Toast and Shift4 leading decline in fintech stocks as investors abandon consumer spending-related assets

Despite general market declines, fintech companies with tight connections to consumer spending are experiencing more significant setbacks. This trend can be seen through the downturns in various fintech shares, notably Shift4, Toast, and Bill.com, as economic policies under President Trump are creating worries about consumer strength.
Fintech stocks tend to be more sensitive to market shifts than traditional banks and institutions, with many investors expressing more readiness to invest in them when market risk is low and withdrawing funds when things steer toward a more cautious mood. As a result, Barclays predicts that the higher tariff-centric policy pursued by President Trump could impact U.S. GDP negatively and potentially increase inflation in the short term, leading to a possible interest rate cut later this year.
Shift4, a company providing payment processing technology, has had a challenging year so far with a 19% decrease in its stock value after a significant drop on Thursday. This loss is nearly double when compared to the Nasdaq’s losses and more than triple that of the S&P 500. Following its earnings report, Shift4 also announced the acquisition of payments platform Global Blue for a sizable sum close to a fifth of Shift4’s overall market cap.
Meanwhile, Toast, whose payments technology is heavily utilized in restaurant and cafe settings, has seen a substantial drop of 15% this month alone, compared to the Nasdaq’s 8% decline. Despite Toast delivering results above expectations in February, the company still faced a dip in its stock value, reflecting the competitive fintech environment that emphasizes margins and growth sustainability.
Another player in the fintech space, Affirm, faced a nearly 4% decrease on Thursday, accumulating to a loss of 23% year-to-date due to heightened competition in its ‘buy now, pay later’ loan products. Bill.com, a software provider offering services related to spending and expenses for multiple small businesses, is also enduring challenges after a significant decline in its shares following a post-earnings selloff. The company has been struggling to recover since then, with shares falling another 4% on Thursday, marking a nearly 50% decline for 2025.
These instances collectively reflect how the current economic dynamics are impacting fintech stocks tied closely to consumer spending, businesses, and economic policies in the U.S. As the landscape remains competitive, fintech companies must navigate shifting market conditions to sustain growth and profitability.