The allure of a fintech stock is one that’s relatively easy to understand. Investors tend to like this group of stocks for the upside leverage to growth they provide. That’s because these companies combine the growth potential of technology along with the stability and easy-to-understand economics of financial companies.

There’s also some key secular tailwinds worth paying attention to with this sector. Cash is dying. Folks don’t transact like they used to, and financial technology solutions are becoming increasingly important. Thus, with a big pie that’s only getting bigger, fintech companies stand to reap the benefits of this trend for a long time to come.

For those who enjoy the ease and flexibility of paying with one’s phone or transacting online, these companies are among the key players worth considering. As transaction volumes grow, these companies stand to profit from a fee-based model that scales higher with transaction growth.

Whether it’s online and mobile banking, financial software, peer-to-peer lending or a range of other services, these top fintech stocks are among the best options to consider. Let’s dive into what these companies provide for 2023 and beyond.

Block (SQ)

Starting off our list of fintech stocks to buy is Block (NYSE:SQ), the company formerly known as Square. A company which provides hardware and software solutions for merchants looking to simplify payments, Block has surged alongside growth among omnichannel retailers, particularly following the pandemic.

Of late, Block is actually a company that’s been performing relatively well. Last Wednesday, this stock surged 9% by mid-day alone. That’s partly due to a surge in interest around growth-sensitive names that may benefit from a lower pace of rate hikes moving forward.

Interestingly, the degree to which SQ stock has moved relative to its peers is noticeable. I think this likely has to do with the company being beaten down to a greater degree than what’s warranted. Now trading at approximately 2x sales, SQ stock is the cheapest it’s been in a long time.

For those betting that the economy won’t absolutely collapse over the next five years, SQ stock looks compelling here. Heading into 2023, this is a top fintech stock to keep an eye on.

PayPal (PYPL)

Another top-rated fintech company, PayPal (NASDAQ:PYPL) remains among our list of top fintech stocks to buy for a reason.

This company’s services are what many would call universal. Nearly any company operating any sort of online business likely uses PayPal for its payments technology. Accordingly, the massive and broad market PayPal serves makes this company appealing to investors looking to play the sector as a whole.

PayPal is also a company that hasn’t been afraid to put its money where its mouth is. The company has made several acquisitions, bringing in the likes of Venmo, Xoom, Honey, Bill Me Later etc., to further widen its user base.

As of 2021, PayPal’s revenue was over $25 billion. PayPal is hands-down the most used payment app out there. Accordingly, the company is a crucial growth stock for many long-term investors looking to play the fintech space. As the company’s revenue increases over time, so too should the company’s valuation.

Profitability has been the key concern with PayPal of late. That said, I expect the company to break even in the coming quarters, assuming we see a stabilization of markets next year.

Upstart (UPST)

A leading AI-driven lending platform, Upstart (NASDAQ:UPST) was one of the high-flyers of 2021. As far as high-powered fintech stocks goes, Upstart is probably a name most investors should be aware of.

Currently falling from grace, previously trading around an all-time high around $400 (now under $18), this is a company many may have lost faith with. Indeed, this kind of drop is one that’s hard to swallow for many investors, who may now view the company as “uninvestable”.

That said, there’s a reason why Upstart is on this list. At this significantly reduced valuation, UPST stock now looks very attractive. Lending activity may remain slow for some time. However, Upstart’s reach into various loan sectors is what I think could provide stability in difficult times. Whether it’s auto loans, personal loans, or other offerings, Upstart’s technology makes the lending process much simpler and easier for lenders. Anything that can increase lending volume over the long term is something its clientele will want.

Even if there’s economic turmoil, I think Upstart’s solutions will remain in high demand. While 2023 may be another tough year, it’s hard to see a scenario where most of the potential bad news isn’t already priced in. Thus, I think now may be the time to get bullish on UPST stock.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.