Forget Zip shares, I'd buy this fintech stock instead

I think this fintech share offers good potential this year.

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Zip Co Ltd (ASX: ZIP) shares delivered explosive growth throughout August to October last year, reaching a four-year peak before crashing 40% in November.

Over the past 52 weeks, the Australian financial technology company's shares have zig-zagged anywhere between $1.08 and $4.93 a piece. At the time of writing, Zip shares are down 5.78% for the day, at $2.61 a piece. That means the share price is already down 22.09% for the year to date.

Zip has posted strong financial results over the past few quarters, and the business has robust growth plans for 2026. 

The fintech company is expected to post its FY26 half-year results in February, at which point investors will find out if the company is still on track. Good news could push the share price higher over a short period of time. But, with a business model closely tied to high credit risk and volatile consumer spending, volatility and unpredictability could well continue throughout 2026.

Here's another lesser-known ASX fintech share that I think could be an interesting buy for investors right now.

I'd buy Humm Group Ltd (ASX: HUM) shares instead

Humm shares are 1.33% higher at 76 cents per share at the time of writing on Wednesday afternoon. For the year to date, the shares have climbed 5.56% and they're now 26.67% higher over the year.

The Australian fintech business is a diversified finance provider that offers buy now, pay later (BNPL) products, credit cards, and finance to small to medium-sized businesses.

The business has been in the spotlight recently after fielding a takeover from Credit Corp Group Ltd (ASX: CCP). The company said Credit Corp was offering 77 cents in cash per Humm Group share, but if that offer was unsuccessful, Credit Corp would then launch an off-market takeover at 72 cents per share, "conditional upon Credit Corp achieving acceptances for 50.1% of Humm Group's shares". The bid is only a proposal at this stage.

It looks like investors are on the edge of their seats waiting to see what'll happen next.

What do analysts think of the stock?

It looks like analysts are very bullish on Humm shares over the next 12 months. TradingView data shows an analyst consensus for a strong buy rating. The maximum upside is tipped to be 87 cents this year, which implies a potential 15.23% upside at the time of writing.

Unlike the headwinds facing Zip shares right now, it looks like Humm could enjoy some decent tailwinds this year.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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