Financial technology, or fintech, is crowded with many companies fighting for market share. It’s for a good reason. According to Fortune Business Insights, the global fintech market is worth approximately $300 billion today and will grow to more than $1.1 trillion by 2032.

The problem for investors is that because no one can reliably tell you which companies will dominate the industry a decade from now, many promising stocks in the sector have languishing stock prices because Wall Street doesn’t trust them. Instead, this creates an opportunity for substantial long-term investment returns for those who ultimately back the right companies.

These three companies are trading at incredibly low prices despite having enormous long-term potential and producing excellent business results. Let’s take a look.

1. SoFi Technologies

Digital bank and fintech company SoFi Technologies (NASDAQ: SOFI) continues to churn out strong results quarter after quarter. The company started with student loans, which has apparently helped it develop a strong appeal to young people as they mature into mainstream citizens with banking needs. SoFi surpassed 8.1 million banking customers in the first quarter, up 44% year over year.

Customers seem to appreciate SoFi’s “everything” app, which offers financial education, lending products, banking and investing services, and payments in one place. SoFi’s digital footprint completely eliminates the need for physical bank branches, and the app’s 4.8-star rating from over 340,000 reviews speaks volumes about customer satisfaction. SoFi grows with new users, but can also cross-sell different products and services to customers at no additional cost once users use the app.

SOFI Revenue Chart (TTM).

SOFI Revenue (TTM) data of YCharts

SoFi’s profits (net interest margin) began exploding after the company formally received its bank charter in 2022. The stock’s valuation via its price/book value ratio has steadily decreased over time. Now, at a more reasonable 26% premium to book value, SoFi could rise if the company’s growth continues at this torrid pace.

2. Affirm

Buy now, pay later (BNPL) emerged a few years ago as a rival to credit cards, in part because it is a more transparent method of consumer lending. To assert (NASDAQ: AFRM) is one of the main players in the sector, thanks above all to partnerships throughout the retail sector, including with Amazon, Shopifyand more than 292,000 other merchants. Affirm uses data to underwrite each transaction individually as a loan, which helps Affirm prevent customers from going into excessive debt. The company charges zero late fees, so it’s in Affirm’s best interest for customers to repay their loans promptly.

Affirm’s growth has been rapid; revenue grew 51% year-over-year in the most recent quarter. Despite competition from other BNPL companies, there are multiple reasons to like Affirm. The BNPL sector is set to grow enormously over the next decade. According to Grand View Research, BNPL will grow more than 24% annually in the US (where Affirm primarily operates) through 2030.

AFRM Revenue Chart (TTM).

AFRM Revenue (TTM) data of YCharts

Additionally, Affirm will go offline to attract additional customer transactions with the Affirm card. It gives users the dual option of spending as debt or retroactively creating installment loans at the point of sale. The card has amassed over one million users since its launch in 2021. Like many other fintech stocks, Affirm’s valuation has fallen as the company grows and its stock price falls. Investors who are optimistic about the BNPL space should view Affirm as a stand-alone innovator with the potential to grow in the near future.

3.Marqeta

Most people won’t know what Marqueta (NASDAQ: MQ) is, but the company plays a crucial role as a modern card issuer in fintech. In essence, Marqeta’s technology connects fintech applications to existing payment networks, allowing companies to create innovative payment products that otherwise wouldn’t be possible. For example, Marqeta powers payment cards Instagram gives to buyers. The technology only releases card funds when criteria are met, such as paying for the appropriate items on an order.

Marqeta collects a small portion of each transaction powered by its technology. Marqeta’s advantage is that its technology enters some of the fastest growing sectors of the financial industry, including cryptocurrency, Buy Now, Pay Later, and digital banking services. Marqeta’s payments volume grew 33% year-on-year in the first quarter, and the massive size of the payments industry means growth could continue for a long time.

MQ chart liquidity and short-term investments (quarterly).

MQ Liquidity and short-term investments (quarterly) data of YCharts

The valuation of the stock became complicated after the renewal of the contract with Marqeta To block (its largest customer) in a deal that changed how revenue was recognized. So, consider this instead. Marqeta has a market capitalization of just $2.7 billion today. The company has $1.2 billion in cash on its balance sheet, which represents 44% of its market value! In other words, Wall Street isn’t placing much value on the actual business. Time may prove this to be a mistake because innovation should continue to fuel demand for new payment solutions and Marqeta plays a vital role in this.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Justin Pope has positions in Affirm and Marqeta. The Motley Fool has positions and recommends Amazon, Block, and Shopify. The Motley Fool recommends Instacart and Marqeta. The Motley Fool has a disclosure policy.

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