Fintech Stocks Poised for Next Wave of Growth with AI Adoption

Financial technology stocks could see significant benefits from the next wave of AI adoption, which promises to be more extensive than the current focus on chatbots and basic automation.

The first phase of AI in fintech focused on customer support, fraud checks, and simple tasks, but the next phase is expected to bring a major shift with AI agents that can search for products, make choices, and complete payments on behalf of customers.

This could create millions of small digital transactions, generating new revenue streams for payment networks like Visa and Mastercard. According to a Cambridge Centre for Alternative Finance study from 2026, 81% of financial-services firms already use AI at some level, with fintech companies leading traditional institutions in advanced AI adoption.

Visa has taken steps into this area with Agent Pay for Machines, which supports payments between AI agents and machines. Mastercard also has a similar service that includes tools for identity, permission, transaction controls, and settlement. These payment networks may hold an advantage in the new market as they can provide the core infrastructure without needing to build the best AI model.

Digital lenders like Affirm could benefit from AI by improving credit decisions and profitability. A 2026 fiscal fourth-quarter report showed revenue of $1.2 billion, up 33% from the previous year, with a gross merchandise volume reaching $14.1 billion, up 36%. The company's operating margin reached 12.6%, a six-percentage-point rise.

PayPal is also competing in AI commerce but faces pressure to prove its execution and recovery plans. India may serve as a test case for agent payments with a framework planned for small UPI payments through AI agents without human approval for every transaction.