Fintech sector sees strongest half-year in years

The first half of 2026 marked the strongest six-month period for global fintech investment since 2022, driven by a few large deals rather than widespread market activity.

KPMG’s latest Pulse of Fintech report showed total fintech investment reached $103.1 billion between January and June, up from $72.2 billion in the second half of last year. The increase came with a notable shift: deal volume fell to its lowest point in years, with just 2,100 transactions completed, down from 2,501 in the previous six-month period.

A single deal reshaped the market

The $24.3 billion acquisition of London-based Worldpay by Global Payments in January accounted for nearly a quarter of all fintech investment in the first half. That transaction, along with nine other deals worth $1 billion or more, concentrated funding in a small group of mature companies rather than early-stage startups.

Related: Best Treasury and Cash Management Banks in Latin America 2026

Other major deals included Fidelity National Information Services’ $13.5 billion purchase of Global Payments’ issuer solutions business, TSYS, and the $8.4 billion buyout of Clearwater Analytics. Private equity also contributed, with Sixth Street Partners investing over $1 billion in Belgium’s Kpler Holding in June.

Regional divides widen

The Americas led fintech investment, securing $86.9 billion, more than 80% of the global total. The U.S. alone accounted for $80.8 billion, or 75% of worldwide funding. Merger and acquisition activity in the country more than doubled to $64.6 billion from $27.4 billion in the prior six months.

Europe, the Middle East, and Africa saw investment drop to $11.3 billion across 626 deals. The region is on track for its weakest year in a decade. The UK led Europe with $2.5 billion in funding, followed by Germany with $1.6 billion and the Middle East with $1.4 billion. Geopolitical tensions, inflation concerns tied to the Iran conflict, and shifting tariff policies created headwinds.

Asia-Pacific performed even worse, with investment sliding to $4.6 billion across 350 deals, down from $7.1 billion in the second half of 2025. China, Japan, and Singapore experienced weak activity, though India remained steady with $2 billion in funding. South Korea reached a four-year high of $899 million.

Related: Laura Biggs Embraces Every Challenge With Zeal

Payments remained the leading sector, drawing $44.2 billion in investment, already exceeding the full-year total for 2025. AI-focused fintechs attracted $21.4 billion, while digital assets and crypto secured $11.1 billion across 467 deals.

Fintech’s recovery is real but uneven. While investment totals are rising, fewer companies benefit from the capital. Early-stage startups face challenges, especially in regions outside the U.S., where funding remains limited.

The rebound may not be broad enough to support the industry’s long-term growth.