Pulse of Fintech: H2 2025

Global highlights of H2’25

Global fintech funding in H2’25 recorded $56.3B with 2,169 deals.

After three years of declining investment, the fintech market globally turned a corner in 2025, with growing deal sizes and growing excitement — particularly in the digital assets space.

Global fintech investment rebounded in 2025, rising to $116 billion across 4,719 deals, up from $95.5 billion across 5,533 deals in 2024.
Regionally, activity was strongest in the Americas, which attracted $66.5 billion, up from $55.4 billion in 2024. EMEA followed with $29.2 billion, compared to $26.5 billion a year earlier. Asia-Pacific activity slowed, declining to $9.3 billion from $11.7 billion in 2024.
Global deal volume fell to its lowest annual level since 2017, reflecting continued investor selectivity despite higher capital deployment.

Pulse of Fintech H2 2025

Global analysis of fintech funding

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After three straight years of decline, global fintech market sees investment rise

Global fintech investment picked up in 2025 — rising from a seven-year low of $95.5 billion to $116 billion year-over-year despite deal volume tumbling for a fourth straight year to reach an eight-year low of 4,719. Fintech activity slowed somewhat in the second half of the year, with $56.3 billion in investment across 2,169 deals in H2’25, compared to the $59.7 billion across 2,550 deals in H1’25.

Americas accounts for largest share of fintech investment in 2025 — but not the largest deals in H2’25

The Americas accounted for the largest share of fintech investment globally in 2025, attracting $66.5 billion across 2,409 deals — of which the US accounted for $56.6 billion across 1,977 deals. The EMEA region saw $29.2 billion invested across 1,484 deals, while the ASPAC region saw $9.3 billion across 763 deals.

H2’25 mirrored annual trends, with the Americas drawing $27.4 billion across 1,160 deals — of which the US accounted for $23.9 billion across 961 deals, the EMEA region accounting for $13.8 billion across 617 deals, and the ASPAC region accounting for $4.6 billion across 362 deals. Despite the US attracting the largest share of fintech investment during H2’25, two of the three largest deals occurred in other jurisdictions, including the $3 billion VC raise by UK-based financial services platform Revolut,¹ the $2.5 billion take private of Israel-based Sapiens International by Advent and Intercontinental Exchange’s $2 billion stake in Polymarket.²

Global investment in digital assets nearly doubles in 2025

2025 was a banner year for digital assets, with total global investment nearly doubling from $11.2 billion to $19.1 billion year-over-year. While total investment fell shy of the record $32.2 billion seen in 2021, the current momentum is expected to continue into 2026 — driven by increasing regulatory certainty, including the passing of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in the US and the Markets in Crypto-Assets Regulations (MiCA) coming into full force in the EU at the end of 2024, and regulation expected in the UK by 2027.

The sector saw a significant number of digital assets focused startups raising large VC funding rounds and mature firms holding successful IPO exits — or announcing plans to do so. Headed into 2026, many of these companies are expected to focus on gaining scale to get ahead of the competition. Interest in stablecoins also saw a significant surge in 2025 as corporates entered the space both directly and through consortiums. Asset tokenization, particularly of money market funds, but also of assets like real estate — also saw increasing interest.

Fintech segments

Payments sector sees smaller number of bigger deals in 2025

Investment in the global payments sector was relatively flat year-over year, with $19.2 billion in investment in 2025 compared to $20.4 billion in 2024. Deal volume dropped more noticeably over the same time period from 655 deals to a nine-year low of 542. The decline in deal value reflects a shift toward selectivity, with investors in the payments space increasingly concentrating their capital on large, scaling companies with proven fundamentals over higher-risk early-stage companies. A $3 billion VC raise by UK-based financial services platform Revolut was the largest transaction in the payments space in H1’25, followed by India-based payments app PhonePe’s $600 million VC raise³.

Insurtech investment rises to $8.6 billion — far exceeding 2024

After falling to a more than ten-year low of $2.9 billion in 2024, total global investment in insurtech bounced back to $8.6 billion in 2025 — similar to the level of investment seen in 2023, if substantially lower than the record high of $15.9 billion seen in 2019. Deal volume remained soft, falling slightly year-over-year to a ten-year low of 291 deals in 2025.

The large uptick in Insurtech investment was driven largely by two significant outlier deals: the $2.6 billion acquisition of US-based SMB digital insurance company Next Insurance by Ergo — a part of Munich Re — in H1’25⁴ and the $2.5 billion take private of Israel-based SaaS insurance services company Sapiens International Corporation by PE firm Advent in H2’25.⁵

Cybersecurity investment falls to seven-year low in 2025

Both total global investment in fintech-focused cybersecurity startups and the number of fintech-focused cybersecurity deals fell to seven-year lows in 2025 — with just $700 million invested across 72 deals, compared to $890 million across 93 deals in 2024.

VC raises accounted for the vast majority of fintech-focused cybersecurity deals during 2025, led by the $340 million raise by US-based digital identity verification firm ID.me in H2’25⁶. Other cybersecurity deals were much smaller in size; the largest raises in H2’25 included a $75 million raise by Portugal-based fraud detection-focused RiskOps platform Feedzai⁷, a $25 million raise by Czech Republic-based fraud detection platform Resistant AI,⁸ and a $20 million raise by Israel-based AI-driven identity authentication firm Glide Identity.⁹

Global investment in digital assets and currencies surges in H2'25

After two very slow years, the digital assets space saw total investment globally nearly double year-over-year — rising from $11.2 billion across 1,584 deals in 2024 to $19.1 billion across 1,199 deals in 2025.

While total investment remained lower than totals seen in 2021 ($32.2 billion) and 2022 ($25.3), the current momentum is expected to build heading into 2026, driven by regulatory certainty — particularly in the US, rapidly growing interest and investment in stablecoins, and growing participation in the sector by traditional corporates.

Regtech deal volume rises year-over-year, but deals values remains small

While total investment in regtech declined in value from $6.8 billion in 2024 to $4.9 billion in 2025, the total number of deals increased from 431 deals to 519 in 2025.

The vast majority of investments over the course of the year were quite modest; during H2’25, the largest deals were the $180 million VC raise by US-based finance compliance platform AppZen,¹⁰ and the $147 million VC raise by Netherlands-based bitcoin vault company Treasury¹¹.

After record year in 2024, investment in Wealthtech falls in 2025

After rising to a record $4.9 billion on the back of a number of outlier deals in 2024, total global investment in wealthtech fell to a three-year low of $1.4 billion in 2025 despite steady deal volume year-over-year. The slowdown in investment likely reflects a combination of factors, including the lack of emergent use cases in the sector and the rapidly shifting focus of many fintech investors — particularly corporates — towards the red-hot AI sector.

During H2’25, the largest wealthtech deal was the Toronto-based money management fintech Wealthsimple, who secured $538 million in an equity funding round co-led by Dragoneer Investment Group and GIC,¹² while the other deal sizes were quite modest — led by a $64 million early VC raise by India-based Neo Asset Management,¹³ and a $38 million PE growth investment in US-based turnkey asset management platform GeoWealth,¹⁴

Investor confidence in AI funding strengthened

AI was a major investment trend in 2025 — well beyond the fintech space. Year-over-year, investment in AI-driven fintech companies rose from $12.1 billion to $16.8 billion, while the number of deals grew from 1,183 to 1,334.

Corporates were particularly active in the AI space — with a major focus on solutions able to drive operational efficiencies and improvements in existing processes. While total investment was strong, the majority of investment occurred in the broader AI space, with many corporates choosing to partner directly with the large tech and AI players.