2 ASX Fintech Stocks to Ride the Digital Banking Trend

The world of banking and payments is changing faster than ever. Cash is disappearing, transactions are increasingly online, and “embedded finance” — financial tools built right into apps and platforms — is taking over.

This shift isn’t just transforming how we pay, save, and manage money — it’s also creating a new wave of investment opportunities. For investors seeking exposure to Australia’s fintech boom, two companies stand out: Tyro Payments Ltd (ASX: TYR) and Change Financial Ltd (ASX: CCA).

Both are smaller-cap fintechs, not the giant banks that dominate the ASX. That means they carry higher risk, but also the kind of growth potential that only digital disruption can deliver. Let’s explore what makes each one special and why they’re worth keeping on your radar.

1. Tyro Payments Ltd (ASX: TYR) — Powering SME Banking and Merchant Payments

What Tyro Does

Tyro Payments is one of Australia’s few fintechs to hold a full banking license (an ADI — Authorised Deposit-taking Institution). It focuses on small and medium-sized enterprises (SMEs) — a market segment that’s often underserved by the big banks.

The company offers payment terminals, merchant acquiring, business banking, and embedded finance solutions that help small businesses simplify how they get paid, manage their funds, and access capital. Tyro’s goal is to become the go-to “next-generation bank” for Australia’s SMEs.

Latest Financial Snapshot (FY25)

For the financial year ended 30 June 2025:

1. Revenue: $485.6 million, up 2.98% year-on-year
2. Operating cash flow: $145.81 million, up 199% YoY
3. Management highlighted growth in transaction value, a broader merchant base, and strong cost control as key FY25 achievements.

Despite operating in a highly competitive space, Tyro continues to grow both its transaction volumes and merchant relationships — a sign that its model is resonating with small businesses looking for flexible digital banking solutions.

Why Tyro Is Riding the Digital Banking Trend

The momentum behind Tyro isn’t hard to understand: SMEs are embracing digital payments and integrated banking faster than ever. Traditional banks have struggled to cater to their unique needs — but Tyro was built precisely for that gap.

Here’s what makes it exciting:

1. SME digitization boom: As small businesses move online, Tyro’s mix of payments, lending, and banking fits perfectly into the shift.
2. Beyond payments: Tyro isn’t just processing transactions — it’s evolving into a full-service SME bank.
3. Investing for growth: By not paying a dividend yet, Tyro signals that it’s focused on expansion rather than short-term returns.

With the global fintech market expected to grow at a CAGR of more than 15% over the next five years, Tyro’s positioning gives it a strong tailwind.

Risks and What to Watch

Of course, investors need to stay realistic. Tyro’s FY25 revenue growth of just under 3% is modest, and competition from both established banks and nimble fintechs is fierce. Building and scaling banking services brings heavy regulatory compliance and technology costs, so maintaining profitability will be a balancing act.

Verdict on Tyro

Tyro offers one of the most tangible fintech stories on the ASX — it’s already profitable, has a loyal SME customer base, and a clear strategy to expand its banking ecosystem.

For investors who believe that SME banking and embedded finance will continue to scale across Australia, Tyro is worth serious consideration. It’s not a dividend play — it’s a growth play. And for patient investors, that could be exactly what pays off over time.

2. Change Financial Ltd (ASX: CCA) — Global Payments-as-a-Service (PaaS) Innovator

What Change Financial Does

Change Financial is a global fintech based in Australia but operating across multiple regions. Its flagship product, Vertexon, delivers Payments-as-a-Service (PaaS) — a model where clients can use Change’s technology to run card programs, digital wallets, and payment systems without having to build everything themselves.

Essentially, Change Financial builds the “infrastructure” for other fintechs and banks to operate smoothly — a high-tech backbone for modern payments.

Latest Financial Snapshot (FY25)

For FY25, the company reported:

1. Revenue: $23 million, up 44.5% YoY
2. Operating cash flow: $1.23 million
3. EBITDA: Small but positive for the first time

These numbers show a company in rapid transition — from a developmental fintech to one with a scalable, recurring revenue model.

Why Change Financial Is Riding the Trend

Change Financial sits at the intersection of several massive global trends: digital payments, borderless finance, and embedded banking.

Here’s why that matters:

1. Global scalability: Vertexon’s API-driven model lets banks and fintechs launch payment solutions quickly across markets.
2. Recurring revenue model: The shift to PaaS means more stable income, higher margins, and predictable cash flow — critical for long-term sustainability.
3. High leverage to fintech growth: As one of the smaller players on the ASX, Change Financial offers significant upside if it continues to execute.

The company’s focus on recurring revenue and platform expansion also positions it to benefit from the global move towards “banking-as-a-service” and “payments infrastructure” — two of the hottest subsectors in fintech right now.

Risks and What to Watch

Change Financial is still in the early stages of scaling up. It needs to keep expanding its client base, ensuring platform reliability, and managing competition from larger, better-funded players. Operating across multiple jurisdictions also brings currency and regulatory risks, so execution discipline is key.

Investors should also remember that while its growth potential is large, its small market cap means its share price can be more volatile — both up and down.

Verdict on Change Financial

Change Financial represents a high-risk, high-reward way to invest in the global fintech revolution. It’s still early, but the growth in its Vertexon platform and its first positive EBITDA are encouraging signs of maturity.

For investors who believe the future of payments lies in platform-based, global, API-driven systems, Change Financial is an intriguing “satellite” holding — not the core of a portfolio, but one that could deliver strong returns if the company continues to scale successfully.

Final Thoughts

Digital banking isn’t just a trend — it’s the new normal. From SMEs embracing integrated financial tools to global platforms powering payments behind the scenes, fintech is reshaping the financial landscape.

1. Tyro Payments (ASX: TYR) offers exposure to Australia’s SME digital banking boom — a strong domestic play with visible traction.
2. Change Financial (ASX: CCA) provides a gateway to the global PaaS revolution — riskier, but with potentially higher returns.

Both companies highlight different sides of the same transformation: the move toward smarter, faster, more connected finance.

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