TLDR: Global fintech investment reached $44.7 billion across 2,216 deals in the first half of 2025, marking the lowest six-month period since H1 2020. Despite a general slowdown, digital assets and AI-enabled fintechs emerged as strong performers, attracting $8.4 billion and $7.2 billion respectively. This strategic investment focus comes amidst ongoing geopolitical tensions and economic uncertainties, as highlighted by KPMG’s ‘Pulse of Fintech H1’25’ report.
The global fintech sector recorded a total investment of $44.7 billion across 2,216 deals in the first half of 2025, according to the latest ‘Pulse of Fintech H1’25’ report by KPMG. This figure represents the softest six-month period for fintech investment since the first half of 2020, reflecting a cautious investment climate influenced by geopolitical tensions and evolving trade policies.
Despite the overall slowdown, certain sectors within fintech demonstrated remarkable resilience and attracted significant capital. Digital assets proved to be particularly hot, drawing $8.4 billion in investment by the end of H1 2025, already surpassing a substantial portion of the $10.7 billion invested throughout all of 2024. This surge indicates a strong investor interest in stablecoins and their applications in trading, remittances, and payments in emerging markets.
AI-enabled fintechs also experienced robust interest, securing $7.2 billion in investment during H1 2025, compared to $8.9 billion for the entirety of 2024. Experts anticipate that fintech-focused AI will continue to be a major investment area in the latter half of 2025, with a focus on scalable and horizontally-focused product offerings from startups.
In contrast, the payments sector, historically the largest driver of fintech investment, saw a significant decline. It attracted only $4.6 billion globally in H1 2025, a sharp drop from $30 billion in 2024, as investors shied away from large consolidation-type M&A deals. M&A deal value across the fintech sector fell from $26.7 billion in H2 2024 to $19.9 billion in H1 2025, and private equity investment decreased from $4.4 billion to $1.4 billion. However, venture capital investment remained steady, marginally increasing from $23 billion to $23.4 billion.
Regionally, the Americas led in fintech investment, attracting $26.7 billion across 1,092 deals. Notable deals in the Americas included the $2.6 billion acquisition of US-based Next Insurance by Ergo Group and a $2 billion VC raise by Cayman Islands-based Binance. The EMEA region followed with $13.7 billion, including the year’s largest fintech deal: the $3.2 billion buyout of UK-based Preqin by BlackRock. The ASPAC region recorded the softest investment levels, with $4.2 billion across 363 deals, down from $7.3 billion in H2 2024.
Auguste Claude Nguetsop, partner and head of financial services sector for KPMG in Southern Africa, commented on the situation: “With geopolitical tension impacting world economies, it’s not surprising to see the direct impact on the fintech sector, with investments showing the lowest six-month period since 2020.” He further noted the brutal slowdown in the payment sector.
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Looking ahead to H2 2025, fintech investors are expected to remain highly selective, prioritizing startups with strong fundamentals and proven profitability. AI and digital assets are poised for continued growth, with a focus on strategic rather than speculative investments.
