With the exception of M&A – which saw deal value drop over 50 percent (i.e., from US$130 billion in 2019 to US$61 billion in 2020) – the overall fintech market proved remarkably resilient during 2020 despite a broad array of uncertainties. Following a short COVID-19 driven pause in H1’20, fintech investment bounced back strongly in H2’20, more than doubling from H1’20 (US$33.4 billion) to H2’20 (US$71.9 billion). The US was the dominant benefactor for fintech investment in 2020, while the payments space continued to dominate investment from a sector perspective.
Strong VC investment throughout the year helped buoy overall fintech investment. Global fintech-focused VC investment reached US$42 billion in 2020, including US$20.5 billion in H2. Both the Americas (US$23 billion) and EMEA (US$9.2 billion) regions saw record highs of annual fintech-focused VC investment.