Global fintech investment experienced a significant downturn in 2024, plummeting to $95.6 billion across 4,639 deals. This figure, reported by KPMG's latest Pulse of Fintech report, marks the lowest investment level recorded since 2017.

The decline was particularly acute in several regions. The United Kingdom saw its fintech investment drop by over 25% year-on-year. Despite this substantial decrease, the UK still represented nearly half of all fintech investment within the Europe, Middle East, and Africa (EMEA) region. Overall, EMEA fintech investment fell from $27.6 billion in 2023 to $20.3 billion in 2024. Similarly, the Americas witnessed a six-year low in investment, totaling $63.8 billion. This regional decline was largely attributed to macroeconomic uncertainty. However, Canada bucked this trend, achieving a new domestic record with $9.4 billion in fintech investment.

KPMG identified several factors contributing to this global investment slump. A challenging exit environment was a primary concern, with investors apprehensive about the lack of sustained exits. Ongoing market uncertainty and concerns over valuations also played significant roles in dampening investor enthusiasm.

Despite the overarching downward trend, certain sectors within fintech showed resilience and growth. The payments sector emerged as a notable bright spot for investors. Global investment in payments surged to $31 billion in 2024, a significant increase from $17.2 billion in 2023. This was highlighted by the year's largest deal: GTCR's $12.5 billion buyout of a majority stake in the US-based payments processing firm, Worldpay.

The cryptocurrency and digital assets sector also saw an uptick in investment. Global investment in this area rose modestly from $8.7 billion in 2023 to $9.1 billion in 2024. The report suggests that the crypto sector gained attractiveness as the year progressed, evidenced by four of 2024's five largest crypto deals occurring in the second half of the year.