2 ASX Fintech Stocks Powering Ahead in the Digital Banking Revolution

The digital banking revolution is reshaping how people and businesses move, manage, and grow their money. As Australians increasingly shift toward contactless payments, online lending, and digital-first financial services, fintech companies are leading the charge. On the ASX, two standout players — Tyro Payments Ltd (ASX: TYR) and Change Financial Ltd (ASX: CCA) — are riding this wave with innovative platforms and strategic growth.

These two companies have become key beneficiaries of Australia’s cashless transition and the global demand for faster, smarter financial technology. Let’s take a closer look at why Tyro and Change Financial are on investors’ watchlists in 2025.

Tyro Payments Ltd (ASX: TYR): Driving the Future of SME Banking

When it comes to supporting Australia’s small and medium-sized enterprises (SMEs), Tyro Payments has emerged as a true fintech success story. Founded with a mission to simplify payments for businesses, Tyro offers integrated solutions — from electronic payment terminals and merchant cash advances to business bank accounts — designed to meet the evolving needs of industries like hospitality, retail, and healthcare.

Strong Market Position and Resilient Results

In FY2025, Tyro Payments reported revenue of $485.6 million, representing a modest 3% increase year-over-year, despite a challenging economic environment. The company’s total transaction value (TTV) remained robust at $43 billion annually, underpinned by strong merchant retention and steady growth in digital transactions.

While net profit declined 31% to $17.8 million, Tyro’s earnings per share exceeded analyst expectations by 24%, reflecting operational strength and cost discipline. Its gross margin stayed stable at 46%, demonstrating the resilience of its underlying business model.

The company’s core merchant customer base — primarily small business operators — continues to grow as digital payments become the standard. Tyro’s tailored solutions for hospitality and retail have been particularly successful, helping merchants manage payments seamlessly while accessing banking services in one platform.

Innovation and Leadership Transition

In 2025, Tyro appointed Nigel Lee, a seasoned fintech executive, as its new CEO to accelerate innovation and drive expansion into adjacent financial products. The leadership change marks the beginning of Tyro’s next growth phase, focusing on product diversification, improved user experience, and enhanced data-driven insights for its SME customers.

The company’s continued investment in banking-as-a-service (BaaS) technology is also noteworthy. By embedding financial tools directly into partner systems, Tyro is positioning itself at the heart of the digital payments ecosystem — where convenience and connectivity are king.

The Road Ahead

Looking forward, Tyro aims to further integrate its payments, banking, and lending products, creating an all-in-one digital finance solution for Australian businesses. With a solid balance sheet and a clear focus on SME-centric innovation, Tyro is well-positioned to sustain growth as digital transactions dominate the economy.

Change Financial Ltd (ASX: CCA): Simplifying Global Payments

While Tyro is revolutionizing small-business banking at home, Change Financial Ltd (ASX: CCA) is making its mark on the global payments infrastructure space. Headquartered in Brisbane, Change Financial delivers software solutions that help banks, fintechs, and merchants streamline how they issue cards, process payments, and comply with regulations.

Its products are built for scalability — enabling clients across Asia-Pacific, Latin America, and the United States to modernize their payments operations in an increasingly digital world.

Impressive Revenue Growth and Expanding Reach

In FY2025, Change Financial reported revenue growth of 44.5% to $23 million, driven by new client acquisitions and deeper penetration in existing markets. The company recorded a net loss of around $3 million, which reflects ongoing investments in product development and global expansion. However, analysts remain bullish — forecasting a return to profitability in FY2026 as scale efficiencies begin to kick in.

Cash flow improved sequentially, and recurring revenues now represent a growing share of total income, signaling a more predictable earnings base. The company’s software-as-a-service (SaaS) model is helping it expand rapidly without the heavy capital requirements typical of traditional financial firms.

Strategic Wins and Partnerships

Change Financial reached a significant milestone in 2025 by obtaining a Mastercard Principal Issuer License in New Zealand — a move that allows the company to directly issue and manage card programs for financial institutions. This achievement opens doors to a range of new clients seeking flexible, compliant, and cost-efficient payment infrastructure solutions.

Moreover, Change Financial’s partnerships with regional banks and fintechs continue to grow, with the company serving as a critical enabler for digital wallet, debit card, and prepaid program launches across emerging markets.

Future Outlook: Riding the Digital Transaction Boom

Global digital payments are projected to grow at a compound annual rate of more than 15% through 2030, and Change Financial is strategically positioned to benefit. By focusing on automation, compliance testing, and scalable software, it’s becoming an essential technology partner for businesses navigating the increasingly complex world of cross-border payments.

The company’s expertise in regulatory-compliant infrastructure gives it a competitive advantage, particularly as governments tighten digital finance rules to ensure security and transparency.

Why These Fintech Stocks Are Gaining Investor Interest

The fintech revolution is far from over — and both Tyro Payments and Change Financial stand to gain significantly as the world moves toward cashless, tech-driven finance. Here’s why these two ASX stocks are drawing investor attention:

1. Focused Market Niches

Tyro Payments specializes in serving Australian SMEs through integrated banking and payment solutions.

Change Financial targets financial institutions globally with scalable SaaS payment platforms.

2. Strong Transaction Volumes and Recurring Revenue

Both companies process billions in transactions each year, generating steady, repeat-based income streams that improve financial stability.

3. Innovation and Strategic Vision

Tyro’s move into banking-as-a-service and Change Financial’s leadership in payments compliance demonstrate forward-looking innovation.

4. Attractive Valuations and Analyst Optimism

Tyro (ASX: TYR) is praised for its resilience and stable profitability, appealing to long-term investors.

Change Financial (ASX: CCA) is viewed as a high-upside growth stock poised for a turnaround as its global reach expands.

Final Thoughts

The rise of digital banking has opened the floodgates for innovation — and companies like Tyro Payments and Change Financial are at the forefront of that transformation.

Tyro continues to solidify its position as Australia’s go-to fintech for SMEs, blending reliable payment systems with digital-first banking products. Meanwhile, Change Financial is modernizing global payment infrastructure, helping financial institutions embrace the future of frictionless, real-time transactions.

For investors, both stocks represent exciting opportunities to ride the digital finance megatrend — one that shows no signs of slowing down in 2025 and beyond.