APAC fintech funding down in H1 despite global surge

KPMG notes investors are deploying larger sums into fewer, profitable fintechs.

Fintech investment in the Asia Pacific region fell to $4.6b across 350 deals in the first half of 2026, down from the $7.1b raised in H2 2025, according to data from KPMG.

Globally, fintech investment rose to $103.1b in H1 despite softer deal activity, KPMG said in its Pulse of Fintech H1 report published on 13 October 2026.

Together with the Europe, Middle East, and Africa (EMEA) region, APAC recorded a softer start to the year.

KPMG noted the “unique” nature of China’s fintech market, where investment primarily occurs outside of traditional venture capitals (VC), private equity (PE), and mergers & acquisition (M&A) activity—whether through internal corporate investments or partnerships and alliances, the report said.

“Investors continued to concentrate capital in larger transactions involving mature fintechs with proven business models, driving higher overall investment value even as deal volume declined,” Andrew Huang, head of fintech at KPMG China, said in the report.

Globally, investments in payments jumped to $44.2b in H1 despite only 168 payment deals—compared to $20.2b raised in H1 2025 across 577 deals.

“Investors remain confident in payments, but they are choosing to deploy larger amounts of capital to fewer transactions, and favoring scaled, profitable, and infrastructure-focused businesses over early-stage speculative investments,” KPMG wrote in the report.