Momentum building in fintech market as investment concentrates on scaling business models, says KPMG’s H1’26 Pulse of Fintech
Global fintech investment across venture capital, private equity, and M&A increased from $72.2 billion in H2’25 to $103.1 billion in H1’26, putting the sector on pace for its strongest annual investment performance in four years, according to KPMG’s latest Pulse of Fintech report.
Deal volume remained quite soft, however, with just 2,100 deals globally in H1’26 compared to 2,501 in H2’25 as investors continued to concentrate their capital on large deals centered around mature fintechs with well-proven business models. During H1’26, there were 10 $1 billion+ fintech deals, including eight in the United States, led by the acquisitions of Worldpay ($24.3 billion) and Total System Services ($13.5 billion), the buyout of Clearwater Analytics ($8.4 billion), and the take-private of OneStream ($6.4 billion). Europe also saw two large transactions: the buyout of Denmark-based Saxo Bank for $1.2 billion and the PE growth round by Belgium-based Kpler Holding.
The Americas drove the surge in fintech investment during H1’26, attracting $86.9 billion, including $80.8 billion in the US alone. In contrast, fintech investment declined across both EMEA and Asia-Pacific, with EMEA falling from $18 billion in H2’25 to $11.3 billion in H1’26, and ASPAC from $7.1 billion to $4.6 billion. Persistent geopolitical uncertainty, the Iran conflict, and concerns over inflation and interest rates likely contributed to a more cautious investment environment in both regions.
Anton Ruddenklau, Global Lead of Financial Services Innovation and Fintech, KPMG International, said:
2026 – Key highlights
- Global fintech investment has grown considerably over the past three six-month periods, rising from $50.5 billion in H1’25 to $72.2 billion in H2’25 to $103.1 billion in H1’26.
- Global deal volume fell from 2,501 deals in H2’25 to 2,100 in H1’26; this remains below historic norms, reflecting continued investor selectivity despite higher capital deployment.
- The Americas attracted over 80 percent of global fintech investment in H1’26 ($86.9 billion across 1,120 deals), of which the US accounted for $80.8 billion across 933 deals.
- Coming off a strong 2025 that saw $39.5 billion invested across 1,714 deals, the EMEA region saw $11.3 billion invested across 626 deals in H1’26 – on pace for a decade-low for both deal volume and value.
- Fintech investment in the ASPAC region remained muted, declining from $7.1 billion across 426 deals during H2’25 to $4.6 billion across 350 deals in H1’26.
- Global fintech M&A activity strengthened, with deal value increasing from $37.2 billion across 514 deals in H2’25 to $67.9 billion across 394 deals in H1’26.
- Venture capital investment remained strong across the global fintech sector, led by the US which saw $16.8 billion in VC investment.
- At the sector level, payments led the way, attracting $44.2 billion in H1’26: well over 2025’s annual total, as a result of several large megadeals.
- AI-focused fintechs attract $21.4 billion across VC, PE, and M&A.
Digital assets sector continues to attract investment globally amid maturing ecosystems
The digital assets sector remained one of the strongest areas of fintech investment in H1’26, attracting $11.1 billion across 467 deals. While below the record $21.9 billion invested across 1,335 deals during 2025, investment remained strong, already surpassing the full-year totals recorded in both 2023 and 2024. The US continued to dominate the sector, attracting $5.9 billion – more than half of global investment in the space – despite accounting for fewer than half of all deals (187), highlighting the larger average deal size for US-based transactions. The digital assets space was particularly attractive for CVC investors in H1’26, driven in large part by the participation of the venture arms of major crypto platforms, and crypto infrastructure companies, looking to expand the digital assets ecosystem and related infrastructure.
The continued strength of the sector reflects its evolution from a largely speculative market to an increasingly mainstream component of the global financial ecosystem. Clearer regulatory frameworks, growing institutional participation, and increasing confidence among traditional financial institutions have all contributed to this shift. During H1’26, many banks and financial services firms continued to evaluate digital asset-related business opportunities, assess the implications for their existing business models, and invest in the infrastructure needed to support the growing adoption of digital assets.
Payments sector fueled by large megadeals
Total investment in the payments sector surged to $44.2 billion in H1’26, putting it well ahead of the $20.2 billion invested in the space during all of 2025. Much of this increase was driven by the $24.3 billion acquisition of Worldpay by Global Payments, which was one of the largest fintech transactions in recent years. Beyond this headline deal, the payments market continued to demonstrate strong investor confidence across regions. Investors continued to favor scaled, profitable, and infrastructure-focused businesses over earlier-stage, higher-risk investments, evidenced by the continued softness in deal volume. H1’26 saw just 168 payments deals, well under the pace needed to match the 577 seen in 2025.
