Global fintech investment rebounds in 2025, supported by stronger exit activity

• Globally, digital assets and AI rake in $19.1 billion and $16.8 billion respectively.
• Americas accounts for $66.5 billion in fintech investment.
• Exit markets reopened meaningfully, improving liquidity and sentiment heading into 2026.

11 February 2026 — After three years of declining investment, the global fintech market turned a corner in 2025, attracting $116 billion in total investment, up from $95.5 billion in 2024, according to KPMG International’s Pulse of Fintech H2’25.

While overall deal volume continued to decline — falling to 4,719 deals, an eight-year low - the increase in total capital deployed points to larger deal sizes, renewed confidence, and a more selective investment environment. Investment activity remained relatively balanced throughout the year, with $56.3 billion deployed in H2’25, suggesting momentum was sustained rather than front-loaded.

The rebound was underpinned by strong growth in venture capital and M&A activity, even as private equity investment softened. Global M&A deal value rose to $55.4 billion, driven primarily by the United States ($27.5 billion) and EMEA ($11 billion), while VC investment climbed to $56.7 billion, reflecting renewed appetite for scaled growth platforms.

• 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.
• Global fintech M&A activity strengthened, with deal value increasing from $44.6 billion across 829 deals in 2024 to $55.4 billion across 840 deals in 2025, led by strong US activity.
• Global venture capital investment increased to $56.7 billion across 3,765 deals, up from $45.4 billion across 4,567 deals in 2024.
• The US drove the largest VC gains, with investment rising year over year from $19.7 billion to $27.2 billion.
• Corporate venture capital (CVC) was a standout, climbing from $20.9 billion across 1,408 deals in 2024 to $29.7 billion across 1,055 deals in 2025.
• At the sector level, digital assets significantly outperformed 2024 levels: digital assets attracted $19.1 billion in 2025 — the third-highest year on record, up from $11.2 billion in 2024. Investment in companies focused on B2B products and services saw renewed momentum, reaching $13.5 billion, its strongest year since 2019.

The digital assets sector emerged as a central focus for fintech investors in 2025, supported by improving market conditions and increased regulatory clarity - particularly following the passage of the GENIUS Act in the United States in H2’25. This shift was reflected in a sharp rise in investment in digital assets-focused startups, which nearly doubled from $11.2 billion in 2024 to $19.1 billion in 2025, signaling a strong rebound in investor confidence.

While investment levels remained below the highs seen in 2021 and 2022, momentum strengthened throughout the year, driven by growing interest in stablecoins, increased participation from traditional financial institutions and corporates, and a broader mix of VC, M&A, and public market activity. As regulatory frameworks continue to evolve and use cases mature, 2025 is increasingly viewed as a turning point for digital assets becoming a more mainstream component of the global fintech ecosystem.

Investment in the global payments sector remained relatively stable in 2025, totaling $19.2 billion, compared with $20.4 billion in 2024. While overall capital deployed held steady, deal volume declined to 542 transactions — a nine-year low. Investors increasingly concentrated capital in proven, scaling payments platforms, moving away from higher-risk early-stage models.

Investor interest remained particularly strong in B2B payments infrastructure, real-time payments, and emerging markets, where digital payments adoption continues to accelerate. Activity in regions such as South America, Africa, and Southeast Asia was supported by regulatory progress, financial inclusion initiatives, and the expansion of instant payments systems. At the same time, payments-focused M&A activity shifted toward mid-sized, capability-driven transactions, signaling a more mature phase of consolidation focused on operational strength and long-term competitiveness rather than aggressive scale alone.

Exit activity for fintech companies surged in 2025, reaching $104.4 billion across 486 exits globally — the third-highest year on record, trailing only 2021 and 2020. VC-backed exits accounted for $79.7 billion of total exit value, underscoring a meaningful reopening of liquidity for venture investors after several subdued years. This resurgence was driven largely by a strong wave of public listings throughout the year, reflecting improved capital-market conditions and growing investor appetite for scaled, profitable fintech platforms.

Fintech investment in the Americas increased from $55.4 billion in 2024 to $66.5 billion in 2025, even as deal volume declined from 2,627 to 2,409, reflecting larger average deal sizes. The United States accounted for $56.6 billion of total investment, up significantly from $42.4 billion in 2024, reinforcing its role as the primary growth engine in the region.

In Canada, fintech investment declined from a record $9.9 billion in 2024 to $2.4 billion in 2025. While well below the prior year’s peak, this level of activity remains solid relative to historical norms. Brazil, by contrast, saw fintech investment more than double, rising from $847.4 million in 2024 to $1.9 billion in 2025.

By investment type, venture capital activity strengthened across the Americas, increasing from $23.9 billion in 2024 to $32.5 billion in 2025. Private equity investment also rose, reaching $1.9 billion, up from $1.47 billion the year prior. M&A activity increased modestly, driven by strong US dealmaking, though activity elsewhere in the region remained comparatively subdued.

Fintech investment in the EMEA region increased from $26.5 billion in 2024 to $29.2 billion in 2025, reflecting uneven momentum across markets. The UK remained the largest fintech market in the region, attracting $10.96 billion in investment, although this represented a meaningful decline from $13.35 billion in 2024. The Nordics also delivered a standout year, drawing $5.3 billion in fintech investment.

In contrast, France experienced a sharp slowdown, with investment falling from $3.1 billion across 135 deals in 2024 to just $1 billion in 2025, marking its weakest year since 2018. Germany also saw subdued activity, with investment reaching only $966 million, well below prior-year levels and approaching the record low recorded in 2016.

Fintech investment and deal activity in Asia-Pacific declined sharply in 2025, falling from $11.7 billion across 1,028 deals in 2024 to $9.3 billion across 763 deals. India was a major growth driver, accounting for $3.5 billion of total fintech investment across 213 deals, underscoring strong investor appetite despite broader regional softness. Japan accounted for $645.6 million of total investment, while Australia attracted $609.9 million and China recorded $876.1 million. Overall, deal sizes across the region remained relatively small, reflecting continued investor caution and a focus on early-stage and selective opportunities.

By investment type, private equity activity fell to an all-time annual low, totaling just $101.8 million across nine deals. Venture capital investment was also subdued, reaching $7.5 billion, its lowest level in the past decade, underscoring the depth of the regional slowdown in risk capital deployment.

Heading into 2026, global fintech sentiment is cautiously optimistic, with improving investment and exit conditions supporting renewed confidence across the market. However, meaningful risks remain, including ongoing geopolitical tensions, the possibility of economic slowdown in several regions, and growing investor scrutiny around the sustainability of current AI valuations.

Dannielle McAllister
Global Media Relations Manager
KPMG International

T: +44 7471 799 894
E: dannielle.mcallister@kpmg.co.uk

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