2 stocks that should heat up during the summer

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Summer 2021, the second summer in a pandemic environment, has officially started. The federal government is gradually relaxing COVID-19 containment measures, as vaccine distribution increases. RBC The economy reports that Canadian household spending rebounded last month and is currently 11% above June 2019 levels.

In particular, the sectors (products and services) hardest hit during the pandemic showed the strongest growth. Meanwhile, Canadians should also be looking to invest now that the TSX continues to outperform. Mogo (TSX: MOGO) (NASDAQ: MOGO) and Rate (TSX: PAY) are the exciting growth stocks to buy today.

Fintech companies play a key role in bringing about positive and dynamic change in the business sector. The pair are bringing innovative solutions to the market, so that customers can have a seamless experience while improving their personal finances.

Sellable fintech solutions

Mogo takes finance to a new level. The $ 531.59 million company offers a variety of financial apps to empower customers and help them maintain good financial health. This tech stock has gained popularity with investors, given its 101% gain since the start of the year. Since fintech solutions are highly salable today, expect Mogo to achieve dramatic growth in the months and years to come.

With best-in-class products through a single account (Mogo app), the company advertises its platform as being uniquely designed to deliver a top-notch digital experience. In addition to accessing a digital spending account, a customer can apply for a personal or mortgage loan and buy or sell Bitcoin.

Mogo’s other value-added fintech solutions include fraud protection and free monthly credit rating monitoring. The current stock price is $ 9.71 and analysts recommend a strong buy rating for this tech stock. Mogo’s potential rise could be 65% to $ 16. If you had invested $ 10,000 at the end of 2020, your money would be worth double today.

Make your salary every day

Like Mogo, Payfare has fantastic growth potential. The investment thesis for this $ 453.10 million company is its niche game. Its leadership team is working to revolutionize the way workers, especially those in the odd-job economy, are paid. The slogan “meet every day at payday” should appeal to investors, because this fintech title could offer just that in the future.

This fintech stock is still in the hot stage after its successful TSX debut on March 19, 2021. However, from $ 6 on the first trading day, the price rose 67% to $ 10 on June 30, 2021. The mission of Payfare is simple. Gig employees enjoy instant access to earnings and cash back rewards on daily purchases through full-service digital banking apps and payment cards.

The platform offers the same fundamental services as traditional banks. A gig worker or independent contractor can transfer funds, pay bills, save money, withdraw from ATMs, and use the card for online or in-store purchases.

In addition, Payfare is developing partnerships with popular concert platforms such as Doordash, Lyft, and Uber. In the first quarter of 2021 (quarter ended March 31, 2021), revenues and the number of active users increased 46% and 168% compared to the first quarter of 2020. Payfare benefits from the resurgence of ridesharing across America .

According to Marco Margiotta, CEO and founding partner of Payfare, there is an inherent need for workers to have instant access to their income. He believes that the recent IPO along with continued product development and user acquisition will drive the growth of the company.

Great summer shopping

Mogo and Payfare are slowly making their mark in the fintech industry. Both are great buys this summer, and investors can look forward to massive returns soon.

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