DECEMBER 12, 2022
8 min read
As we get closer to 2023, it’s critical to keep an eye on the US fintech companies that are shaking up the market. These businesses are transforming how individuals engage with money and show no signs of weakness.
In the previous decade, fintech has become the world’s fastest-growing sector. Money transfers between businesses all over the world had never been so simple until Fintech. It has facilitated numerous financial operations by employing technology such as mobile banking, trading, and cryptocurrency apps.
This blog will teach you about certain great fintech US companies. But before that, let’s answer a key question: what exactly is fintech?
What are FinTech Companies?
A fintech company develops technologies that improve and automate banking services. Fintech meaning is based on sophisticated technology and algorithms that run on desktops and, ultimately, mobiles, assists businesses, individuals, and governments with their money issues. The term “FinTech” refers to the combination of “technology” and “finances.”
Fintech is far from a passing craze, and its importance cannot be understated. We’ve witnessed a huge shift in how we handle our companies and personal money in recent years, thanks to the growing financial technology industry and largest fintech companies in the US.
Furthermore, many fintech (financial technology) organizations are developing to make financial services more readily available to the general public. Top fintech companies in the US provide financial services that cover traditional banking activities like investment, savings, credit risk management, and even more.
Which FinTech Sectors have the most FinTech Companies in the US?
WealthTech and PayTech are undoubtedly the most prevalent sectors in the fintech billion-dollar society, accounting for almost 50% of unicorns. The Challenger Bank area placed second on the list, and it is a booming segment in the United States as well.
Although the epidemic has accelerated the evolution of both of these industries, the shift in customer behavior and the need for these new-age financial services will likely continue into the future.
Among other popular fintech sectors, the insurance industry has opted to go digital via mobile applications and leverage technology to disrupt the present paradigm and reach a larger portion of their target population. This also happened in light of the health disaster caused by the COVID-19 outbreak.
Some of the most sought-after investment options include social insurance coverage, ultra-customizable plans, and dynamic pricing based on emerging data streams from internet-connected devices.
However, only time will determine how the sector will evolve. And we’ll be keeping a careful eye on everything.
10 Promising Fintech Companies in the USA in 2023
Let’s take a look at some of the top fintech companies in the US to see how they’re thriving in today’s market.
Stripe, which was founded in 2011, assists businesses of all sizes in processing online payments, obtaining business financing, and seamlessly calculating and collecting sales tax.
In 2019, it introduced a new Corporate credit card and a new business loan with a straightforward payback approach.
With a $95 billion valuation raised in 2021 Series H financing, the business is one of the most lucrative American corporate financial technology companies and the world’s fourth-most powerful private firm. Stripe generated $640 billion in transactions last year, a 60% rise over the previous year.
SoFi is a values-driven organization with a mission to help its customers make better financial decisions. It develops modern financial products and services that enable people to borrow, help in saving, spend, invest, and protect their money more effectively, allowing them to achieve financial freedom and reach their full potential—owning a home, saving for retirement, and repaying school loans, among other things.
SoFi, founded in 2011 and located in San Francisco, California, assists its clients in making the best use of their finances across a wide range of service categories among other top US fintech companies, including loaning, investing, cryptocurrency trading, personal credit tracking, and budgeting, banking, and healthcare.
It made $985 million in sales in 2021 and aims to make more than $1.5 billion in 2022, so we can only imagine the numbers that are waiting for us in 2023.
Ripple Labs, Inc. is a US-based technology company that developed the Ripple payment system and exchange network. The startup was founded in 2012 in San Francisco, California. It was once named “Opencoin” before being rebranded in 2015. Ripple is a peer-to-peer network as well as a digital money transfer service. Ripple’s network covers 40 countries on six continents.
This is a two-party open-source transaction protocol. All currencies are accepted, including pounds, cryptocurrencies, and air miles. Ripple Labs and other industry heavyweights co-founded the Digital Asset Transfer Authority (DATA) in July 2013. DATA delivers best business practices and technical standards to enterprises that use digital money and other emerging payment systems.
Even in a sector dominated by innovators like fintech, Sweden’s Klarna is often regarded as an example of one of the top fintech companies. Growing from a small company in Stockholm in 2005, it currently executes an amazing two million transactions daily, serving more than 147 million clients worldwide with its unique buy now, pay later services.
Most of the business’s revenue is generated by billing retail partners for affiliate marketing and payment solutions.
Klarna grabbed attention this year with its skilled management of ongoing global financial crises, demonstrating how large the business loomed in the fintech sector. It has announced the imminent introduction of real Klarna-branded Visa cards in U.S. regions, continuing its incredible expansion history.
Square, founded in 2009, is a publicly traded financial startup offering companies online payments and point-of-sale services. The company’s market value is $27.7 billion and has a team of over 3,000 people.
Square is, obviously, one of the fintech companies. USA firm is located in San Francisco, with branches in Atlanta, New York, Toronto, Japan, and the United Kingdom. Besides its primary payment processing business, Square provides various additional financial services like loans, invoices, and promotions.
Square is a prominent Fintech company since it provides organizations with a wide range of goods and services.
The company also provides a range of tools to help business owners operate their processes more efficiently. These features include accounting, inventory monitoring, and employee time sheet management. Square is a low-cost solution for small and medium businesses, with customer service available 24 hours a day, seven days a week.
Revolut, a British fintech, and digital banking firm, has swiftly become the most trustworthy source for online financial services. It has broadened its products to include crypto and trading platforms, digital credit and debit cards, and exchange rates, in addition to bringing its successful all-in-one money management software to additional foreign markets.
Revolut’s development has been characterized by unprecedented expansion, with the company growing from its inception in 2015 out of fintech incubator Level39 to today employing 3,500 people and generating $361 million in sales by 2020.
Revolut just received formal bank accreditation in eleven European countries, indicating a brand-new era of growth.
Robinhood, a privately owned fintech business founded in 2013, provides no-commission stock and cryptocurrency trading. Andreessen Horowitz, Google Ventures, and Sequoia Capital contributed to the business’s $539 million fundraising.
The firm provides no-commission stocks, cryptos, and possible alternative trading. Robinhood also offers a Cash Management account without any fees and a 0.3% interest yield.
Robinhood is a commission-free stock market software that makes investing simple and inexpensive for companies. Companies may use Robinhood to sell and buy stocks, ETFs, options, and cryptocurrencies without incurring any fees. Furthermore, Robinhood provides a number of services that make it simple for companies to keep updated about their investments.
Betterment is based in New York and has offices in Denver and St. Louis. The firm provides robo-advisory services, including individualized advice and portfolio management. Betterment also offers retirement planning as well as tax-loss harvesting. The firm charges a yearly fee of 0.25% of assets managed.
Betterment is a great option if you want a simple, effective approach to managing your funds. This top-rated fintech firm provides a variety of services to assist you in saving money, growing your wealth, and planning for the future.
Betterment is a great place to start if you’re willing to take control of your financial destiny.
#9 Bright Health
Bright Health, founded in 2016, is a health insurance company situated in Minneapolis, Minnesota. This digital healthcare insurance service is available to both individuals and organizations. It offers dental and optical care, prescription drugs, psychosocial support, and other offerings. Customers can also use a network of doctors, health centers, and other health authorities to get better treatment.
Bright Health works with a select group of specialists and hospitals to reduce medical expenses and make case management easier for those enrolled in their program. The firm works with them to provide services centered on vital health systems in the market. Bright Health refers to these groups as “care partners.”
As of April 2021, it served more than 220,000 users through online and in-person services in more than 50 cities throughout thirteen states. The business’s technologies are completed by a user interface, a data analytics system, and a framework that communicates with electronic medical records and telemedicine suppliers because of what it considered as one of the best US fintech companies.
Adyen, a publicly traded Dutch payment firm, enables businesses all over the world to conduct operations by utilizing cutting-edge point-of-sale and e-commerce technologies. Partners such as Microsoft, eBay, and Uber utilize the Adyen system for processing payments online.
The firm has a solid track record of success, having processed €516 billion worth of transactions in 2021, an achievement enabled by its staff of over 2,000 technological specialists operating from 26 global offices. Adyen was founded by a group that includes Pieter van der Does, the firm’s existing Chief Executive Officer and a finance industry expert.
Fintech has clearly established itself as an important actor in the world economy, economic system, and current societal framework. The field is large and ever-expanding.
Despite the fact that the current market for finance technology companies is incredibly promising, it is not as simple as picking a specialization and becoming one of the top fintech startups. An out-of-the-box proposal, on the other hand, supported by a clearly defined plan and executed by a dependable, skilled development team, may exceed your expectations.
DashDevs is eager to be your devoted fintech development company and disrupt the industry with an innovative solution. We can provide you with our fintech expertise and competency based on our 10+ years of experience. Please contact us to discuss the specifics, and we will bring your financial concept to reality!
How many fintech companies are there in the USA?
Fintech is clearly a huge business in the United States. According to Statista’s 2021 study, there were about 10,800 fintech companies in the United States as of November 2021, making it the area with the most companies worldwide.
Only about 1% of the 10,800 fintechs are unicorns with a valuation of $1 billion or more. Though this may appear to be a drop in the bucket, the United States’ 105 unicorns account for almost 50% of the world’s fintech unicorns.
What are fintech startups?
A fintech startup is a young firm that aims to establish itself by delivering financial services in a contemporary fashion, such as by digitizing and automating them or improving the user experience. The most prevalent practice is to employ developing technologies such as AI, big data, blockchain, and so on.
What are the top fintech companies in the USA?
We have already discussed the top fintech companies that are now dominating the industry in this article. The following is a generalized list of the top firms in the USA.
- Toast, Inc
- Credit Karma