KPMG’s Pulse of Fintech H1 2025 reports that global fintech investment fell to USD 44.7 billion across 2,216 deals, the lowest half-year total in five years. This drop comes amid persistent high interest rates, geopolitical uncertainty and trade tensions. The Americas accounted for more than half of this activity (USD 26.7 billion), driven by major transactions such as Ergo Group’s USD 2.6 billion acquisition of Next Insurance and Binance’s USD 2 billion raise. EMEA followed with USD 13.7 billion, led by BlackRock’s USD 3.2 billion purchase of Preqin. ASPAC lagged at USD 4.3 billion. By sector, digital assets dominated with USD 8.4 billion, buoyed by Circle’s USD 1.1 billion IPO (which surged 168% on its debut). In contrast, payments investment dropped to USD 4.6 billion, its weakest level in a decade, even as insurtech (USD 4.8 billion), regtech and wealthtech gained momentum. Overall, investors are increasingly prioritizing AI-driven fintechs, compliance-focused solutions and sustainable models. Looking ahead, KPMG expects digital assets, tokenization platforms and AI-led transformation to remain central to fintech investment in the second half of 2025.
