Fintech stocks remain one of the most promising categories of growth stocks. As banking and other financial services continue to move from the physical to the digital realm, “old school” financial institutions face high disruption risk, from digital-first startups that are steadily gaining market share.

Yet while many fintech names have already taken off, don’t assume it’s too late to get in on the ground floor with some potential big winners from this secular growth trend. For every Block (NYSE:SQ) or PayPal (NASDAQ:PYPL), there are scores of smaller fintech firms that are still in the early stage of their high-growth phase.

Admittedly, with these smaller contenders comes a higher degree of risk. However, if you stick with the most promising fintechs out there, the potential rewards are more than enough to compensate for the risk.

So, what are some of the most promising among fintech stocks right now? Consider these seven. Each one is a rising star in its own right.

Shift4 Payments (FOUR)

Shift4 Payments (NYSE:FOUR) is a digital payment processing provider. Focused on some of the fastest-growing payment verticals, including payment processing for e-commerce and the hospitality industry, Shift4 experienced tremendous growth over the past five years. Since 2018, the company’s annual revenue has soared from $560.6 million, to $2.56 billion in 2023, and a forecasted $3.62 billion this year.

Shift4 reached consistent profitability in the process and is expected to report nearly 30% earnings growth over the next year. Yet even with this impressive growth track record, the market is not giving FOUR stock its due. Shares trade at a more-than-reasonable 19.6 times forward earnings. Admittedly, Shift4’s low valuation has much to do with a recent quarterly earnings miss.

This has called into question the company’s rate of future growth. However, while the market punished FOUR for a near-term earnings stumble, positive surprises in the coming quarters could spark a rebound. On a longer time frame, organic growth, plus the impact of acquisitions, like Shift4 Payments’ recent purchase of a majority stake in German payment processor Vectron Systems could keep the company in high-growth mode for many more years.

Lesaka Technologies (LSAK)

Lesaka Technologies (NASDAQ:LSAK) provides payment technology services, primarily in its home market of South Africa. Lesaka has made several bolt-on acquisitions of local competitors. These are helping the company, which has been unprofitable for a long time but is in a turnaround, progress towards getting out of the red.

Besides the cost and growth synergies from executing a “buy and build” strategy, there may be another long-term tailwind for LSAK stock. That would be the prospect of an improving economic landscape in South Africa. During the 2010s, the country’s economy shrank in U.S. dollar terms, and in more recent years, GDP growth has been sluggish. However, recent political changes and progress in tackling long-standing power supply issues may result in stronger economic growth.

This, in turn, could benefit both Lesaka’s operating and stock price performance. Over a longer time frame, the company could find further growth opportunities on its home continent. Via one of its recent acquisitions, it has already expanded into Kenya. Much like Jumia Technologies (NYSE:JMIA) is capitalizing on the rise of e-commerce in Africa’s emerging and frontier economies, Lesaka may be poised to do the same in the area of fintech.

Nu Holdings (NU)

Nu Holdings (NYSE:NU) is the parent company of Nubank, which, since its founding in 2013, has not only become Brazil’s largest digital bank. This fintech is now the largest digital banking platform outside of Asia, as it expands into other large Latin American markets like Mexico and Colombia. Steadily profitable, Nu’s international expansion efforts stand to lead to further earnings growth.

With NU stock currently trading for 35.6 times earnings, it may seem as if the market has already fully factored future growth into the valuation of this fintech stock. However, taking a look at sell-side earnings forecasts, NU’s forward multiple appears more than justified. Per estimates, Nu’s earnings could jump from 38 cents per share in 2024 to 79 cents per share by 2026. Some 2026 forecasts call for annual earnings nearing $1 per share.

With this, it’s easy to see that Nu Holdings has become a growth stock even Warren Buffett is bullish. Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), Buffett’s holding company, owns a 2.9% stake in Nu Holdings, worth around $1.86 billion. Other big-name investors in Nu Holdings include Softbank (OTCMKTS:SFTBY) and Tencent (OTCMKTS:TCEHY).

