When thinking about sectors that have a chance to roar back in 2023, financial technology (fintech) may not be the first to come to mind. Still, this may be a time to look for value in these cheap fintech stocks.

For one, many of these fintech stocks are now oversold. That means they’re well positioned to increase in value based on any good news in the economy. Two, many fintech companies are tapping into markets such as microfinance and “buy now pay later.”  These are helping the non-banked or the underbanked have the financial flexibility they need. Three, these are also companies that are plugged into Gen-Z, a key demographic that has grown up with a disregard for traditional banking and a preference for mobile and digital solutions.

That being said, if you have room to take on risk in your portfolio, here are seven cheap fintech stocks to buy while they’re still attractively priced.

Upstart Holdings (UPST)

Upstart Holdings (NASDAQ:UPST) had a disastrous earnings report in Nov. following a prior poor report. Revenue is down. In addition, the company went from being profitable to posting negative earnings in its last two quarters. That may make it an odd candidate to lead off this list of cheap fintech stocks. Nevertheless, UPST stock is down 88% in the last 12 months and it may be time for opportunistic investors to jump in.

The reason is simple enough. Inflation is causing many consumers to rely on credit to make ends meet. And with only 48% of Americans having access to prime credit, Upstart fills an important niche.

Upstart is a peer-to-peer lending platform that’s leveraging artificial intelligence (AI) and machine learning to determine an applicant’s creditworthiness.  With interest rates rising, the company may not be able to qualify as many applicants. However, those that do qualify are less likely to default.

In the short term, the bears are in control and short interest is high. However, Upstart is expected to grow both revenue and earnings at a double-digit rate over the next five years. If nothing else, Upstart is a watchlist candidate.

Toast (TOST)

Toast (NYSE:TOST) provides hardware and software point-of-sale solutions that are targeted at the restaurant industry. That makes it a strong candidate for growth in 2023. At the onset of the pandemic, it was cheaper for consumers to eat at home. Now, things are starting to change for the better for restaurants.

In fact, revenue is now growing both sequentially and year-over-year. In the company’s Nov. earnings report, Toast said revenue grew 55% year over year. Also, while the company is not yet profitable, it’s expected to turn a profit in 2024. And as I wrote back in Dec., at least one analyst believes Toast may become profitable on an adjusted EBITDA basis sometime in 2023.

TOST stock went public in 2021. It’s down over 67% since that time and it was down approximately 38% in 2022. With the company continuing to add locations on a regular basis, this may be a compelling time to put Toast on your list of cheap fintech stocks.

Affirm (AFRM)

As inflation soared in 2021 and 2022, the “buy now, pay later” movement took hold of the economy, with Affirm (NASDAQ:AFRM) as one of the leaders. Helping, the company started a partnership with Amazon (NASDAQ:AMZN) in 2021. This gave Amazon a presence in the “buy now, pay later” market. Affirm also has a relationship with Walmart (NYSE:WMT), a  company that continues to compete effectively with Amazon.

However, the BNPL model is drawing scrutiny as many financial professionals and consumer advocates are warning of the pitfalls involved with extending payments, particularly the risk of overspending. Nevertheless, prior to the holidays, many analysts were suggesting this past season could see a spike in BNPL activity. If that came to fruition, it may be reflected in Affirm’s earnings which the company will deliver in early Feb.

Fiserv (FISV)

Fiserv (NASDAQ:FISV) provides the infrastructure for other companies to facilitate digital payments and account processing in a variety of forms. The company has over 1.4 billion global accounts that include over 10,000 financial institutions.

Unlike other fintech stocks, Fiserv is only down 7.8% in the last 12 months. Investors will learn more about this when the company reports its fourth-quarter (and full-year) earnings next month. The good news is the company is projected to deliver an average of mid-teens earnings growth in the next five years.

SoFi Technologies (SOFI)

There’s no shortage of opinions regarding SoFi Technologies (NASDAQ:SOFI). While most of it is negative thanks to the Biden Administration’s student loan moratorium, I take comfort in knowing that issue won’t last forever. Also, it’s not like the company is losing customers. Revenue was up over 60% in the last 12 months. Sure, the company may not be profitable just yet. However, at about $5 a share, it’s safe to say most of the bad news appears to be priced in.

Bread Financial (BFH)

Bread Financial (NYSE:BFH) takes a digital-first approach that powers business-to-consumer and direct-to-consumer solutions that help “bring ease, empowerment and financial flexibility”. As the company’s latest earnings presentation shows, it continues to onboard new customers and retain its existing customers.

It’s likely that these solutions will be in high demand as consumers continue to balance inflation, rising interest rates, and inflation. And right now, it appears the company’s balance sheet is strong enough to protect against the possibility of rising delinquencies in 2023.

Unlike many of the companies on this list of cheap fintech stocks, Bread Financial is profitable and it even managed to pay a small dividend in 2022. Investors can expect more information when the company reports earnings on Jan. 26.

Bill.com (BILL)

Last on this list of cheap fintech stocks is Bill.com (NYSE:BILL). The software-as-a-service (SaaS) company provides the infrastructure in the form of cloud-based software for small and midsize businesses. This allows these businesses to “make paper-based manual transaction processing obsolete.”

The company estimates that 90% of U.S. businesses still use paper checks and other manual processes. If, as expected, unemployment increases in 2023 that will be bullish for a company like Bill.com which will make some of those positions redundant.

Like many companies on this list, Bill.com presents a similar financial picture. Revenue continues to grow on a sequential and year-over-year basis. But the company is not yet profitable and it may be some time before it is. Still, revenue and earnings are expected to grow sharply in the next five years. And analysts give the stock a price target of over $185 which would be an 85% gain from the current level.

On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.