It may be hot outside, but there is no summer break for the payments and eCommerce industry. And we have just the means to illustrate it: the numbers. So let`s dive into the recent global fintech activity and relevant market predictions or current developments.
Globally, USD 57.9 billion were invested in fintech companies
And this number covers only the first half of this year. These are the findings of a new report released by KPMG, titled Pulse of Fintech.
Such intense fintech investments wave was driven in part by two huge deals: the USD 14 billion raised by Ant Financial and Vantiv’s acquisition of WorldPay for USD 12.9 billion. In addition, France, Switzerland, South Korea and Japan witnessed significant fintech agreements, extending investment beyond traditional fintech country leaders like the US, UK, China and India.
Other key research conclusions:
- An increasing number of companies focused on newer areas of fintech innovation, such as artificial intelligence (AI) and data analytics, gaining attention from fintech investors
- Regulation remains a key topic for corporate and other fintech investors so far this year, particularly in Europe, as a result of PSD2 and GDPR. The higher focus on managing regulatory requirements and compliance contributed to a growth in funding for regtech companies.
Regional statistics at a glance:
- US fintech companies received USD 14.2 billion in investment, including over USD 5 billion in venture capital investment
- during the first half of this year, fintech companies in Asia received USD 16.8 billion in investments across 162 deal
- investment in fintech companies in Europe reached USD 26 billion across 198 deals
“We continue to see technology giants around the world explore, collaborate and invest in fintech-related opportunities. In the US, we see the likes of Amazon, Microsoft and Google in an arms race of sorts — they all have hired senior leaders to drive expansion in this space and are actively recruiting fintechs onto their cloud platforms.”
Anton Ruddenklau, Global Co-Leader of Fintech,
The digital payment market in India set to expand further
By 2023, forecasts indicate that this market will reach USD 1 trillion. Contributing factors include a growth in mobile payments, which presents huge business opportunities for players in the digital space. Also, mobile payments are expected to increase from USD 10 billion in 2017-18 to USD 190 billion by 2023, as reported by Business Standard citing a Credit Suisse research.
Total retail payments value has seen a 3-fold growth, as compared to the trend rate of the last five years. In terms of volume, The Unified Payments Service and Immediate Payment Service had a spectacular growth during 2017- 18. In addition, UPI has enjoyed great adoption among consumers and merchants, as we have also mentioned in a previous blog article.
Other industry updates
- Revolut continues its expansion plans and the next target is Singapore. Other countries in North America and Asia-Pacific will follow shortly, according to the company`s blog.
- New fintech innovation lab is set to be set up in Portugal. The Portugal Fintech Association and Banco de Portugal have joined forces to create a communication channel between entrepreneurs and the authorities, as well as support the development of fintech projects.
Previous international news stories: