CNBC

There may be a changing of the guard underway in financials. 

The market caps of payment stocks like Visa and MasterCard have eclipsed the value of Wall Street’s biggest banks, even as their balance sheets remain significantly smaller in comparison.

Square, Visa, PayPal and MasterCard are collectively worth $1.07 trillion, while the “big six” banks, which include JPMorgan, Bank of America, Wells Fargo, Citigroup, Morgan Stanley and Goldman Sachs are worth less than $900 billion in total. 

A large portion of gains in market value have come in 2020, as investors continue to reward software-based tech companies amid the pandemic. The ETFMG Prime Mobile Payments ETF, which tracks mobile payments stocks, is up nearly 10% in 2020, while the Financial Select Sector SPDR Fund is down nearly 20% so far this year. 

Source

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The post Market value of big fintech companies rises to $1 trillion, more than the largest banks appeared first on The Strawhecker Group.

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