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Forbes
43 minutes ago
- Forbes
The $400B Fintech Gold Rush: Crypto Payment Rails
The financial plumbing powering our daily transactions is being rebuilt, and the infrastructure companies operating behind the scenes are reaping the benefits. When Sarah Chen tapped her Coinbase card to buy coffee in downtown San Francisco, the barista barely looked up as the payment cleared in seconds. Coinbase instantly converted her crypto to dollars and authorized the charge. The payment glided across Visa's network, processed through Stripe, and landed in the merchant's account. She walked away, unaware she had just taken part in a $400 billion gold rush. Fortunes here are made not in mines, but in the invisible highways of financial infrastructure. With crypto established as a legitimate asset class, held by ETFs and on the verge of inclusion in 401(k)s and retirement plans, the next leap is inevitable: spending it as effortlessly as cash. That shift isn't just a convenience upgrade; it's a multi-hundred-billion-dollar race to build the payment rails that let crypto flow through the same networks as fiat money. That gold rush isn't about flashy apps or the next hot token. It is about the payment backbone, the underlying systems powering a financial transformation most people never see but everyone increasingly depends on. The Last Mile Problem Sarah's seamless experience masks a deeper reality: for all its progress, crypto's core challenge remains unresolved. You might hold thousands in Bitcoin, but try buying groceries and you'll hit a wall of friction that makes spending feel like solving a Rubik's Cube in the checkout line with a timer ticking down. The solution isn't flashy; it's infrastructural. While consumer apps grab headlines and venture capital, the heavy lifting happens in the underlying systems: payment processors, compliance engines, and settlement networks that make crypto cards work at any merchant accepting traditional payment methods such as Visa, Mastercard, AmEx, Apple Pay, Google Pay, or PayPal. Think about the hidden complexity behind Sarah's coffee purchase. Marqeta issued her Coinbase card. When she tapped to pay, Coinbase instantly converted her crypto to dollars and authorized the transaction. Visa's network carried the payment to Stripe, which processed it for the coffee shop. Seconds later, the merchant was paid. This entire chain handled conversion rates, compliance checks, and regulatory requirements automatically, making the complexity invisible and the experience effortless. The economics are compelling. Card processing fees typically range from 1.5% to 3.5% of the purchase price. On Sarah's coffee ($5), that's roughly $0.07–$0.17 split among the players, small numbers at the transaction level, but massive at scale. Multiply by millions of daily transactions, and the incentives for controlling these rails become obvious. From Tap to Settlement: The Invisible Ballet Behind Every Crypto Payment McKinsey projects global fintech revenues will surge past $400 billion by 2028, growing 15% annually versus just 6% for traditional banking. The fastest-growing slice is the infrastructure layer: payment rails, custody platforms, and compliance systems. $150 billion to $205 billion in banking revenue has already shifted to these infrastructure providers. It's a land grab for digital finance's foundations. Infrastructure players are locking down the pipes that move the money, competing to control the world's payment flows while the market is still taking shape. Three Forces Driving The Infrastructure Gold Rush Embedded Finance: Money Is Vanishing Into The Platforms Loans from Shopify, insurance from Tesla, and payments through Uber. Financial services are no longer destinations; they're features hidden inside the apps and platforms we use every day. The scale is staggering. Embedded finance is projected to handle $7.2 trillion in transaction volumes by 2030, larger than most national economies, and increasingly dependent on payment systems that can handle both fiat and crypto with equal ease. Amazon isn't just a retailer; it's a bank, lender, and insurer. Uber makes as much from payments as it does from rides. Shopify realized the real profit wasn't building websites, but processing the billions flowing through them. All of this drives demand for financial infrastructure. Every app offering "buy now, pay later" or instant payouts needs card issuers like Marqeta, data connectors like Plaid, and processors like Adyen. These firms quietly capture a slice of every transaction, and the consumer never sees them. Blockchain Becoming Pervasive What began as a niche experiment is now mainstream money. With 659 million holders worldwide and 28% of U.S. adults owning digital assets, crypto has shifted