Two Leading Fintech Stocks Positioned to Disrupt Traditional Finance

The financial technology revolution continues to accelerate. As traditional brokerages and payment processors face unprecedented competition, investors seeking exposure to the fintech stocks reshaping the industry have compelling opportunities. Two companies—Robinhood and Affirm—exemplify how digital innovation can capture market share from entrenched financial institutions and deliver substantial returns to early believers.

The Fintech Market Expansion: 16.2% Annual Growth Ahead

The fintech sector is experiencing a structural shift that extends far beyond current valuations. From 2025 to 2032, the global fintech market is projected to expand at a compound annual growth rate of 16.2%, according to market research from Fortune Business Insights. This acceleration reflects a fundamental consumer preference: streamlined, digital-first financial services are systematically replacing traditional banks and brokerages. The winners in this transition will be the fintech stocks that established early-mover advantages and built defensible competitive moats.

Robinhood: Capturing the Retail Investment Revolution

Robinhood transformed the investment landscape through commission-free trading, a mobile-first platform, and an intuitive user experience that appeals to retail investors historically excluded from wealth management. The company’s expansion trajectory illustrates this disruption in action.

The company doubled its funded customer base from 12.5 million in 2020 to 25.2 million by 2024, then continued accelerating to 26.8 million customers by the third quarter of 2025. What’s equally impressive: Gold subscription adoption—its premium tier offering margin trading benefits, enhanced cash yields, and advanced features for $5 monthly—surged 77% year-over-year to reach 3.9 million subscribers. These metrics signal that Robinhood isn’t merely acquiring users; it’s deepening customer engagement and monetization.

From 2024 through 2027, analyst forecasts project revenue and adjusted EBITDA growth rates of 27% and 37% respectively. This expansion is fueled by Robinhood’s evolution into a comprehensive fintech platform, incorporating banking services, wealth management solutions, and AI-powered investment capabilities. With an enterprise value of $118.2 billion, the company trades at 36 times next year’s projected adjusted EBITDA—a reasonable valuation for a growth-stage fintech stock positioned to absorb market share from traditional brokerages for years to come.

Affirm: The Buy Now, Pay Later Advantage

Affirm operates a different fintech model but captures an equally compelling market opportunity. Its “buy now, pay later” (BNPL) platform enables consumers to split purchases into installment payments without credit cards, compound interest, or hidden fees. For merchants, this creates advantages: Affirm’s fees typically undercut the 1.5%-3.5% processing fees charged by traditional credit card networks.

The economics have translated into explosive user growth. Affirm’s active consumer base nearly quadrupled from 7.1 million in fiscal 2021 to 23.0 million by fiscal 2025 (ending June 2025), with merchant partnerships expanding from 29,000 to 376,800 over the same period. Gross merchandise volume—the total value of transactions processed—climbed from $8.3 billion to $36.7 billion. Recent data shows the momentum accelerating, with active consumers reaching 24.1 million and merchants exceeding 419,000 by the first quarter of fiscal 2026.

A critical validation of Affirm’s fintech model: its 30+ day delinquency rate remained below 3%, proving the company maintains credit quality while scaling operations. The BNPL model also benefits from a counter-intuitive recession dynamic—as consumer spending power declines, shoppers increasingly turn to installment payment options rather than credit cards, insulating Affirm from macroeconomic headwinds.

Analysts forecast Affirm’s revenue and adjusted EBITDA will grow at 25% and 131% compound annual rates through fiscal 2028. Trading at $27.2 billion enterprise value—or 24 times adjusted EBITDA—this fintech stock appears undervalued relative to its profitability trajectory and the structural tailwinds benefiting BNPL adoption.

Comparative Advantage: Why These Fintech Stocks Stand Out

Both companies exemplify how fintech stocks succeed: by identifying inefficiencies in traditional finance, building superior user experiences, and scaling operations faster than legacy competitors can adapt. Robinhood captures the “how people invest” evolution; Affirm captures the “how people spend” transformation.

The historical precedent matters. When the Motley Fool analyst team recommended Netflix in December 2004, an initial $1,000 investment would have grown to over $513,000 by December 2025. Similarly, their April 2005 Nvidia recommendation turned $1,000 into $1.07 million over the same period. These cases illustrate the outsized returns possible when backing fundamental business model innovations early.

Both Robinhood and Affirm carry volatility—they are fintech stocks, after all, and subject to market sentiment swings. However, their underlying financial metrics, user growth acceleration, and positioning within trillion-dollar markets suggest the long-term opportunity substantially outweighs short-term fluctuations for patient investors.

The Path Forward

The fintech revolution is not slowing; it’s accelerating. As the global fintech market expands at 16.2% annually through 2032, the best fintech stocks will be those that combine early adoption advantages with disciplined unit economics and sustainable competitive advantages. Robinhood and Affirm represent two distinct fintech winning conditions—one in wealth management, one in consumer lending—both positioned to continue capturing market share from traditional finance. For investors seeking exposure to the fintech stocks reshaping the financial landscape, these two companies merit serious consideration as part of a long-term investment thesis.