Affirm or SoFi: Which Fintech Growth Stock Deserves Your Money?

The Two Fintech Titans Reshaping Banking

When it comes to disrupting traditional finance, SoFi Technologies and Affirm are playing two entirely different but equally compelling games. SoFi pivoted from student loans into a comprehensive digital banking powerhouse, while Affirm revolutionized consumer lending through its “buy now, pay later” model. Both companies have captured younger, digitally-savvy consumers—but which one offers better growth potential for investors right now?

SoFi’s Expansion: From Niche Player to Digital Bank

SoFi’s transformation tells a remarkable story. What began as a student loan disruptor has morphed into a one-stop digital financial platform targeting users who’d rather never step foot in a traditional bank branch. The 2020 acquisition of Galileo, a digital payment processor now hosting nearly 160 million accounts, gave SoFi powerful infrastructure. Then came the 2022 bank charter, enabling the company to operate as a legitimate digital-only bank.

The membership numbers speak volumes. SoFi grew its user base from 2.5 million members in 2021 to 12.6 million by Q3 2025—a fivefold increase. Meanwhile, products in use skyrocketed from 1.9 million to 18.6 million over the same span. This expansion happened despite headwinds like the federal student loan payment moratorium (2020-2023) and aggressive rate hikes.

Looking ahead, the investment community projects SoFi’s revenue will expand at a 27% compound annual growth rate (CAGR) through 2027, while adjusted EBITDA could surge at 44% annually. Growth drivers include its lending platform business for third parties, growing deposit bases from expanding membership, new blockchain and cryptocurrency features, and its premium subscription tier.

Affirm’s Momentum: BNPL Enters Its Prime

Affirm’s “buy now, pay later” service operates in a different ecosystem but with equally impressive metrics. The platform lets lower-income consumers split purchases into installments without traditional credit card approval. No hidden fees, no compound interest—just transparent payments.

The numbers are staggering. From fiscal 2021 to 2025, Affirm’s active consumer base grew from 7.1 million to 23.0 million, active merchants jumped from 29,000 to 376,800, and gross merchandise volume more than quadrupled from $8.3 billion to $36.7 billion. Remarkably, Affirm achieved this expansion while weathering inflation-driven spending pullbacks and absorbing the Peloton disaster—only to emerge with partnerships featuring Amazon and Walmart.

By Q1 of fiscal 2026, the momentum continued: 24.1 million active consumers and 419,000 merchants. Delinquencies stayed below 3%, proving the business isn’t sacrificing credit quality for growth.

Analysts project Affirm’s revenue will climb at a 25% CAGR through 2028, but here’s where it gets wild: adjusted EBITDA, freshly positive in 2025, could accelerate at a 131% CAGR over the same window. The Affirm Card expansion, fintech partnerships, and European entry should sustain this trajectory.

The Valuation Question: Where Does the Value Hide?

This is where the comparison gets interesting. SoFi carries an enterprise value of $32.5 billion and trades at 31 times this year’s adjusted EBITDA. Affirm’s enterprise value sits at $27.2 billion, trading at just 24 times adjusted EBITDA.

Both companies command premium valuations relative to the broader market, but Affirm appears to confirm a more compelling risk-reward profile.

The Verdict

SoFi and Affirm both occupy attractive positions in the fintech landscape. However, when you weigh Affirm’s narrower, laser-focused business model, superior profitability growth rates, built-in resilience during economic uncertainty (lower-income consumers depend on BNPL when disposable income shrinks), and lower valuation multiples against SoFi’s sprawling platform approach, the choice becomes clearer.

For growth-focused investors who can tolerate volatility, Affirm appears to confirm itself as the more attractive entry point today.