The Canadian FinTech stocks on our list have rallied as much 225%+ YTD and are rapidly changing the landscape of payment processing and consumer-facing financial services
SmallCapPower | February 27, 2017: FinTech—where technology meets financial services—is a booming sector in Canada as financial services companies plan cost-cutting initiatives. FinTech provides alternatives for everything from payment processing to consumer-facing financial services. Today, we have identified five Canadian FinTech stocks poised to benefit from this growing market.
First Global Data Ltd. (TSXV: FGD) – $0.88
Investment Holding Companies
First Global Data Limited is a technology company that operates in the payments sector. The Company’s principal activity includes financial technology and remittance of services from Canada and the United States. Its services include consumer-to-consumer money transfer, which are provided under First Global Money brand and Mobile Payments, which are provided under PayQwik brand. Its technology platform stores information provided by various regulatory bodies on suspected money launderers and terrorist financiers. It also provides dynamic foreign exchange (FX) services, whereby the system gathers FE from multiple providers, and presents customers with a rate they would receive when sending monies from one currency to another.
- Market Cap: $156 million
- Revenue (LTM): $5 million
- Debt (FQ0): $12.58 million
- YTD Price Change: +225.9%
GoldMoney Inc. (TSX: XAU) – $3.40
GoldMoney Inc., formerly BitGold Inc., is a financial technology company that operates a global, full-reserve and gold-based financial services group. It provides financial services as a limited third-party, combining the attributes of gold with technology. It operates through two segments: GoldMoney and BitGold. Through BitGold, it operates a self-directed gold savings platform and a gold payments network allowing individuals and businesses to make purchases or sales of gold, receive online payments, or transact with online merchants. Through GoldMoney Wealth, it offers precious metals custody and wealth services, trading and execution, card services, tax free retirement accounts and independent research to high net worth individual investors and institutions.
- Market Cap: $234 million
- Revenue (LTM): $503 million
- Debt (FQ0): $0
- YTD Price Change: +3.7%
Mogo Finance Technology Inc. (TSX: MOGO) – $3.45
Mogo Finance Technology Inc. is a Canada-based financial technology company, which is focused on building a digital financial brand, Mogo. The Company’s technology platform provides consumers with access to responsible credit solutions. The Company leverages big data algorithms and the technologies to manage the customer experience. The Company has over 180 thousand Mogo Members and over 1.2 million loans originated. It offers liquid installment loans with amounts of up to approximately $35,000.
- Market Cap: $63 million
- Revenue (LTM): $51 million
- Debt (FQ0): $87.01 million
- YTD Price Change: +79.7%
Versapay Corp. (TSXV: VPY) – $1.45
Business Support Services
Versapay Corp is a Canada-based financial technology company that provides a cloud-based accounts receivable automation software and integrated payment solutions for businesses. The Company operates through two segments: VersaPay Solutions and Point of Sale Merchant Services (POS). Through its VersaPay Solutions segment, the Company focuses on electronic invoice presentment with its ARC software (ARC) and develops value added payment technologies, such as its PayPort and VersaPay Gateway. Through its POS segment, the Company acts on behalf of financial institutions to provide merchants with the ability to process credit and debit card payments for card-not-present and card-present transactions, including Internet businesses, mail-order/telephone-order merchants and retail point-of-sale merchants in Canada and the United States.
- Market Cap: $44 million
- Revenue (LTM)): $6 million
- Debt (FQ0): $0.03 million
- YTD Price Change: +20.8%
Peak Positioning Technologies Inc. (CSE: PKK) – $0.09
Peak Positioning Technologies Inc. is development-stage information technology portfolio management company. The Company develops and operates financial technology platforms that digitize, automate and bring the supply chain management of China’s industrial business sectors, including financial technology, e-commerce and cloud computing to the Web. The platforms allow for the tracking, recording and analysis of every transaction associated with the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
- Market Cap: $38 million
- Revenue (LTM): $26 million
- Debt (FQ0): $0.57 million
- YTD Price Change: +80.0%