from speculative bet to spendable wealth. That scale is fueling demand for infrastructure that can convert digital assets into everyday purchases seamlessly. This shift is mirrored in traditional finance, where blockchain has leapt from crypto forums to bank boardrooms: JPMorgan processes over $2 billion a day through blockchain settlement, UBS runs "Digital Cash" for instant cross-border payments, and Visa's Tokenized Asset Platform with Mastercard's Multi-Token Network signals that blockchain-based payment rails are here to stay. Fireblocks secures over $10 trillion in digital asset transactions for major banks, ConsenSys powers 100 million wallets, and Alchemy became the "AWS of blockchain" for enterprise. Infrastructure providers are becoming indispensable. AI Guards Every Transaction AI eliminates decades of financial inefficiency. Every crypto payment triggers algorithms verifying wallet history, assessing risk, and optimizing conversion rates in under 200 milliseconds. AI can flag suspicious wallets mid-transaction or approve high-value payments instantly. Juniper Research projects AI fraud detection spending will exceed $10 billion by 2027. But AI's impact extends beyond fraud: instant underwriting, real-time risk assessment and compliance automation. For infrastructure companies, AI creates competitive moats. Those with superior algorithms for crypto conversion and compliance automation will dominate as transaction volumes explode. The Race For The Financial Stack Visa, Mastercard, and Stripe already own the broad traditional finance highways, but crypto-specific middleware is what allows those highways to be used: the translation layer that connects wallets to card networks, merchant processors, and banking compliance systems. The real competition plays out in this split-second choreography: converting crypto into the language of traditional finance, moving it through currency conversion, risk checks, and regulatory reporting in milliseconds. Companies that master this choreography can capture outsized revenue at the exact moment old rails meet new money. The prize isn't replacing banks or infrastructure; it's connecting seamlessly to it. Every crypto transaction needs traditional bridges, every wallet needs compliance, and every fintech needs banking partners. These connection builders position themselves as essential plumbing for finance's evolution. Players Racing To Own The Rails That translation layer isn't theoretical—it's already a battleground. From consumer-facing crypto cards to enterprise-grade banking APIs, companies are racing to own the critical points where digital assets meet traditional finance. Some are building mass-market ecosystems, others are focusing on specialized infrastructure, but all are competing for the same prize: becoming indispensable at the moment crypto hits the legacy rails. Consumer Payments Layer Major players like and Coinbase have built large crypto card ecosystems with tiered benefits, staking incentives, and broad merchant acceptance. While these giants focused on feature-rich platforms, BFinance bet on simplicity instead: what if spending crypto could be as easy as texting a friend? Each month, it processes $20 million through virtual Visa and Mastercard cards compatible with Apple Pay, Google Pay, and Samsung Pay. Fees are simple: $10 to issue, 2 percent on top-ups, and $0.50 per transaction. Users can load major tokens and access eSIMs, crypto transfers, and bill payments, all inside Telegram. Enterprise Infrastructure Tier Firms like Fireblocks and Anchorage secure billions in digital assets for global banks, exchanges, and asset managers. Taking a different approach, OpenPayd bridge crypto and fiat with a single API offering IBANs, FX, SEPA, and Open Banking services across the UK and Europe. They provide regulatory-compliant rails without the licensing burden. Recent deals with Circle and Ripple enable real-time stablecoin ramps, FX conversion, and cross-border payments—unlocking trusted, bank-grade access to digital dollars and global liquidity. Merchant Acceptance Layer Established processors like BitPay and CoinPayments handle millions in monthly crypto transactions with multi-currency support and merchant integrations. By contrast, leaner platforms are winning adoption by streamlining features and simplifying merchant onboarding. CryptoProcessing by CoinsPaid, for example, powers hundreds of merchants globally and handles tens of millions in monthly volume. The platform supports 20+ cryptocurrencies, real-time fiat settlement, sub‑1.5 percent fees, automatic volatility protection, and no chargebacks. With a single API, fast onboarding, and built-in compliance, it removes friction for merchants integrating crypto-to-fiat payments. Jason Gardner, founder of Marqeta, explains the