The payments sector continued to see a growing emphasis on consolidation. Strategic acquirers focused on obtaining platforms businesses capable of expanding product capabilities, strengthening geographic reach, and accelerating growth. Value creation also remained a key objective for corporates looking to improve operational efficiencies, leverage scale, and position themselves for long-term growth.
US accounts for over 75 percent of global fintech investment, and 92 percent of investment in the Americas
Fintech investment in the Americas rose from $47.1 billion across 1,315 deals in H2’25 to $86.9 billion across 1,120 deals in H1’26. The US accounted for $80.8 billion of this investment across 933 deals – more than 75 percent of global fintech investment and 92 percent of the fintech investment in the Americas. While the US saw strength, other jurisdictions in the Americas saw more modest investment; Canadian fintechs accounted for $1 billion investment in H1’26, well below last year’s pace, while investment in Brazil declined sharply from $1.6 billion in H2’25 to $508 million in H1’26.
M&A deal value in the Americas more than doubled, from $27.4 billion to $64.6 billion between H2’25 and H1’26. Even excluding the two largest M&A transactions, which together accounted for $37.7 billion, M&A activity remained robust as corporates continued to divest non-core business assets and strategics continued to look for growth opportunities. AI continued to be a dominant investment theme in the Americas, particularly in the US and Canada, with many investors looking to it as an opportunity to drive operational efficiencies and value creation in areas like fraud prevention and AI-enabled payments.
Geopolitical and macroeconomic uncertainties dampen fintech market in EMEA region
Fintech investment in the EMEA region fell to $11.3 billion across 626 deals in H1’26: less than the $18.0 billion invested across 753 deals seen in H2’25. Investment was quite spread out across the region, however, with the UK attracting $2.5 billion across 205 deals, Germany seeing $1.6 billion across 36 deals, the Middle East attracting $1.4 billion across 50 deals, the Nordics region seeing $1.4 billion across 44 deals, and France attracting $1.2 billion across 45 deals.
Investor sentiment in the EMEA region was weighed down by several uncertainties, including heightened geopolitical tensions, tariff policies, and renewed concerns over inflation and interest rates stemming from the Iran conflict. Despite the broader slowdown, EMEA investors continued to show interest in AI-focused fintechs, particularly those developing solutions related to digital identity management, cybersecurity, and regtech. These fintechs are still relatively small in EMEA compared with their counterparts in other regions, making for more modest funding rounds.
ASPAC sees sharp decline in fintech investment in H1’26
Fintech investment in the ASPAC region fell from $7.1 billion across 426 deals in H2’25 to just $4.6 billion across 350 deals in H1’26. VC deals accounted for much of the investment in H1’26 ($3.4 billion), as PE investment remained quiet, and M&A deal value fell from $2.7 billion to $1.2 billion between H2’25 and H1’26. The slowdown reflected weaker investment activity across several of the region’s largest fintech markets, including China, Japan, and Singapore. Although it is important to note that much of the fintech activity in China in recent years has occurred outside of traditional VC, PE, and M&A.
India saw a relatively strong start to the year, attracting $2 billion in fintech investment in H1’26, only slightly behind its 2025 pace. Investment in South Korea was also notable; it continued to emerge as a regional fintech hub, attracting a four-year high of $899 million at mid-year – and on track for its best year of fintech investment yet. Australia, meanwhile, saw $456 million in investment during H1’26.
Fintech poised for continued growth
While geopolitical uncertainty, macroeconomic pressures, and a subdued exit environment continue to present challenges, the sector’s fundamentals remain strong. Growing institutional adoption of digital assets and stablecoins, continued investment in AI and payments, improving regulatory clarity, and sustained strategic M&A activity all point to continued momentum through the remainder of the year.
Karim Haji, Global Head of Financial Services, KPMG International, said:
“While much of today’s investment is focused on the largest and highest-quality deals, the broader fintech market is gaining momentum. AI is driving new opportunities, corporates are becoming more active, and private equity is looking at consolidation plays. Even smaller fintechs are attracting attention when they bring something truly differentiated to the table. Together, these trends point to a positive long-term outlook for the fintech sector.”
Methodology
PitchBook applies its own proprietary methodology and classification criteria when determining which transactions should be included within its datasets. Data is subject to ongoing review and can be updated as additional information becomes available. During analysis, PitchBook validates data using both publicly available information and proprietary research processes. Transactions included within the dataset must meet PitchBook’s methodology criteria at the time they are recorded. Where questions or challenges arise, PitchBook can undertake additional review, including outreach to the company concerned and consultation with internal data operations and research teams before determining whether amendments are required. In this instance, half-year sums or counts can differ based on some transactions shifting dates or financing rounds being reopened or mergers being delayed/canceled, which can result in changes between published datasets.
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