The transition towards a digital economy has brought fintech companies to the limelight. People will always use money for products and services and this constant demand for money will ensure that the financial services industry steadily grows. Fintech companies are innovating and looking for ways to adapt to the changing consumer needs. With a global presence, they offer unique services, better financial options and resources that help them stay at the top of the industry. Investing in fintech stocks for breakout performance have the potential to reward long-term investors. 

The future is fintech and as we move towards digitisation, the demand for fintech products and services will increase. All of us have had enough of the tech stocks and if you are ready to diversify your portfolio, consider these fintech stocks for breakout performance. They have shown resilience during market uncertainty and could move higher this year. 

Visa (V)

One of my favorite fintech stocks, I have been writing about Visa Inc (NYSE:V) for a long time now. Exchanging hands for $278, the stock is up 7.5% year-to-date and up 21% in the year. The company has cracked the code to success with its business model. It manages to keep the operating costs low while ensuring steady income. 

With over 4 billion Visa cards in the world, every time you swipe a card, Visa makes money. It will charge a fee for the usage of its network and this is how steady revenue growth is achieved. The company caters to more than 100 million merchants and has a global presence.

Visa was thriving even in times of high inflation and I believe as consumer spending improves, it could see better numbers. The company reported impressive numbers in the first quarter and I believe the momentum will continue in this quarter too. It has a market cap of just $750 billion, which means there is ample upside potential. 

As we continue to use digital technology to make payments, Visa is set to benefit. It is controlling a large part of the market and has become a global name today. The company is making mega-profits and expanding internationally. In the first quarter, it saw the total transactions grow by 9% year-over-year and the cross-border transactions increased by 16%. Visa’s future is bright and it also enjoys a dividend yield of 0.75%. 

SoFi Technologies (SOFI)

Buying SoFi Technologies (NASDAQ:SOFI) below $10 is a very smart move as the stock could skyrocket in the coming months. SOFI stock is trading for $7 today and has been moving sideways since the beginning of the year. While it may take a while for the stock to rally, it will be worth the wait.

Fundamentally, SoFi has shown its strength in the recent quarterly results. It reported the first-ever GAAP profit and showed strong member growth. The fintech company ended the year with 7.5 million members and aims to add at least one million members each quarter. 

In the fourth quarter, it saw a 44% year-over-year rise in membership. We will be able to see the progress in the upcoming financial results but I believe SoFi does have the potential to change the banking industry.

It has taken a while for the company to report profit and see significant growth but now that it is here, there is a strong upside potential. In the fourth quarter, it saw a 34% rise in revenue to hit $594 million and the net income stood at $47.9 million. 

The company has been targeting a younger demographic and aims to change their banking experience. It offers everything on its app which makes it easier to invest, save, borrow and even budget. 

SoFi has the right finance and lending products which will drive growth in the coming months. The first-quarter results will be interesting to watch as it will set the track for 2024.

PayPal (PYPL)

While PayPal (NASDAQ:PYPL) hasn’t made big news recently and is falling behind other fintechs, the company has a rich history and is a high-quality fintech stock to own. PYPL stock is trading for $65 today and has dropped 13% in the year. 

I think the worst is over for the stock and we could see an improvement in the coming weeks. It is aiming for adjusted profits per share of $5.10 for the year and while it is flat year over year, it could still help the company gain ground.

Investors should not undermine the company’s potential and remember that it has over 390 million customer accounts and about 35 million merchant accounts. It also saw a 13% rise in the total payment volume which hit $1.53 trillion. 

As long as the payment volume keeps rising, PayPal will make money. Its net revenue was up 8% and even if it remains steady, we could see better days ahead. I believe buying PYPL stock in the dip is a great way to add a solid fintech company to your portfolio. 

The company is investing another $5 billion in share buybacks and has already spent $5 billion in 2023. Its widespread reach and global brand make it a strong buy in the industry. PayPal and Venmo are also taking steps to increase customer satisfaction through six new offerings launched recently. 

On the date of publication, Vandita Jadeja did not hold (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.