Fintech stocks have been trending higher since the onset of the pandemic last year due to the widespread adoption of remote financial transactions and an increase in digital sales. However, all fintech players have not been able to ride the digital payment wave. While newly-listed Affirm Holdings (AFRM) is down nearly 37% since its debut in January, shares of 360 Finance (NASDAQ:QFIN) have surged more than 130% so far this year. So, let’s find out which one is a better buy now.The fintech (financial technology) industry is fast transforming the global financial sector with digital payment adoption accelerating since the onset of the COVID-19 pandemic. Consequently, Affirm Holdings, Inc. (AFRM) and 360 Finance, Inc. (QFIN), two of the prominent players in the fintech industry, have exploded in terms of growth with the evolution of digital payment-processing solutions.
AFRM is a payments platform that provides easy payment solutions for shoppers. Its buy-now-pay-later (BNPL) options make big purchases affordable. Customers can choose AFRM as a payment option on a partner site and then choose from a range of installment payment alternatives. The company now has partnerships with 6,500 stores, including Peloton Interactive (NASDAQ:PTON), Walmart (NYSE:WMT), Shopify (NYSE:SHOP), and Target (NYSE:TGT).
On the other hand, QFIN is a China-based data-driven and technology-empowered company that provides tailored online consumer finance products to prime, underserved borrowers through its digital platform. The company also provides standardized risk management service, in the form of SaaS modules, the incremental credit assessment, collection, and other services, as well as guarantees for defaulted loans.