In today’s fast-moving digital economy, traditional payment methods are increasingly seen as slow, fragmented and inefficient. Consumers and businesses are gravitating toward payment solutions that are instant, mobile-first and seamlessly embedded into everyday transactions. As a result, digital payments have moved well beyond niche adoption to become the backbone of modern commerce.

The global payment landscape is being reshaped by the rapid rise of alternative payment methods, driven by digitalization, technological innovation, regulatory evolution and changing consumer expectations. Account-to-account and real-time payments, open-banking frameworks, digital wallets, Buy Now, Pay Later (“BNPL”) services and cryptocurrencies are redefining how money moves across the economy, enabling faster settlement, greater convenience and improved access.

Per a Grand View Research report, the global digital payment market was valued at nearly $114.4 billion in 2024 and is projected to reach $361.3 billion by 2030, reflecting a robust 21.4% CAGR from 2025 to 2030. This rapid expansion is accelerating the decline of cash and checks, as real-time and digital payment rails account for an increasing share of transaction volume worldwide.

Fintech innovators, including SoFi Technologies, Inc. (SOFI Quick QuoteSOFI - Free Report) , Block, Inc. (XYZ Quick QuoteXYZ - Free Report) and Circle Internet Group (CRCL Quick QuoteCRCL - Free Report) , are at the center of this transformation. By delivering intuitive, mobile-centric platforms for consumers and scalable payment infrastructure for merchants, these companies are driving higher transaction volumes, stronger user engagement and recurring revenue streams.

Looking ahead to 2026 and beyond, digital wallets are expected to capture a larger share of global commerce, while payment revenues continue to rise. Fintechs positioned across payment rails, wallet ecosystems and real-time settlement are well-positioned to gain from the ongoing shift toward a cashless economy.

SoFi: Digital Banking & Neobank Innovator

San Francisco-based SoFi is a member-centric one-stop shop for financial services that enable members to borrow, save, spend, invest and safeguard their money. The company’s mission is to help its members achieve financial independence and realize their ambitions.

Digitalization in financial services presents a strong growth opportunity for SoFi. With its focus on online banking and a broad product ecosystem, the company is well-positioned to benefit from rising demand for digital financial platforms. Its technology arm, Galileo, is gaining traction among other financial institutions, strengthening SoFi’s competitive edge. As building proprietary platforms is costly, many smaller banks may prefer licensing interoperable solutions like Galileo, positioning SoFi as a key beneficiary even as traditional banks expand their digital offerings.

Lower interest rates provide a favorable environment for SoFi’s lending business, encouraging customer growth through competitive loan and refinancing options. The company’s focus on innovation, including new product launches and strategic partnerships, bolsters its reputation as a forward-thinking competitor to traditional banks. 

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Nonetheless, heavy reliance on the personal loan segment, which constitutes almost 70% of SOFI’s lending portfolio, a weak liquidity profile and a lack of dividends deter risk-averse investors seeking stability and consistent income. 

However, as demand for digital payments keeps rising, SOFI is set to benefit from the trend. The Zacks Consensus Estimate for earnings suggests a 140% and 62.9% year-over-year jump for 2025 and 2026, respectively. The company’s shares have soared 78.9% in the past six months. SoFi carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Block: Payments Innovator

Incorporated in San Francisco in 2009, Block does not designate a headquarters location as it adopted a distributed work model in 2021. The company delivers comprehensive solutions across payments, commerce, banking, investing and lending. It is also rapidly expanding its partner base to scale its distribution network. 

Square, the part of Block that serves merchants, continues to perform well. Its steady growth in gross payment volume (GPV) and gross profit shows strong business momentum. The company is also rolling out new capabilities, like Square AI, which provides data-driven insights to help sellers manage and grow their businesses in an increasingly competitive point-of-sale (POS) and software landscape. In the U.K., Square launched its Cash Advance program to help businesses access funds and further introduced a new portable POS device called Square Handheld.

Block’s growth is driven by Cash App, which has evolved from a simple payment tool into an all-in-one financial platform popular with younger users. It now offers payments, banking, commerce and Bitcoin services. The company has expanded Cash App with features like group payments, buy-now-pay-later via Afterpay, improved borrowing tools and Tap to Pay on iPhone, helping boost user engagement and business adoption.

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However, economic uncertainty and higher tariffs could weigh on small merchants, reducing transaction volumes and new signups for Block. Intense competition and rapid technological change also pose risks, requiring continuous investment in products and services that may pressure this Zacks Rank #3 (Hold) company’s margins and earnings growth.

Hence, the Zacks Consensus Estimate for XYZ’s 2025 earnings implies a 28.2% year-over-year decline. Earnings are expected to rebound and surge 40.3% next year. Because of near-term concerns, shares of the company have rallied just 1.1% in the past six months.

Circle: Crypto & Digital Asset Platform

Headquartered in New York, Circle operates as a platform, network, and market infrastructure for stablecoin and blockchain applications. This newly listed firm is best known for issuing USDC, a leading U.S. dollar-backed stablecoin. Unlike crypto miners or Bitcoin-treasury firms, the company’s exposure is utility-driven, anchored in payments, trading and on-chain financial infrastructure.

CRCL benefits from strong network effects built on trust, transparency and compliance. USDC is fully backed by short-term U.S. Treasuries held in cash and through the Circle Reserve Fund, where reserves are segregated for the benefit of holders. On-chain activity has been rising meaningfully, reflecting deepening adoption across payments, DeFi and capital markets. Strategic partnerships with Visa, Deutsche Börse, Kraken, Finastra, Fireblocks and Itaú further expand global distribution.

Circle’s growth is being supported by newer products. The Circle Payments Network is gaining traction, with annualized transaction volume reaching $3.4 billion. Arc, the company’s Layer-1 blockchain, is now in public test net and already has more than 100 institutional participants. The company is also considering launching a native Arc token, which could expand the ecosystem and create additional long-term upside.

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Nonetheless, Circle’s profitability is influenced by interest rates (via reserve income), regulatory changes and competition from other stablecoins and yield-bearing products. Further, distribution costs tied to partners like Coinbase weigh on margins.

While the Zacks Consensus Estimate for Circle indicates a loss of 87 cents per share this year, earnings are projected to surge 205.3% in 2026 to 92 cents per share. Since its debut on the NYSE on June 17, shares have tanked 49.4%. The company carries a Zacks Rank #3.