SoFi Technologies (SOFI 2.70%) and PayPal (PYPL 0.69%) are leading players in the financial technology space, each providing a unique take on this expanding market. Sofi offers customers everything from student loan refinancing to savings accounts, while PayPal continues to play a leading role in online and mobile-based payments.Both companies face increasing competition but have managed to stay ahead of it. Here’s why picking up some shares of these fintech stocks right now could be a smart move.Image source: Getty Images.Sofi continues its march forwardSoFi isn’t your typical fintech company. It started as a major player in student loan refinancing before pivoting to offer more financial services. After years of expanding its offerings, the company now provides loans, refinancing, checking and savings accounts, mortgages, credit cards, and investing services.Having its hands in so many different financial products allows SoFi to attract new customers wherever they are on their financial journey, and keep existing customers in the fold with a wealth of products.This one-stop shop for financial services has been a winning strategy. SoFi’s members, which is what it calls its customers, rose more than 9X in less than five years to its current level of more than 10 million. Strong financial results have followed, with total revenue increasing 26% in 2024 to $2.6 billion, and non-GAAP (adjusted) earnings per share rising to $0.15, up from a loss of $0.10 per share in 2023.There should be more growth ahead. SoFi’s management said that this year’s adjusted net revenue will be about $3.23 billion, at the midpoint of guidance, representing a nearly 25% increase from 2024. The company’s leadership also said it will add at least 2.8 million new members this year, an impressive 28% increase from 2024.I have to admit that SoFi’s shares aren’t exactly cheap, with a forward price-to-earnings ratio of 53.1. However, a recent pullback of SoFi’s share price over the past few weeks may have opened up a buying opportunity for investors. With the company continuing to add more members and expanding its services, starting a small position, even with shares at a premium, probably isn’t a bad idea.PayPal’s head start in online payments is still paying offPayPal has long been a dominant player in online payment processing, and its early lead has continued to benefit the company. PayPal now has 434 million active accounts worldwide, with total payment volume (TPV) across all its payment systems reaching $437.8 billion in the fourth quarter.PayPal has become an integral part of the e-commerce ecosystem, with millions of online merchants choosing PayPal’s payment system for their online payment needs, and individual users making payments to peers through the company’s Venmo payment app.As a result of PayPal’s ubiquity, the total number of payment transactions per active account increased by 3% to 60.6 in 2024. Expanding usage of its platform has also led to an increase in
