After three years of declining investment, the global fintech market turned a corner in 2025, attracting $116 billion, up from $95.5 billion in 2024, according to KPMG latest Pulse of Fintech report.

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, says KPMG.

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.

The digital assets sector emerged as a central focus for investors in 2025, supported by improving market conditions and increased regulatory clarity. 

There was 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.

AI inevitably also saw strong interest, raking in $16,8 billion across the year.

Investment in payments remained steady, totalling $19.2 billion, compared with $20.4 billion in 2024. Investor interest remained particularly strong in B2B payments infrastructure, real-time payments, and emerging markets, where digital payments adoption continues to accelerate.

“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”, said Karim Haji, global head of financial services at KPMG International.

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