Singapore’s fintech sector saw a notable rebound in the first half of 2025, attracting nearly US$1.04 billion across 90 deals, according to KPMG’s Pulse of Fintech H1 2025 report.
This is the highest investment level since the first half of 2023, when investments reached US$1.59 billion across 125 deals.
Compared to H1 2024, deal values increased by approximately 87 percent year-on-year and 28 percent from H2 2024.
Investment activity was concentrated in payments, cryptocurrency, and AI and machine learning, which together accounted for the majority of deal value in Singapore.
Payment deals were distributed between early and late-stage rounds, while cryptocurrency and AI primarily saw early-stage investments.
Globally, fintech investment totaled US$44.7 billion across 2,216 deals in H1 2025, down from US$54.2 billion across 2,376 deals in H2 2024.
Anton Ruddenklau, Partner and Head of Financial Services at KPMG in Singapore and Global Head of Fintech and Innovation for Financial Services at KPMG International, said,
“The data for Singapore shows that the country is seen as a strategic hub for fintech innovation, supported by robust regulatory frameworks that have shaped a financial ecosystem known for its efficiency, resilience, and trustworthiness.”
He added,
“In a climate shaped by global trade tensions, the ability to enable decentralised, tech-driven, and non-traditional financial solutions will be critical. As traditional financial flows face disruption, the demand for agile, resilient infrastructure will see higher demand.”
Singapore’s payments sector recorded US$475 million in investment during H1 2025, an almost eightfold increase from H2 2024.
Mega-deals such as Airwallex’s US$301 million raise contributed to this growth, positioning Singapore as a regional center for digital payments.
Ruddenklau noted,
“Singapore’s fintech firms are capitalising on the demand for agile, interoperable payment platforms that can navigate tariff-induced complexities.”
The top three deals targeted cross-border payment solutions, reflecting demand for infrastructure that enables real-time retail and commercial transactions.
Investors are prioritising platforms that can address compliance, currency conversion, settlement speed, security, and user trust.
Singapore’s digital assets and currencies sector recorded 48 deals in H1 2025, the highest number of deals among all fintech verticals, with US$254.1 million in investment.
The two largest deals were secured by protocol provider Giants Planet and blockchain intelligence platform Coinseeker.co, each raising US$30 million.
This indicates a trend toward institutional demand for regulated financial services and infrastructure that supports scalability and interoperability.
The AI-powered fintech sector also reached a new high, with US$234.5 million invested across 22 deals.
Investments focused on business productivity tools and financial software, reflecting interest in AI solutions that enhance operational efficiency and support digital transformation.
There is potential for more personalised financial services and expanded use of AI in regulatory technology to streamline compliance and risk management.
Globally, H1 2025 represented the softest six-month period for fintech investment since H1 2020.
M&A deal value fell from US$26.7 billion in H2 2024 to US$19.9 billion, while private equity investment dropped from US$4.4 billion to US$1.4 billion.
VC investment remained steady, rising slightly from US$23 billion to US$23.4 billion.
The EMEA region was the only major area to see investment growth, while the Americas attracted the most investment despite a decline.
The ASPAC region recorded the lowest investment levels at US$4.2 billion across 363 deals.
Sector trends showed digital assets, AI, and regtech ahead of 2024 mid-year levels.
Digital assets had US$8.3 billion in investment, compared to US$10.7 billion for all of 2024, while AI attracted US$7.2 billion versus US$8.9 billion in 2024.
Ruddenklau observed,
“Much of the fintech investment globally we’ve seen so far in 2025 has been very strategic rather than broad-brush speculative investments. Firms focused on cost-cutting and divesting non-core assets. The increase in AI-focused fintech investment dovetails with that. Both investors and institutional users are keen on generative and agentic AI, and startups that improve efficiencies will command premium valuations. Fintech-focused AI is only going to get hotter heading into the back half of 2025.”
Featured image credit: Edited by Fintech News Singapore, based on image by Justin Lim via Unsplash
