Best Cheap Cash App Stocks to Buy Now: Unlocking Growth Potential in the Fintech Space

Imagine opening your Cash App one morning and seeing a notification telling you that the stock you purchased at a bargain price had just surged by 150%. Sounds too good to be true? It’s not, and many savvy investors are already reaping the rewards of buying cheap fintech stocks like those connected to Cash App. With the fintech industry growing exponentially and changing the way people handle money, there’s a wave of undervalued stocks that could yield high returns in the near future. But what exactly are these stocks, and why are they so attractive right now?

Cash App’s Role in the Fintech Revolution

At the center of this revolution is Square, Inc. (now Block, Inc.), the parent company of Cash App. Since its inception, Cash App has become one of the leading digital payment platforms, offering peer-to-peer payments, Bitcoin trading, stock buying, and even the ability to receive direct deposits. With over 51 million monthly transacting users as of 2023, the platform has captured a large share of the mobile payment market, especially among younger generations.

Block, Inc.’s stock (SQ) is a prime example of how fintech companies are changing the investment landscape. After an initial surge during the pandemic, when digital payments boomed, Block’s stock saw a significant pullback, making it an attractive option for investors looking for a cheap entry point. At around $60 per share, Block offers a compelling growth opportunity as the demand for digital finance continues to rise.

Why Cheap Doesn’t Mean Low Quality

Before diving into the top cheap Cash App-related stocks, it’s essential to understand that "cheap" doesn’t always mean low quality. In stock market terms, a cheap stock typically refers to a stock with a low price relative to its potential earnings. These stocks are often referred to as "undervalued" because their price doesn’t fully reflect their actual or future worth.

In the fintech sector, where innovation is fast-paced, many companies are still in the growth phase, and their stock prices might not yet reflect their future potential. This is where savvy investors can get in early and ride the wave of growth. The following are a few cheap Cash App-related stocks that have the potential for significant growth.

1. Block, Inc. (SQ)

• Current Price: ~$60 per share
• Why it’s a Buy: Block, Inc. has built a financial ecosystem that includes Cash App, which is growing rapidly. Block is well-positioned to benefit from the increasing adoption of digital payments and financial services. Its stock has seen a significant dip, making it an attractive buy at its current price.
• Growth Potential: As Cash App expands its product offerings and enters new markets, Block’s revenue and stock price are likely to rise, especially with the growing interest in Bitcoin trading and investing through the app.

2. PayPal Holdings, Inc. (PYPL)

• Current Price: ~$65 per share
• Why it’s a Buy: Although not directly tied to Cash App, PayPal is a giant in the fintech world, offering a similar suite of services, including peer-to-peer payments, crypto trading, and merchant services. PayPal has consistently proven its ability to adapt and grow in the digital finance space.
• Growth Potential: PayPal is expanding into new markets and services, including Buy Now, Pay Later (BNPL) and cryptocurrency trading, making it a solid contender for future growth. Its stock is currently undervalued due to short-term challenges, providing a great buying opportunity for long-term investors.

3. SoFi Technologies, Inc. (SOFI)

• Current Price: ~$8 per share
• Why it’s a Buy: SoFi is a newer player in the fintech world but has rapidly gained traction with its diverse range of financial products, including loans, investing, and banking. The company’s innovative approach and user-friendly platform have made it popular among millennials and Gen Z.
• Growth Potential: SoFi is growing its user base and revenue at a rapid pace. Its stock price is currently low, offering a chance to invest in a company that could be a major player in the fintech space for years to come.

Why Timing is Crucial

In the stock market, timing is everything. Many of these cheap fintech stocks are undervalued due to market conditions such as inflation, rising interest rates, and global economic uncertainty. However, these factors are likely temporary, and the long-term growth potential of the fintech industry remains strong. As digital payments become more ubiquitous and people increasingly adopt fintech solutions, the companies behind these platforms stand to benefit immensely.

Analyzing the Risks

Of course, with any investment, there are risks involved. Fintech stocks, especially those on the cheaper side, can be volatile. The regulatory environment for fintech companies is still evolving, and increased regulation could impact profits. Additionally, competition in the sector is fierce, and any company that fails to innovate could quickly fall behind. However, for investors with a long-term view and a tolerance for risk, the potential rewards of investing in these cheap stocks far outweigh the risks.

A Comparative Look at Cash App and Its Competitors

To better understand why Block, Inc. and other fintech companies are a good buy, it’s essential to compare them with competitors in the space. Venmo (owned by PayPal) and Zelle are Cash App’s biggest rivals. While Venmo has a similar user base and service offering, Cash App has differentiated itself by integrating stock and Bitcoin trading, a move that has attracted younger, more tech-savvy users.

Fintech Company	Key Features	Stock Price	Growth Potential
Block, Inc. (SQ)	Cash App, Bitcoin trading	~$60	High
PayPal (PYPL)	Venmo, BNPL, crypto trading	~$65	High
SoFi (SOFI)	Loans, banking, stock trading	~$8	High

Conclusion

Cheap fintech stocks like Block, PayPal, and SoFi represent excellent buying opportunities for investors looking to capitalize on the growth of digital finance. While there are risks involved, the potential upside is enormous, especially as fintech companies continue to disrupt traditional financial systems. By investing in these companies now, you could be setting yourself up for significant returns in the future.

Timing is critical, and with the stock prices of these companies at a low point, there’s no better time to buy than now.