Written By
David Rodeck
Investing Expert Writer
Michael AdamsInvesting Editor
Michael Adams is an investing editor. He's researched, written about and practiced investing for nearly two decades. As a writer, Michael has covered everything from stocks to cryptocurrency and ETFs for many of the world's major financial publicatio...
See Full Bio
Michael AdamsInvesting Editor
Michael Adams is an investing editor. He's researched, written about and practiced investing for nearly two decades. As a writer, Michael has covered everything from stocks to cryptocurrency and ETFs for many of the world's major financial publicatio...
See Full Bio
Michael Adams
Michael AdamsInvesting Editor
Michael Adams is an investing editor. He's researched, written about and practiced investing for nearly two decades. As a writer, Michael has covered everything from stocks to cryptocurrency and ETFs for many of the world's major financial publicatio...
See Full Bio
Michael AdamsInvesting Editor
Michael Adams is an investing editor. He's researched, written about and practiced investing for nearly two decades. As a writer, Michael has covered everything from stocks to cryptocurrency and ETFs for many of the world's major financial publicatio...
See Full Bio
Reviewed
& 1 other
Updated: Mar 21, 2024, 4:40pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Fintech—short for financial technology—is an emerging class of companies that use technology to automate and improve financial services for businesses and consumers.
From apps and software to algorithms and artificial intelligence, fintech fuses two of the biggest and richest sectors of the economy, finance and tech. As you might imagine, this makes for an extremely valuable class of companies. But after valuations soared to record levels in 2021, most have come down to earth more recently.
To help you better understand this enticing business, Forbes Advisor has profiled ten of the largest privately held fintech companies on earth. Since they have not yet held an initial public offering, you cannot buy shares of private companies on the stock market. That also means that private market valuations are estimates based on the firm’s last private capital raise.
Read more
Best Ofs
- Best Portfolio Management Apps
- Best Online Brokerage Accounts
- Best Investment Apps
- Best Robo Advisors
- Best Crypto Exchanges
- Best Crypto Wallets
- Choosing A Financial Advisor
Show Summary
- What Are the Biggest Fintech Companies of 2024?
- Ant Group
- Stripe, Inc.
- Revolut
- Chime Financial, Inc.
- Rapyd
- Plaid
- Brex, Inc.
- GoodLeap
- Bolt
- Checkout.com
- What Is Fintech?
- How Does Fintech Work?
- How Are Private Companies Valued?
What Are the Biggest Fintech Companies of 2024?
Fund | Expense Ratio |
---|---|
Ant Group | $78.5 billion |
Stripe, Inc. | $50 billion |
Revolut | $33 billion |
Chime Financial, Inc. | $25 billion |
Rapyd | $15 billion |
Plaid | $13.4 billion |
Brex, Inc. | $12.3 billion |
GoodLeap | $12 billion |
Bolt | $11 billion |
Checkout.com | $11 billion |
Ant Group
Valuation
$78.5 billion
Headquarters
Hangzhou, China
Year Founded
2004
$78.5 billion
Hangzhou, China
2004
Editor's Take
Ant Group runs Alipay, which is the largest payment network in China. Alipay offers a digital wallet and a widely used payments app. Users can scan a QR card with merchants to make payments without using cash or a credit card. Alipay has over one billion users worldwide.
In 2020, Alipay was planning to go public with a valuation of over $300 billion. However, it ended up canceling the deal and has since faced regulatory issues with the Chinese government. In July 2023, Ant Group bought back some shares from investors at a valuation of $78.54 billion. Despite its troubles, this still makes Ant Group the world’s most valuable private fintech company.
Stripe, Inc.
Valuation
$50 billion
Headquarters
San Francisco and Dublin, Ireland
Year Founded
2009
$50 billion
San Francisco and Dublin, Ireland
2009
Editor's Take
Stripe offers payment processing software that allows businesses to collect money from customers. Many merchants can get instant account approval, making Stripe a quick solution for payment processing. In 2022, Stripe said it processed over $817 billion in transactions, with clients ranging from small startups to massive corporations like Amazon, Google, and Shopify. Stripe has dual headquarters in San Francisco and Dublin, Ireland.
