In the past decade, online shopping, quick money transfer and cross-border transactions helped the fintech boom. However, the pandemic drove the digital payment space, majorly pushing toward a cashless society. From small grocers to delicatessen (or deli) and gas stations, the tap-and-pay megatrend has driven fintech stocks higher.In the early days of the pandemic, a PaymentsJournal survey showed that 51% of American shoppers begun using mobile/digital wallets and other tap-to-go credit/debit card facilities. The survey also showed that the rest were likely to adopt digital payment modes as the pandemic has threatened cash transactions. QR codes usage gained traction in several mature markets, the United States included. Big retailers like CVS, 7-Eleven, Whole Foods, Starbucks & Target are accepting QR code-based transactions. Most importantly, these codes offer a low-cost merchant acceptance platform that has helped small-scale retailers immensely. Additionally, it helps in identifying untaxed sellers.The global financial technology (fintech) market is expected to rise to an approximate market value of $324 billion by 2026, at a CAGR of 23.4%, per a Market Data Forecast report. Specifically, per a MarketsAndMarkets report, the global contactless payment market size is expected to rise from $10.3 billion in 2020 to $18.0 billion by 2025, at a CAGR of 11.7%. And ease of use, low deployment cost and mobility will be the key benefits boosting growth and adoption.The canopy of fintech has several other elements like cryptocurrency, online and mobile banking, online and peer-to-peer lending, person-to-person payments, financial software and services. But digital payment is one of the most attractive new normal trends that customers have adopted and will continue to use even in the future. Better authentication controls, centralized clearance, and networks will make payment technologies inexpensive and lead to mass acceptance of this fast-growing payment technology.Deals Boosting the Fintech SpaceMergers, acquisitions and funding continue to support the fintech space. Recently, Square, Inc. SQ reached a deal to acquire “buy now, pay later” provider Afterpay, based in Australia, for a $29 billion all-stock deal. Afterpay allows retailers to provide the option of paying for products in four installments without interest if customers are paying on time. The acquisition that was announced on Aug 2 and is expected to be completed in the first quarter of 2022 and pose tough competition to rival PayPal’s Venmo.The digital payment space in the global market is also growing fast. Recently, Indian Digital payments giant, Paytm, filled for an initial public offering, planning to raise up to $2.2 billion. The firm is already backed by Ant Financial, Berkshire Hathaway, SoftBank and others and provides tough competition to Google Pay in India.5 Stocks to WatchThe emergence of online/digital wallets and chip-based card readers (enabling tap-and-pay services) has helped people go cashless and even the existing credit and debit cards are using technology to provide faster and more reliable services for everyday use. Given such positives, we have shortlisted five fintech stocks that investors should watch.Global Payments Inc. GPN provides payment technology and software solutions for card, electronic, check, and digital-based payments. The company reported second-quarter 2021 earnings on Aug 2, of $2.04 per share, compared with $1.31 in the same quarter last year.The company's expected earnings growth rate for the current year is 27.5% compared with the Zacks Financial Transaction Services industry’s projected earnings growth of 24%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.8% upward over the past 60 days. Global Payments currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shift4 Payments, Inc. FOUR provides integrated payment processing and technology solutions. The company announced second-quarter 2021 earnings of 22 cents and raised its annual guidance to $175-$180 million. This Zacks Rank #2 company's expected earnings growth rate for the current year is more than 100% compared with the Zacks Financial Transaction Services industry’s projected earnings growth of 24%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 60% upward over the past 60 days.The Western Union Company WU provides money movement and payment services. The company announced second-quarter 2021 earnings of 48 cents per share, beating the Zacks Consensus Estimate by 2.13%. It reiterated its 2021 financial outlook for revenue growth and its remaining metrics on an adjusted basis. The company belonging to the Zacks Financial Transaction Services industry has a projected earnings growth rate of 11.2%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised nearly 1% upward over the past 60 days. Western Union currently holds a Zacks Rank #2.PayPal Holdings, Inc. PYPL operates as a technology platform and digital payments company. The company announced $1.15 per share in second-quarter 2021 earnings, surpassing the Zacks Consensus Estimate by 1.8%. The company's expected earnings growth rate for the current year is 21.9% compared with the Zacks Internet - Software industry’s projected earnings growth of 2.8%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 4.1% upward over the past 60 days. PayPal currently carries a Zacks Rank #3 (Hold).Square creates tools that enable sellers to accept card payments; also provides reporting and analytics, and next-day settlement. This Zacks Rank #3 company's expected earnings growth rate for the current year is more than 100% compared with the Zacks Internet - Software industry’s projected earnings growth of 2.8%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 18.7% upward over the past 60 days. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Western Union Company (WU): Free Stock Analysis Report Global Payments Inc. (GPN): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Square, Inc. (SQ): Free Stock Analysis Report Shift4 Payments, Inc. (FOUR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research