Global Fintech Investments Plummet to Seven-Year Low Amid Economic Uncertainty
Global fintech investments fell to $95.6 billion in 2024, marking a seven-year low, according to KPMG’s Pulse of Fintech report released Wednesday. The report highlighted that total deals in the fintech sector amounted to 4,639, as macroeconomic challenges, geopolitical conflicts, and major elections contributed to uncertainty, leading to a sharp decline in mergers and acquisitions (M&A) and private equity (PE) investments.
The Americas led fintech investments with $63.8 billion across 2,267 deals, with the US accounting for the majority at $50.7 billion. The Europe, Middle East, and Africa (EMEA) region followed with $20.3 billion in investments from 1,465 deals, while the Asia-Pacific region recorded $11.4 billion from 896 deals. Despite the overall decline, private equity investments rebounded from $17.2 billion in 2023 to $31 billion in 2024, with the biggest transaction being the $12.5 billion sale of Worldpay in the first half of the year.
Total global investment fell from $51.7 billion to $43.9 billion between the first and second halves of the year. M&A activity dropped from $28.1 billion to $21.6 billion, while venture capital investments declined from $22.5 billion to $20.9 billion. However, the second half of 2024 still saw significant private equity transactions across all regions, signaling selective investment resilience despite broader financial headwinds.
