KPMG International’s ‘Pulse of Fintech 2H2025’ study has revealed that the global fintech market saw some $116 billion in total investment in 2025, up from the previous year’s $95.5 billion. This turn follows three years of declining investment.
Overall volume in deals however continued to decline to an eight-year low of 4,719 deals from 5,533 deals in 2024; the increase in total capital deployed stems from larger deal sizes, renewed confidence and a more selective investment environment.
On a regional basis, activity was strongest in the Americas, which attracted $66.5 billion in 2025, up from $55.4 billion the year before. Europe, the Middle East and Africa (EMEA) followed with $29.2 billion, while activity in the Asia-Pacific (APAC) activity slowed, declining to $9.3 billion from $11.7 billion in 2024.
Throughout 2025, investment activity remained relatively balanced throughout the year, with $56.3 billion deployed in the second half suggesting momentum was sustained rather than front-loaded.
The rebound was underpinned by strong growth in venture capital (VC) and merger and acquisitions (M&A) activity, even with the softening of private equity investment. Global M&A deal value rose to $55.4 billion across 840 deals, led by the US at $27.5 billion and EMEA at $11 billion.
VC investment meanwhile climbed to $56.7 billion across 3,765 deals globally, reflecting renewed appetite for scaled growth platforms. The US drove the largest VC gains, with investment rising from $19.7 billion in 2024 to $27.2 billion in 2025.
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Specifically, 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, attracting $19.1 billion in 2025, which is 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, the strongest year since 2019.
Anton Ruddenklau, global lead of innovation and fintech for financial services says: “While deal volumes remain muted, the increase in capital deployed - and the resurgence of exits - signal growing investor confidence, particularly around scalable platforms in digital assets and AI. As liquidity improves, we expect this renewed momentum to translate into stronger deal activity over the year ahead.”
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Digital assets re-emerge as a major driver of fintech investment
The digital assets sector emerged as a central focus for fintech investors in 2025, supported by improving market conditions and increased regulatory clarity.
This is particularly driven by the implementation of the GENIUS Act in the US in the second half of 2025, which aims to create a regulatory framework for payment stablecoin issuers to operate in the US or for foreign entities to offer stablecoins to US residents.
This shift was observed 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, reflecting 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 as well as public market activity.
Payments investment remains resilient
In the global payments sector, investments remained relatively stable in 2025, totaling $19.2 billion, a mild decline from $20.4 billion in 2024.
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Although overall capital deployed in the sector held steady, deal volume declined to a nine-year low of 542 transactions.
Investors increasingly concentrated capital in proven, scaling payments platforms, moving away from higher-risk early-stage models. With the accelerating adoption in digital payment, interest remained particularly strong in B2B payments infrastructure, real-time payments and emerging markets.
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, payment-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.
Global fintech exits surge
At the same time, exit activity for fintech companies surged in 2025, reaching $104.4 billion across 486 exits globally– the third-highest year on record, only behind 2021 and 2020.
VC-backed exits accounted for some $79.7 billion of total exit value, signaling a 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.
Capital concentrates with deal volume decline in the Americas
Fintech investment in the Americas increased from $55.4 billion in 2024 to $66.5 billion in 2025, even with the decline in deal volume from 2,627 to 2,409, reflecting larger average deal sizes.
Unsurprisingly, the US accounted for $56.6 billion of total investment, a significant growth from $42.4 billion in 2024. In Canada, fintech investment plunged from a record $9.9 billion in 2024 to $2.4 billion in 2025. Although this is well-below the prior year’s peak, KPMG notes that the level of activity remains solid relative to historical norms.
Brazil, by contrast, saw investment in fintech more than double, rising from $847.4 million in 2024 to $1.9 billion the next year.
Across the Americas, VC activity strengthened, increasing from $23.9 billion in 2024 to $32.5 billion in 2025, while private equity investment also rose, reaching $1.9 billion, up from $1.47 billion the year prior. M&A activity showed a more modest growth, driven by strong US deal-making, but activity elsewhere in the region remained comparatively subdued.
A two-speed fintech market emerges across EMEA
In the EMEA region, fintech investment grew 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– although it attracted some $10.96 billion in investment, this was a decline from $13.35 billion in 2024. The Nordics also delivered a standout year, drawing $5.3 billion in fintech investment.
On the other hand, France experienced a sharp slowdown, with investment falling from $3.1 billion across 135 deals in 2024 to just $1 billion in 2025, its weakest year since 2018. Germany similarly saw subdued activity, with investment reaching only $966 million, well below prior-year levels and approaching its record low seen in 2016.
Asia-Pacific (APAC) fintech halts but exits pick up
In the APAC region, fintech investment and deal activity 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, reflecting 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, a sign of 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. VC investment was also subdued, reaching $7.5 billion in 2025– its lowest level in the past decade, underscoring the depth of the regional slowdown in risk capital deployment.
Cautious optimism tempered by ongoing risks
Heading into 2026, global fintech sentiment is cautiously optimistic, with improving investment and exit conditions supporting renewed confidence across the market. Despite this, risks remain, due to ongoing geopolitical tensions, the possibility of economic slowdown in several regions and growing investor scrutiny around the sustainability of current artificial intelligence (AI) valuations.
Karim Haji, global head of financial services says: “Looking ahead to 2026, the fintech sector is entering a more balanced phase - one defined by selective growth, clearer paths to profitability, and improving liquidity. While macroeconomic and geopolitical risks remain, the combination of stronger exit markets, greater regulatory clarity, and accelerating innovation provides a constructive foundation for sustained investment and long-term value creation.”
