The Zacks Analyst Blog Capital One Financial, SoFi and OppFi

Industry Overview - The global payments industry is experiencing a positive growth environment, driven by the transition to digital and electronic payment methods, with consumer spending continuing to grow [2] - The U.S. central bank has lowered interest rates three times in 2025, which supports consumer spending and improves credit conditions, potentially boosting payment volumes [3][4] - Companies in the payment industry are pursuing mergers and acquisitions to diversify their revenue streams and stabilize their top line [5] Growth Drivers - The quality of growth in the payments space is improving, with revenues increasingly driven by value-added services such as fraud prevention and data analytics [6] - Continued innovation and enhanced security in transactions are expected to benefit payment companies [7] - Real-time and account-to-account payments are gaining traction, increasing overall transaction frequency and creating a favorable backdrop for payment stocks [8] Company Highlights - Capital One Financial Corp. (COF): Expected to benefit from growing consumer loan demand, solid credit card operations, and opportunistic buyouts, with a projected earnings growth of 1.5% and revenue growth of 17.4% for 2026 [10][11][12] - OppFi Inc. (OPFI): Focus on AI and machine learning is expected to improve operating efficiency and support margin expansion, with projected earnings growth of 8.6% and revenue growth of 9.1% for 2026 [13][14] - SoFi Technologies, Inc. (SOFI): Innovation and an expanding digital financial ecosystem are expected to drive growth, with projected earnings growth of 62.9% and revenue growth of 25.4% for 2026 [15][16]