The US market has large companies like LendingClub and Prosper (not to be confused with the soon-to-be-listed Australian online small business lender, Prospa), but Australian tech stocks are much smaller with lower profiles. A few Australian fintechs are starting to get interesting and should be on your watchlist.

Zip Co Ltd (ASX: Z1P) provides online credit to consumers and businesses at the point of sale through the zipMoney and zipPay brands. Some of the merchants on the platform include TigerAir, Noni B Limited (ASX: NBL), Laser Clinics Australia and MyDeal. Zip also has Pocketbook, a free money management application. The share price has risen 15% in one year.

Afterpay Touch Group Ltd (ASX: APT) provides a platform that enables retail merchants to offer consumers “buy now, get now, pay later” without having to enter into a traditional loan deal. The launch in the US market by one of the largest lifestyle fashion retailers, Urban Outfitters, has been well received by the market. There is risk with a 142x price-earnings ratio and a 165% share price performance in one year, but the concept is exciting.

Money3 Corporation Limited (ASX: MNY) started out as a payday lender, which he plans to retire in the next fiscal year. The company is primarily involved in providing secured auto loans, which make up around 80% of its loan portfolio. As it leaves behind unsecured short-term payday loans, its financing costs are expected to drop, which will also benefit the bottom line as well as auto loan growth. The risks are that lending to borrowers who may not be able to get a loan elsewhere increases the risk of default. Not strictly a fintech, but the company offers loans online. Trade on a 10x PER and pay an annual dividend yield of 4%.