infrastructure advantage: "I don't want to go compete with a Stripe or an Adyen... There are 3,000 competitors in that [acquiring] space, versus 200 to 300 in issuing and processing. The odds are in our favor." Ultimately, they all rely on the same traditional card networks: Visa and Mastercard. The pattern is unmistakable: the companies controlling how digital value moves at the protocol layer, in the middleware, and at the edge of commerce are the ones shaping the financial stack of the future. Regulations Create Winners And Losers Compliance costs are soaring, with top-tier anti-money laundering systems running up to $50 million annually, effectively locking out smaller competitors and creating regulatory moats for established players. MiCA implementation began on December 30, 2024, requiring full banking licenses for stablecoin issuers by July 2026. In the U.S., the GENIUS Act established a federal stablecoin framework, while Circle became America's first publicly traded stablecoin issuer with a $6.9 billion valuation. Companies like Coinbase and Circle aren't just surviving new rules; they're helping write them, embedding themselves into the financial architecture. For leaders like Marqeta, Coinbase, and Circle, regulatory navigation isn't about avoiding risk; it's about shaping standards that could secure dominance for years. That's why well-capitalized incumbents with compliance teams and political influence are better positioned to turn regulation into a competitive edge. What This Means For The Future This infrastructure gold rush will reshape how money moves globally. Within five years, the distinction between crypto and traditional payments will blur completely. The companies building these rails today are positioning themselves to collect fees on trillions in future transaction volume. For investors, the lesson is clear: while crypto prices grab headlines, the real value lies in the infrastructure enabling its use. For businesses, early adoption of these payment rails could provide competitive advantages. For consumers, this means financial services will become faster, more convenient, and more seamlessly integrated into daily life. Most importantly, they'll finally be able to spend their crypto holdings as easily as swiping a debit card. In fintech's gold rush, the prize isn't the next winning coin; it's controlling the milliseconds between tap and settlement. In finance's new operating system, the infrastructure isn't just king, it's the kingdom. The biggest fortunes will go to those quietly building the invisible highways the rest of us use without ever seeing.
Yahoo
2 hours ago
- Yahoo
3 Dividend-Paying Growth Stocks to Double Up on and Buy in August
Key Points WM's acquisitions are paying off by contributing to free cash flow. IBM lays claim to a formidable portfolio of generative-AI patents, making it a stellar choice for investors seeking AI exposure. Delta Air Lines is leading the way in a new era of profitability for network airlines. 10 stocks we like better than Waste Management › The S&P 500 (SNPINDEX: ^GSPC) is on track to have an above-average year in 2025 after a rapid recovery from a steep sell-off in April. The impressive performance comes on top of back-to-back gains of more than 20% in 2023 and 2024. Needless to say, the S&P 500 is running hot, so investors may want to take extra care to ensure they are targeting quality companies that can justify their valuations with future earnings growth. Here's why these three Motley Fool contributors think WM (NYSE: WM), International Business Machines (NYSE: IBM), and Delta Air Lines (NYSE: DAL) stand out as top dividend stocks to double up on in August. WM is as reliable as it gets when it comes to generating passive income Daniel Foelber (WM): You may be wondering how WM, formerly known as Waste Management, can be classified as a growth stock. But the industrial giant has outperformed the S&P 500 over the last five-year and 10-year periods despite a good chunk of S&P 500 gains being driven by megacap tech stocks. The company isn't delivering groundbreaking innovation in artificial intelligence (AI) or cloud computing. But you could say it is literally turning trash (and recycling) into treasure thanks to its stable and predictable business model. As the population and economy expand, the need for trash and recycling collection, transportation, and processing grows. WM has an integrated business model covering the entire waste management value chain, which gives it more control over its operations and opportunities to increase efficiency. And since WM is the U.S. leader, it has the size needed to take market share through organic growth and acquisitions. The company is steadily growing its operating margins and free cash flow, which is a sign that the business continues to get