Which fintech company has a brighter future?
Self explanatory title, but also curious to know the thoughts! SQUARE: Market Cap: 107.45 B Enterprise Value: 103.74 B Products: Cash app, online/in-store POS systems COINBASE: Market Cap: 46.45 B Enterprise Value: 45.02 B Products: Crypto trading platform, and wallet PAYPAL Market Cap: 332.57 B Enterprise Value: 328.42 B Products: venmo, xoom, Braintree, online payments ROBINHOOD Private Last Funding Round: 2.4 B (Feb 21) Products: stocks/options/etf/crypto trading platform SOURCE: yahoo finance #finance #Fintech #paypal #robinhood #square #coinbase
Stripe?
This. Again, Stripe charges so high for their omni channel solutions. However, their new IDaaS is impressive.
Thread for Square
Thread for Robinhood
Curious how much Revenue RH is making per year
Around 1b last year and this year. But given this super bull market for both stock and crypto won't last as long as fed start to taper QE, and in 2019 their growth rate is already declining. Plus Gary Gensler is aiming at reforming the PFOF market structure, which is their single largest income source. So I would say there is not much upside left
Thread for Coinbase
many projects in the works people don’t know about
Do you know of any such projects in work? 🙊🙊
Bolt
brex
Plaid $2.65B in 2018 (Series C) $5.3B in late 2020 (DOJ-blocked Visa acquisition) $13.4B in 2021 (Series D) I think they'll hit at least $50B but can see them hitting $100B or even $500B. Reasons to be bullish: - 1 in 4 Americans have used their product already without knowing it - Moat in the form of a chicken-and-egg problem (bank partnerships/consumer data) - High engineering bar - Branching out into new applications (e.g., income verification) of having consumer data - Expanding overseas - Using Plaid (or one of their competitors, like Yodlee) is a no-brainer if you're developing in fintech - They have consumer financial data + sit at the center of fintech, so they're able to shake up how finance works altogether (e.g., by making bank-to-bank transfers more common) and go after huge incumbents like Visa (the Visa acquisition was defensive) - Biden's executive orders about banks giving consumers their financial data could significantly advantage Plaid - They're like a smaller Stripe Reasons to be bearish: - Expanding overseas is hard because Europe already has Open Banking - If the banks start implementing Open Banking, it'll be a lot easier to compete with Plaid domestically - What they're doing- creating sign-in screens that look very similar to bank logins- feels uncomfortably close to phishing - They're about as old as Robinhood but only 1/4 the valuation
Thread for PayPal
I just think people randomly vote based on comp and blind standards. PP's only true competitor here is Square. But again, PayPal is expanding in several areas and projected growth until 2025 is phenomenal. Recently, you would have gotten an email about new fee for Venmo, they are monitizing in all areas. Coinbase I honestly don't understand the moat and so is Robinhood. Latter colonies pay higher for employees, but that doesn't make them better business opportunities.