Global fintech investment update

The optimism that permeated the fintech market at the end of 2021 quickly transformed into concerns about a potential recession in H1’22 as uncertainties related to the Russia-Ukraine conflict, ongoing supply chain challenges, and rising inflation and interest rates took their toll on public and private companies alike.

Total global investment in fintech plus the total number of fintech deals fell between H2’21 and H1’22. Fintech investment dropped in the Americas and EMEA, while the Asia-Pacific region attracted a new record high - primarily as a result of several large M&A transactions, including the $27.9 billion acquisition of Australia-based Afterpay by Block. The payments space accounted for the largest share of fintech investment during H1’22 ($43.6 billion), followed by crypto ($14.2 billion).

Fintech investment trends

Looking back, H1’22 can be defined by one word: unexpected. Consider some key trends we’ve seen across the fintech landscape over the past 6 months:

  • declining fintech investment across most jurisdictions, particularly between Q1’22 and Q2’22
  • shuttering of IPO window in the wake of turmoil in public markets and a rapid decline in valuations
  • ongoing strength of the payments sector across numerous jurisdictions
  • increasing focus on automation and extreme automation in cybersecurity, given the ever-increasing number of issues in need of investigation
  • growing diversity of jurisdictions attracting fintech investments, particularly $100 million+ VC rounds.

Heading into the second half of 2022, market challenges are expected to continue, with investors increasingly focusing on top-line revenue growth, profitability, and cash flow. M&A activity is well-positioned to grow as mature sectors see consolidation, investors look for attractive deals amid downward pressure on valuations and some startups contemplate alternatives to downrounds.

Download Pulse of Fintech H1’22

Explore the report for:
  • Global insights
  • Fintech segments
  • Regional insights: APAC, EMEA, Americas
  • Featured interview with Rob Schimek, CEO bolttech
  • Spotlight article: Embedded finance fuelled by cloud-based core banking technologies







Fintech investment figures in H1 2022

Global fintech investments recorded $107.8B with 2,980 deals.

Investment in fintech companies in Europe, Middle East and Africa (EMEA) recorded $26.6B with 939 deals.

Fintech investment in the Americas reached $39.4B with 1,430 deals.

Fintech companies in Asia Pacific received $41.8B with 607 deals.

Australian fintech investment trends

Fintech investments in Australia hit record levels, however deal volumes are down on the prior period.

Afterpay and Superhero deals put Australia on the map of global fintech investments.

In addition to the Afterpay deal, which completed in Q1’22, Australia reported a record Q2’22 with over $1.3 billion in fintech investment, largely as a result of the merger between Superhero and Swiftx.

Compared to Q2’19, investments have rebounded, exceeding pre-Covid levels (up from $1.2 billion) and growing 121 percent compared to Q2’21.

Other material investments announced during the first half of the year include the completion of a A$90 million Series A funding round for the Australian-based digital broker Stake, and payments software firm Zeller who raised $73 million in a Series B funding round.

Changes in market conditions impacting deal volumes

Despite record levels of fintech investment over the period, the total number of deals have fallen sharply, illustrating the change in investor sentiment and headwinds being faced across the sector.

The record levels of investment seen in the first half of the year have put Australian fintechs firmly on the global map, and this has and will continue to drive innovation and interest in the sector.

This optimism however is being met with a shift in investor sentiment as a result of changing market dynamics and macro-economic conditions, and as a result we expect deal activity in the short term is likely to be more subdued, with a focus on more mature / profitable fintechs and consolidation taking place amongst smaller players as they look for scale and operational efficiencies.

Daniel Teper
Partner, Mergers & Acquisitions and Head of Fintech
KPMG Australia

Fintech segments

Performance across fintech sectors varied during the period. Download the report (PDF 2.9MB) for the full segment analysis:


Investment in the payments space remained very strong in H1’22, accounting for $43.6 billion in investment, compared to the $60.3 billion seen during all of 2021.


Investment in the insurtech sector dropped considerably, with $3.8 billion of investment globally during H1’22 – well off-pace to match the $14.8 billion in investment seen during 2021.


Compared to a number of other areas of fintech, global investment in regtech showed strong resilience in H1’22. Globally, regtech companies attracted $5.6 billion in investment across 157 deals – following a similar trajectory to the level of investment seen in 2021.


After a record-shattering 2021, global investment in crypto and blockchain fell to $14.2 billion during H1’22.


At the end of H1’22, global investment in cybersecurity was running well short of 2021’s record, primarily due to the lack of a completed blockbuster M&A deal similar to the $2.7 billion acquisition of Verafin in H1’21.


After a very strong 2021, wealthtech investment softened considerably in H1’22, mirroring the decline in investment more broadly around the world. Globally, wealthtech attracted $443 million during H1’22.

Interviews and insights on emerging tech trends

Get in touch

Find out more