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Should you invest in these 3 ASX fintech stars?

Arguably one of the most exciting industries to invest in at present is the financial technology or fintech industry.

A good number of companies have emerged in the last few years, aiming to disrupt the lucrative financial industry.

Three fledgling companies which I believe have accomplished this are listed below. Should you invest in them today?

Afterpay Holdings Ltd (ASX: AFY)

Afterpay has shaken up the retail industry with its buy now, pay later platform. A recent update from the fintech company revealed that its platform had been so popular with both retailers and consumers that its annualised underlying sales are estimated to be greater than $1 billion. If Afterpay can stay clear of bad debts then I believe it could prove to be a fantastic long-term investment.

EML Payments Ltd (ASX: EML)

EML Payments is a fast-growing provider of prepaid card and virtual payments. Thanks to its 800 programs across North America, Europe and Australia, EML generated approximately $460 million of gross debit volume (GDV) in both March and April of this year. Based on these figures the company has an annual run rate of $5.5 billion. Furthermore, a move into the salary packaging industry is expected to boost GDV by $750 million next year. A rough estimate by management reveals that $100 million in GDV will translate to $1 million in revenue at a 90% gross margin. This is certainly a company to watch in my opinion.

XERO FPO NZX (ASX: XRO)

This provider of cloud-based accounting software for small to medium enterprises recently surpassed the one million subscriber mark. Despite this impressive statistic, I believe there is still significant room for the company to grow globally. Especially in the lucrative U.S. market where it has yet to gain a meaningful share of the market. While competition is fierce, I believe the quality of the Xero product puts it in a strong position moving forward. In my opinion Xero would be a great long-term buy and hold investment.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.