OppFi (OPFI)

OppFi (NYSE:OPFI) is a fintech provider of installment loans. The company generates a high level of net interest income due to the high interest rates associated with these loans. However, these loans are also extremely risky, and OppFi makes large provisions for loan losses relative to interest and fee income.

Profitability has also been swingy over the past few years. In more recent quarters, though, OppFi’s performance has materially improved. For instance, during Q1 2024, OppFi reported earnings of 10 cents per share. According to InvestorPlace Earnings, this was 5 cents per share above forecasts. Strong results have resulted in a big jump in the price of OPFI stock. Shares are up by more than 117% since last July.

Still, investor uncertainty remains high. That’s why the stock today trades for just 6.7 times forward earnings. However, there may be a path for market uncertainty to ease. If the U.S. economy continues to experience a soft landing, this may assuage concerns about a possible rise in loan losses for OppFi, driving a re-rating for the stock. Even a move to a forward multiple in the low teens could drive another doubling in price for OPFI.

PagSeguro Digital (PAGS)

Much like NU, PagSeguro Digital (NYSE:PAGS) is another Brazil-based fintech stock with strong potential to deliver multi-bagger returns in the years ahead. PagSeguro provides digital banking and payment processing services in its home market. PAGS is up by around 44% over the past year yet still sports a relatively low valuation of 11.1 times forward earnings.

Bearishness about the Brazilian economy is a big reason for this. However, in the eyes of several sell-side analysts covering PAGS stock, the market may have overestimated the impact of macro headwinds. Previously, I cited how Goldman analysts hold this view, but so too do analysts at other firms, like Evercore ISI, as seen in a March 2024 upgrade from the sell-side firm.

With expectations still set low, PagSeguro Digital could continue to deliver better-than-expected results in the quarters ahead. Shares could again level up in price for two reasons. First, PAGS could re-rate to a higher valuation. Second, as InvestorPlace’s Yiannis Zourmpanos pointed out in June, rising total payment volume (TPV) and earnings point to continued growth. Shares stand to appreciate in tandem with further increases in profitability.

Pagaya Technologies (PGY)

Pagaya Technologies (NASDAQ:PGY) operates an AI-based lending platform. Similar to a better-known name in this space, Upstart Holdings (NASDAQ:UPST), the company uses artificial intelligence in lieu of traditional loan underwriting methods.

While it took some time, Pagaya has reached profitability. The market continues to hold a skeptical view of the company. Hence, why shares in this fast-growing firm trade for just 13.4 times forward earnings. However, this works well if you decide to enter a PGY stock position today. Much points to the company continuing to grow at an above-average pace. First, as analysts at KBW recently argued, Pagaya is building strong, value-added relationships with its lending partners, suggesting further expansion opportunities ahead.

That’s not all. As InvestorPlace’s William White reported in June, the company has implemented a round of layoffs. This and other cost-efficiency efforts could help further improve Pagaya’s fiscal performance during 2025. It may be a stretch to say that PGY will one day re-hit its split-adjusted all-time high of over $300 per share, but in the long run, this $15 stock could hit price levels many times that of where shares sit today.

SoFi Technologies (SOFI)

SoFi Technologies (NASDAQ:SOFI) is one of the more widely followed fintech names. Admittedly, while commentators like myself have been extremely bullish about fintech and neobank’s long-term growth potential, after a year of mixed price performance, I can understand why skepticism about SoFi currently runs high.

Still, while it has yet to play out, SOFI stock could be in the running to become one of the multi-bagger fintech stocks. Continued high levels of user growth, coupled with an exponential increase in profitability, may ultimately send shares back up to double-digit prices. Shares may be pricey now, at a 91 times forward earnings valuation. However, given how much increases could increase thanks to factors like operating leverage, paying today for SOFI could prove worthwhile.

I’m not the only one who is bullish on SoFi’s growth going forward. As my InvestorPlace colleague David Moadel argued earlier this month, SoFi may have a strong chance of delivering strong Q2 2024 results when it reports them later this month. CEO Anthony Noto’s continued insider purchases of shares could be another indicator of better times ahead for SOFI.

On the date of publication, Thomas Niel held a LONG position in LSAK. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.