from Statista shows that right now the leading fintech industry in Canada is the digital payments sector. The transaction value of digital payments is projected to reach more than US$119.8 million in 2022.
As fintech adoption increases, large financial institutions are integrating fintech into their business models.
For example, in 2019, RBC (TSX:RY,NYSE:RY) acquired WayPay to improve its accounts payables processes; that same year, TD Bank (TSX:TD,NYSE:TD) partnered with fintech firm Amount to expand its digital lending platform.
In 2021, the National Bank of Canada (TSX:NA) invested C$103 million in Montreal-based fintech firm Flinks, which helps deliver digital financial products to consumers in North America. For its part, BMO (TSX:BMO,NYSE:BMO) partnered with Toronto-based startup Riskfuel Analytics following a successful pilot project “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, TSXV and CSE 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 28, 2022.
Market cap: C$240.28 million; current share price: C$7
Propel Holdings operates through its brands MoneyKey and CreditFresh, providing an online lending platform that offers access to credit products such as installment loans and lines of credit to consumers who can’t get credit from mainstream providers.
Propel says its “revenue growth and profitability have accelerated significantly over the past two years.” As an example, the company recently reported that its Q2 2022 revenue increased by 90 percent year-on-year to US$54.1 million, representing a new quarterly record. Propel paid a dividend of C$0.095 per share in June 2022.
Market cap: C$235.88 million; current share price: C$5.20
Next up 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).
Payfare made its initial public offering in March 2021, and has grown alongside the expanding gig economy. The company reported Q2 2022 revenue of C$33.6 million, which was a 285 percent increase over Q2 2021, and a 35 percent increase over Q1 2022.
"The second quarter was a significant financial milestone for Payfare as we achieved positive Adjusted EBITDA for the first time," said CEO and founding partner Marco Margiotta. "We remain focused on growth and are able to deploy capital opportunistically including remaining active on buying back our shares, funding the launch of new products, and other strategic growth opportunities."
Market cap: C$136.32 million; current share price: C$5.75
Third on this list of Canadian fintech stocks is Sylogist, a software-as-a-solution provider for the public sector and nonprofits. The company offers enterprise resource planning, constituent relationship management, fundraising, education administration and payment solutions to customers across Canada, the US, the UK and internationally.
Sylogist has nearly 2,000 customers spanning all levels of government, as well as non-profit and non-governmental organizations, educational institutions and public compliance-driven and funded companies.
The company’s unaudited financial results for Q3 of its 2022 fiscal year were released in August. Highlights include record revenue of C$13.7 million, an increase of 44 percent over the same period in Sylogist's previous fiscal year.
Market cap: C$133.09 million; current share price: C$1.22
Tenet Fintech Group is the parent company of a group of fintech and artificial intelligence companies offering services to businesses and financial institutions through the Cubeler Business Hub, a global ecosystem used to create opportunities and facilitate business-to-business transactions. Tenet is working toward the official launch of its Cubeler Business Hub in Canada, slated for November 2022. In mid-September, the company announced that over 1,100 small- and medium-sized enterprises had pre-registered for the hub.
"Considering that 1,100 pre-registrations was our objective going into the campaign, and that we have now exceeded that number with over two months to go before the November launch, we may end up with double or even triple the number of our pre-registration target by the time of the launch,” commented Luc Godard, vice president of marketing at Cubeler. “We are also very excited by the fact that the pre-registrations come from businesses from coast to coast and cover a wide range of industries, including everything from retail to technology companies and everything in between.”
Market cap: C$116.04 million; current share price: C$1.60
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.
Goldmoney Holding is a custodial account with allocated, segregated and physically redeemable bullion, and it has low risks and costs.
Market cap: C$98.24 million; current share price: C$0.83
Financial technology company POSaBIT provides point-of-sale (PoS) solutions for cash-only industries, especially cannabis retailers. The company’s cutting-edge software and technology allows for safe and compliant PoS and payment infrastructure for merchants.
POSaBIT is continually expanding its business, and launched its services in four new US states in 2022. Most recently, the company entered the recreational cannabis market in Illinois. The company is now active in 20 US states.
Market cap: C$91.9 million; current share price: C$1.25
Mogo aims to help 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 18 percent year-over-year, surpassing the 2 million milestone in Q2 2022. The company also reported revenue of C$17.3 million for the same quarter, up 27 percent year-over-year.
Market cap: C$79.44 million; current share price: C$0.405
WonderFi Technologies says its focus is “building the future of finance” by providing wider access to regulated crypto platforms.
Beginning in the first quarter of 2023, the company will offer stock trading for its customers through its crypto trading platform, Bitbuy. “Bitbuy will offer fractional trading and investments in thousands of U.S. stocks, exchange-listed securities and ETFs,” states a press release. Once launched, the product will be the first fractional trading platform in Canada that offers real-time settlement.
Market cap: C$63.92 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. The company's revenue for its 2022 fiscal year totaled a record C$40.2 million, up 5 percent over the previous year.
Market cap: C$38.32 million; current share price: C$0.205
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 was 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.
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.