better. In the second quarter, it reported a 29.9% total company margin under adjusted operating earnings before interest, taxes, depreciation, and amortization (EBITDA); 7.1% growth in its legacy business, and 19% overall revenue growth factoring in its acquisition of Stericycle. The Stericycle deal was completed in November 2024, giving WM a play on the growing healthcare waste market, which is more specialized than general residential, commercial, or industrial waste services. The $7.2 billion deal follows up the $4.6 billion acquisition of Advanced Disposal in October 2020, which expanded the company's geographic coverage in the eastern half of the U.S. At 29.9 times forward earnings, WM is far from a cheap stock. It's actually fairly expensive. But it backs up its premium valuation with stable free cash flow that it uses to grow its dividend, repurchase stock, and reinvest in the business. The company has 22 consecutive years of raising its dividend. Despite many sizable dividend increases (the most recent being a 10% bump), the stock only yields 1.5% due to its outperforming stock price. WM's dividend is highly affordable. It costs the company about $669 million per quarter or $2.676 billion per year, but it plans to earn $2.8 billion to $2.9 billion in 2025 free cash flow. Add it all up, and WM stands out as an ultra-high-quality dividend stock that is best suited for investors not looking to maximize their passive income, but rather to collect a dividend as the cherry on top of a strong underlying growth story. With ample AI exposure, IBM is over a century old but still qualifies as a growth stock Scott Levine (International Business Machines): I know, I know: It's hard to look at a company like IBM that was incorporated in 1911 and characterize it as a growth stock, but considering its strong exposure to AI, the potential for outsize growth in the coming years is exactly something that's within the realm of possibility for Big Blue. Add to this the fact that the stock offers an attractive 2.6% forward-yielding dividend, and it emerges as a great opportunity to sit back and get paid for doing nothing while the AI market evolves. Of the many achievements that IBM celebrated when it reported second-quarter 2025 financial results recently, one of the most notable is the company's strong generative-AI book of business -- more or less a running total of active contracts and orders it has secured -- that represented $7.5 billion from its inception in 2023 to date. For another perspective on how robust its AI exposure is, consider the fact that, according to research from The Motley Fool, the company has the most generative AI patents among American companies. From watsonx, a suite of AI tools that help customers manage data, to Red Hat, which offers generative AI and predictive AI tools, IBM provides customers with a sophisticated set of AI applications that is expected to grow at a steeper rate than previously thought. As for the dividend, IBM's five-year average payout ratio of 156% may set off alarm bells for some, but after taking a breath and recognizing how the company's strong free cash flow more than covers it, investors will find their concerns assuaged. For those interested in bolstering their AI exposure with a rock-solid dividend play, IBM is a great option right now. A long-term growth story with a dividend in tow Lee Samaha (Delta Air Lines): I have two surprises for you in this section. First, Delta Air Lines pays a dividend (current yield: 1.4%), and second, it's a genuine contender for a place in the growth end of a balanced portfolio. The first point might surprise you because airlines are seen as being highly cyclical businesses whose earnings collapse in a slump (making sustaining a consistent dividend challenging). Still, the reality is that the industry is changing, and Delta's focus on growing more-sustainable premium cabin revenue, combined with its loyalty programs and remuneration from co-brand credit cards with American Express, is reducing its earnings cyclicality. The second might also be surprising because, again, Delta is traditionally seen as a cyclical stock, not a growth stock per se. That assumption remains true; however, the argument here is that the long-term trend line -- that growth oscillates about -- is heading upward for Delta for the reasons outlined above. And network operators like Delta are in a favorable position to deal with rising airport costs because they account for a smaller portion of their business compared to, say, a low-cost carrier. Furthermore, airlines are behaving in a much more disciplined manner than they historically have. It all adds up to make Delta an attractive stock for growth investors. Should you buy stock in Waste Management right now? Before you buy stock in Waste Management, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Waste Management wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 American Express is an advertising partner of Motley Fool Money. Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool recommends Delta Air Lines and Waste Management. The Motley Fool has a disclosure policy. 3 Dividend-Paying Growth Stocks to Double Up on and Buy in August was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