In 2023, Stripe raised $6.5 billion at a $50 billion valuation. While this makes Stripe the most valuable fintech company in the United States, it’s a significant downgrade from before. In 2021, Stripe had a $91 billion valuation but lost value after market conditions got tougher for technology companies.
Revolut
Valuation
$33 billion
Headquarters
London, U.K.
Year Founded
2015
$33 billion
London, U.K.
2015
Editor's Take
Based in London, Revolut is Europe’s most valuable fintech company. It provides mobile banking services, debit cards (Prepaid debit cards in the U.S.), international transfers and currency exchange, as well as investments. Revolut’s investment app offers no fee trading of stocks and cryptocurrencies (not available within the U.S.). While Revolut started by focusing on the European market, it has since expanded around the world, including the U. S. and Japan.
Revolut received a $33 billion valuation the last time it raised money from investors in July 2021. This would make it the third-most valuable bank in the UK, behind only HSBC and Lloyd’s of London. However, investors worry Revolut has lost value, with shares selling on secondary markets at a significant discount from their past price.
Revolut is a financial technology company. Banking services provided by Metropolitan Commercial Bank (Member FDIC).
Chime Financial, Inc.
Valuation
$25 billion
Headquarters
San Francisco
Year Founded
2012
$25 billion
San Francisco
2012
Editor's Take
Chime is a fintech company that provides banking services, although technically speaking, it is not a bank. The company provides free checking and high-yield savings accounts, online banking, and a debit card with access to over 60,000 ATMs. Chime provides services by partnering with other banks. Customers sign up for Chime using its mobile app. Founded in San Francisco in 2012, today Chime has over 14 million customers.
In 2021, Chime had a market valuation of $25 billion. However, the company has delayed its IPO and laid off about 12% of its workforce, roughly 160 employees. It may no longer be worth $25 billion.
Rapyd
Valuation
$15 billion
Headquarters
London, U.K.
Year Founded
2016
$15 billion
London, U.K.
2016
Editor's Take
Rapyd is an Israeli fintech company that specializes in global payment services. Through the Rapyd platform, customers can send funds across country borders through debit/credit cards, bank transfers, digital wallets, and cash. Rapyd handles payouts in over 190 countries and works to lower the cost of transaction and foreign exchange (FX) fees compared to the traditional banking system.
Rapyd has expanded over the past couple of years by acquiring companies in Asia and Europe. It received a valuation of $15 billion from investors in early 2022, increasing its market cap by six times over a year. Rapyd is the most valuable fintech and the most valuable privately held company in Israel.
Plaid
Valuation
$13.4 billion
Headquarters
San Francisco
Year Founded
2013
$13.4 billion
San Francisco
2013
Editor's Take
Plaid works as an intermediary between your financial accounts and apps. This lets you connect your bank account to these apps while keeping your information secure. Betterment, Chime and Venmo all rely on Plaid to connect their users’ other financial accounts. According to the company, 12,000 financial institutions are connected via Plaid.
Plaid launched in 2013 and has its headquarters in San Francisco. Plaid had a market valuation of $13.4 billion when it last raised money in 2021. At the time, it was considering a merger with Visa but has since continued to operate as its own company using investor cash to fund operations.
Brex, Inc.
Valuation
$12.3 billion
Headquarters
San Francisco
Year Founded
2017
$12.3 billion
San Francisco
2017
Editor's Take
Brex provides business banking services through its platform and technology. This includes corporate credit cards, expense management, bill payment, and travel bookings. A business can supervise and manage spending for the company and its employees through this platform. Brex is an alternative to the traditional banking system. It offers cash management accounts and venture debt, a type of financing for startup companies.
Brex has its headquarters in San Francisco and was founded in 2017. It received a $12.3 valuation when it raised $300 million in financing in early 2022.
GoodLeap
Valuation
$12 billion
Headquarters
Roseville, Calif.
Year Founded
2003
$12 billion
Roseville, Calif.
2003
Editor's Take
GoodLeap works in financing sustainable home improvements. Its app connects consumers with lenders and companies that install solar panels and other home improvements. GoodLeap started out financing solar panels but has since expanded its system to cover other improvements like battery storage and energy-efficient windows.
