2 ASX Fintech Stocks to Ride the Digital Banking Trend

The digital banking revolution is reshaping how money moves — from how consumers make payments to how businesses manage cash flow. As more Australians shift toward contactless payments, online banking, and real-time transactions, fintech companies are emerging as the true enablers of this transformation.

Among them, two ASX-listed names — Tyro Payments Ltd (ASX: TYR) and Change Financial Ltd (ASX: CCA) — stand out as promising opportunities for investors seeking to ride the wave of financial innovation. Both are leveraging technology to simplify banking, improve accessibility, and redefine customer experience in a way that traditional banks are struggling to match.

Let’s explore how these two fintech leaders are shaping the future of digital banking — and why their stocks are worth watching in 2025 and beyond.

1. Tyro Payments Ltd (ASX: TYR): Empowering SMBs with Next-Gen Banking

Tyro Payments has carved a strong niche by focusing on one of Australia’s most vital economic segments — small and medium-sized businesses (SMBs). With SMBs making up nearly 97% of all Australian businesses and employing almost half the national workforce, Tyro’s target market is massive and growing.

The company specializes in providing electronic payment infrastructure that’s tailored to meet the unique needs of small enterprises. Its latest innovation, the Tyro Transaction Account (TTA) — launched in 2025 — is a testament to this focus on business-friendly digital banking.

The TTA offers:

1. No monthly fees or minimum balance requirements
2. Same-day EFTPOS settlements seven days a week
3. Real-time payments through PayID, PayTo, and Osko
4. Instant cash flow tracking via Tyro’s mobile app

For small business owners often frustrated by banking delays and fees, Tyro’s solution is a game-changer — offering speed, transparency, and flexibility all in one place.

Strong Financial Growth Amid Market Challenges

Financially, Tyro continues to demonstrate steady growth despite broader economic headwinds. In FY25, the company reported revenue of $485.61 million, reflecting solid customer engagement and transaction activity.

Additionally, Tyro’s active banking accounts jumped 43% year-over-year, reaching nearly 11,000 accounts, while lending originations climbed 15%. This growth highlights the company’s expanding footprint in small business financing — a critical pain point for many SMBs that struggle with traditional lending processes.

To further enhance its service quality, Tyro has integrated artificial intelligence (AI) into customer support systems, significantly cutting response and resolution times. This technology-driven approach not only improves user experience but also reduces operational costs — a win-win for both customers and shareholders.

Strategic Expansion into New Sectors

Historically strong in retail and hospitality, Tyro is now targeting emerging verticals such as pet care, aged care, and healthcare, broadening its addressable market. These industries, many of which are still early in digital adoption, present lucrative opportunities for Tyro’s tailored payment and banking platforms.

While slower consumer spending has affected transaction volumes in certain sectors, Tyro’s diversification strategy and focus on digital innovation have positioned it for sustainable medium-term growth.

2. Change Financial Ltd (ASX: CCA): Innovating Payments-as-a-Service

While Tyro focuses on merchants and small businesses, Change Financial is transforming how financial institutions deliver digital banking experiences. As a global fintech headquartered in Australia, Change operates in the Payments-as-a-Service (PaaS) and card issuing space — helping non-bank lenders, fintechs, and mutuals offer modern financial products without the heavy cost burden of traditional banking infrastructure.

At the heart of its offering lies the Vertexon platform — an advanced solution that enables clients to manage digital banking, payments, lending, and card issuance seamlessly.

Recently, Change launched a new API sandbox in New Zealand, allowing fintech startups to test and develop digital card products affordably and efficiently. This move not only accelerates innovation but also fosters inclusivity — giving smaller players the tools to compete with big banks in delivering premium digital services.

Solid Financial Performance and Growth Outlook

Change Financial’s financial performance reinforces its growth trajectory. For FY25, the company posted $23 million in revenue, a 44% year-over-year increase — surpassing its own guidance. This growth was driven by rising demand for its Vertexon platform and expanding partnerships across Australia and New Zealand.

Looking ahead, the company’s FY26 revenue guidance projects between $16.5 million and $18 million, reflecting continued adoption of its technology despite macroeconomic uncertainties. While the guidance may appear conservative, Change’s diversified client base and scalable service model position it well for long-term expansion.

Building Partnerships for Market Penetration

Change Financial has been steadily expanding its network through partnerships with core banking providers and credit unions, helping them modernize digital infrastructure and enhance customer experience.

By empowering financial institutions with flexible and compliant digital solutions, Change is becoming an indispensable technology partner in a sector undergoing rapid transformation. The growing demand for embedded finance and digital card services makes its platform increasingly relevant — not only in Australasia but also in global markets.

3. Why These Fintech Stocks Capture the Digital Banking Trend

Both Tyro Payments and Change Financial are ideally positioned to ride the accelerating digital banking wave in Australia and beyond. The financial landscape is changing rapidly, and these companies are providing the tools and infrastructure to support that shift.

Here’s why investors should keep a close eye on them:

1. Rising Digital Demand: Both firms cater to the growing appetite for fast, affordable, and secure digital financial services that traditional banks struggle to deliver efficiently.
2. Focused Market Segments: Tyro’s deep focus on SMBs taps into a massive and under-served market, while Change Financial empowers fintechs and non-bank lenders to compete with major banks.
3. Technological Edge: Their emphasis on innovation — from AI-driven customer service at Tyro to API-enabled testing environments at Change — highlights adaptability in a fast-changing sector.
4. Strong Financial Growth: Tyro’s $485.61 million revenue base and Change Financial’s 44% year-over-year growth demonstrate operational execution and scalability.
5. Strategic Partnerships: Both companies are expanding through collaborations that enhance visibility and market share.

4. The Bottom Line

The digital banking transformation is not a passing phase — it’s the future of finance. From tap-and-go payments to instant business settlements, fintech innovation is defining how individuals and companies interact with money.

Tyro Payments Ltd (ASX: TYR) and Change Financial Ltd (ASX: CCA) stand out as two of the most promising fintech plays on the ASX, each with a clear strategy, innovative product lineup, and growing market presence.

Tyro’s focus on empowering small businesses with intuitive banking tools and Change Financial’s mission to democratize digital payment infrastructure position them as key beneficiaries of the global shift toward digital-first finance.

For investors looking to capitalize on the digital banking boom, these two ASX fintech stocks offer not just exposure to a growing market — but also a glimpse into the future of how banking will work in a connected, cashless world.

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