2 hours ago
- Yahoo
Here's the Smartest Way to Invest in the S&P 500 in August
Key Points Investors looking to gain passive exposure to the market should consider buying an ETF that follows the S&P 500. This top ETF carries an extremely low expense ratio, which results in investors keeping more of their money over time. Even near record levels, it's a smart idea to put money to work in the stock market. 10 stocks we like better than Vanguard S&P 500 ETF › The S&P 500 index has had a great run in recent memory. Since early August 2015, the benchmark has generated a total return of 261% (as of Aug. 5). Low interest rates, durable economic growth, and passive investment flows have certainly helped. Given the impressive above-average performance of the closely watched index, investors are probably thinking about how to gain exposure. Here's what I believe is the smartest way to invest in the S&P 500 in August. A look at this popular ETF One of the best ways to invest in the S&P 500 index is to add the Vanguard S&P 500 ETF (NYSEMKT: VOO) to your portfolio. This exchange-traded fund (ETF) tracks the performance of the S&P 500, which consists of 500 large and profitable companies that trade on U.S. exchanges. This investment product is offered by Vanguard, a reputable firm in the industry with a five-decade history that manages trillions of dollars in assets. It's important for investors in this ETF to understand what exactly they own. Yes, there are 500 different stocks. However, some of the biggest businesses have a higher weighting. For instance, Nvidia, Microsoft, Apple, Amazon, and Meta Platforms are the top five positions. Consequently, the information technology sector has a 33.1% weighting. So, investors in the ETF should probably be bullish on key themes shaping the economy, like artificial intelligence or cloud computing. But all 11 of the stock market's sectors are represented in the Vanguard S&P 500 ETF. This is essentially an easy method to obtain instant equity diversification in your portfolio. Investors don't need to be successful at trying to pick individual winners. They benefit from the ongoing innovation and durable growth of the American economy. Beating the pros Following the gains of the S&P 500, the Vanguard S&P 500 ETF has produced a total return of 260% in the past decade. This means that a $10,000 investment made a decade ago would be worth $36,000 today. This fantastic result translates to an annualized gain of 13.7%. What's noteworthy is that this return undoubtedly outperforms the vast majority of professional money managers. These so-called experts have a terrible track record that sees them generate performance well below the benchmark. Even better, investors who buy the Vanguard S&P 500 ETF pay an extremely low expense ratio of 0.03%. Of that hypothetical $10,000 investment, just $3 goes to Vanguard on a yearly basis. That's exactly the type of low-cost setup you should want when it comes to your investments. Buying near record highs As of Aug. 5, the Vanguard S&P 500 ETF trades just 1% below its peak. The market has held up well in 2025, an encouraging trend given the extreme level of macro uncertainty there has been with President Donald Trump's changing trade policies. Investors have largely brushed off any new tariff announcements, with optimism being present. Astute investors will rightfully wonder if now is still a good time to put money to work. Wouldn't it be better to wait for a meaningful pullback to take advantage of more attractive valuations? While this line of thinking always sounds accurate in theory, timing the market correctly is impossible to do. Investors are better off buying early and often, letting compounding work its magic over several years and decades. Despite the vote of confidence, it's still best to temper expectations. I believe the Vanguard S&P 500 ETF will continue to perform well over the long haul. However, I wouldn't be surprised if the annualized gain reverted back toward the 10% long-term average. This still makes the ETF a smart investment choice. Should you buy stock in Vanguard S&P 500 ETF right now? Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Neil Patel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Here's the Smartest Way to Invest in the S&P 500 in August was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