The company’s founders used to work for SolarCity before the company was bought by Tesla. In 2021, GoodLeap received a $12 billion valuation during a fundraising round. Given the soaring demand for green energy and the massive investments in the sector from the Inflation Reduction Act of 2022, it could be worth even more for future rounds.
Bolt
Valuation
$11 billion
Headquarters
San Francisco
Year Founded
2014
$11 billion
San Francisco
2014
Editor's Take
Bolt is an e-commerce checkout software provider with a one-click checkout tool. Customers sign up once for an account and provide their address and payment information. From then on, they just need to enter a pin and have everything ready for future purchases. This speeds up the process and makes customers less likely to abandon an order midway through.
Bolt had a valuation of $11 billion during its last round of fundraising when it brought in $355 million. However, it has struggled and laid off about half of its workforce since then. Bolt’s market cap could be far lower than the past official valuation.
Checkout.com
Valuation
$11 billion
Headquarters:
London, U.K.
Year Founded
2012
$11 billion
London, U.K.
2012
Editor's Take
Based in London, Checkout.com is a payment processing company. Customers can use the company’s APIs to accept payments through their website or app. Customers can also process payments directly through payment pages and links hosted by Checkout.com. Its global reach means that it accepts processing payments in over 150 currencies. In addition, the platform provides fraud management and data insights on collected payments.
Like many fintech companies, Checkout.com is less valuable than it used to be. It reevaluated internally and determined its current valuation is $11 billion, a significant drop from the $40 billion it was estimated to be worth in 2021.
*Private company valuations are estimates based in part on the firm’s last private capital raise. All valuation figures are approximate, sourced from company information and major media reporting.
What Is Fintech?
Fintech is one of those jargon words beloved in the worlds of tech and finance. Short for financial technology, fintech is nothing more than the application of technology to improve financial services. Anyone who’s tried to resolve issues with a big bank or another large financial firm knows that the industry could use the help.
Tech companies have been disrupting and revolutionizing every corner of the economy for decades, but financial services were long considered a stubborn holdout to this trend. But over recent years, tech startups have made serious inroads, applying software, analytics and data to build online platforms and apps with features that improve—or even replace—conventional financial services.
As an industry, fintech covers a wide range of solutions that cater to diverse financial needs, including but not limited to online payments, peer-to-peer lending, digital wallets, crowdfunding, robo-advisors, blockchain and mobile banking.
How Does Fintech Work?
Fintech companies endeavor to provide more efficient, cost-effective, and accessible financial services to individuals and businesses. It is disrupting the financial industry by fostering competition and challenging established players, encouraging them to adapt and innovate.
A big element of fintech’s popularity is its mission to reach underserved populations, such as those without access to traditional banking services, enabling financial inclusion and empowerment.
But fintech also faces big challenges in areas of law, compliance, security and consumer protection. When protecting the details and security of consumers’ intimate financial lives is at stake, governments and large financial institutions can find plenty of issues with the tech industry’s desire to move fast and break things.
How Are Private Companies Valued?
Valuing private tech startups is a difficult task as they aren’t subject to the same transparency and financial disclosure regulations publicly traded companies are. The valuations of the companies on our listing above depend on the unique contours of fintech.
Funding history and potential dilution effects on existing shareholders are key considerations in private company valuations. A fintech’s past funding rounds and the amount of equity already issued strongly influence its total current valuation.
Another factor is the private company’s total market opportunity. Evaluating the size and potential of a fintech’s target market is crucial, as they are aiming to disrupt large existing markets—or alternatively create markets for financial services that did not exist before. Assessing a firm’s total addressable market (TAM) helps gauge a fintech’s potential future revenue.
Comparable transactions provide benchmarks for fintech valuations. Analyzing recent acquisitions or funding rounds of similar companies helps investors understand a fintech’s relative value and its potential for growth.
Finally, a fintech’s present user base and traction are indicators of potential success. Active user numbers, customer engagement and adoption rates can demonstrate a company’s ability to attract and retain customers.
Next Up In Investing
- Buy The Dip: Best Cheap Stocks To Buy Now
- The Best Growth ETFs
- Why Is Inflation So High?
- What Are I Bonds?
- Acorns Review
- Robinhood Review
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.