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For most of 2022, the fintech sector has underperformed the markets. The reasons are relatively straightforward: Tightening quantitative policy led by a hawkish Federal Reserve looking to rein in inflation has quelled overall risk appetite. This has led to a faster than average exit of investor capital from riskier sectors, fintech included. However, there are some long-term fintech stocks to buy

That faster-than-average exodus is evident in the dramatic declines in several fintech barometers. Global X Fintech ETF (NASDAQ:FINX) and Cathie Wood's Ark Fintech Innovation ETF (NYSEARCA:ARKF) are down 49% and 62%, respectively in 2022.

Those performances are much worse than that of the S&P 500 which has fallen about 23% during the same period. 

On the one hand, that could be taken as a warning sign to steer clear of fintech altogether. On the other hand, fintech looks increasingly attractive and deeply discounted. For those who agree with the latter, now is a great time to buy these three long-term fintech stocks. 

Bill.com (BILL)

Bill.com (NYSE:BILL) is a cloud-based software company operating in the fintech space. The company provides software targeted toward small and medium-sized businesses (SMBs) that automate financial processes. In essence, it helps to increase the efficiency of generating and streamlining invoices and approvals thus speeding up the receipt of payments. 

The numbers behind the rapidly growing firm are quite impressive. Bill.com released earnings on Aug. 18 headed by revenues that reached $200.2 million, up 156% year-over-year. 

The company gave guidance it should see revenues in the range of $208 to $211 next quarter. But don't be fooled by the relatively small sequential increase. Those revenues represent a 77% increase at the midpoint.  Bill.com also gave guidance that it anticipates 49% to 52% full fiscal year revenue growth overall. The company may be slowing slightly but it is also reaching the $1 billion revenue threshold so growth is to be expected. 

The real issue is that Bill.com posted an $84.94 million loss in the quarter. So, despite the rapid growth, rising interest rates will affect its chances of attracting investor capital. For those who play the long game, BILL stock looks very solid. 

Mastercard (MA)

Mastercard (NYSE:MA) is a solid payment stock. The company expects U.S. retail sales to be remarkably strong this holiday season with 7.1% growth. Retail spending increased 8.5% in 2021 as pent-up demand and higher savings underpinned a surge. So, the 7.1% increase expected is particularly strong following a strong 2021 and in the face of surging inflation in 2022. 

That should allay some fears of investors who were worried that consumers could tighten purse strings this holiday season. Instead, Mastercard expects more promotions with the 7.1% increase in retail spending. 

Mastercard has performed well in 2022. In the first half of 2022, sales increased 23%, from $8.7 billion to $10.7 billion. Net income increased an impressive 41% during the period, reaching $5.2 billion. In addition, credit card spending is up 13% over last year as inflation erodes current purchasing power. That bodes well for Mastercard and the fees it charges on those credit transactions. The depressed market allows savvy investors the opportunity to pick up MA stock cheaply and stash a blue-chip fintech in their portfolio. 

MercadoLibre (MELI)

MercadoLibre (NASDAQ:MELI) been described as Latin America's answer to Amazon (NASDAQ:AMZN). The comparison is generally true as both firms operate E-Commerce platforms that span vast geographies. Both firms also have substantial fintech arms. 

MercadoLibre boasted 38.2 million unique and active fintech users in its Q2 letter to shareholders. Digital account total payments value reached $9.4 billion in the second quarter. That figure represented growth of 167% on a USD basis. MercadoLibre's growing fintech business aside, it is a strong stock to consider overall. Revenues reached approximately $2.6 billion which was a 52% increase on a year-over-year basis. Fintech revenues passed the $1 billion threshold for the first time ever, growing 113%. 

MercadoLibre has a particularly strong presence in the important Latin American markets of Brazil, Argentina, and Mexico and recorded triple-digit revenue growth in Brazil and Argentina in Q2.  MELI stock is particularly attractive based on target price that suggests 57% upside and comes with strong 'buy' ratings. All in all, it might not be so hyperbolic to suggest that MELI stock is the next Amazon. 

On the date of publication, Alex Sirois 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.

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