Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
KPMG H1’24: Canadian Fintech Shines Amid Global Consolidation
KPMG H1'24 Global Fintech Funding Report | Aug 8, 2024
Image: Pulse of Fintech H1'24 KPMG
H1 2024 Global Fintech Declines as Canadian Fintech Shines With Two Massive Deals: Nuvei and Plusgrade
Global fintech investment declined across all regions due to high interest rates and continued geopolitical uncertainty, falling to $51.9 billion in H1 2024 from $62.3 billion in H2 2023. This decrease is the lowest fintech investment six-month period since H1 2020. Yet, Canada is in the spotlight with two record setting private equity fintech deals based in Montreal, specifically Nuvei Corp. and Plusgrade Inc.
Highlights
- Markets are consolidating, with mature, stable markets accounting for the majority of the largest acquisitions in H1 2024. There were just five $1 billion+ deals recorded globally, all of which were buyouts, indicating that investors preferred buyouts over new initiatives.
- The payments sector remained dominant across fintech, attracting $21.4 billion in H1 2024. However if we back out two standout deals, Worldpay in the US ($12.5 billion) and Nuvei in Canada ($6.3 billion), investment volume was modest.
See: CSA’s 2024 Investor Index. What Fintechs Need to Know
- AI remains hotly in demand, especially in the US where the tech is used to reduce fraud and increase productivity and operational efficiencies.
- Investment in regtech increased reaching $5.3 billion, which is more than all of 2023's investment. Driving the need is an uptick in compliance automation and the continued complexities of regulatory requirements.
- Insurtech didn't fare so well with investment dollars dropping globally to just $1.6 billion, the lowest on record in a decade, with the report attributing the decline to the high cost of capital and challenging fundraising climate. That hasn't deterred two recent deals in Canada worth noting including Inscora's cyber insurance ($2M CAD) and Walnut's embedded tech partnership model closing $4.6M CAD.
- Wealthtech saw limited major deals but increasing interest in AI tech to improve wealth management services such as robo-advisory and data-driven analytics.
- Crypto and Blockchain stabilized after a rough 2023, reaching $3.2 billion in H1 2024 and a steady volume of deals as VCs are in for the long haul.
Canadian Fintech Record Breaking Deals
Despite global fintech funding challenges, Canadian fintech made headlines in H1 2024 reaching a record $7.8 billion in fintech investments with these two deals:
- Nuvei's $6.3 billion buyout: Advent International purchased the payments processing business located in Montreal, Nuvei. This transaction highlights Canada's growing role in the global payments industry, which is still drawing large amounts of capital.
- $1 billion buyout of Plusgrade: General Atlantic acquired Plusgrade, another Montreal-based company that specializes in revenue solutions for the travel sector, highlighting Canadian fintech firms ability to draw significant foreign investment capital.
Comparing East vs. West
Western Markets (North America and Europe)
- Dominated by huge investments in regtech, AI, and payments as well as large-scale acquisitions.
- The majority of global fintech investment is attracted to more developed regions with well-established infrastructure.
- Focused on innovation powered by AI, especially in terms of improving compliance and operational efficiency.
See: Global Fintech Funding Sees a Boost in Q2 2024
Eastern Markets (Asia-Pacific and EMEA)
- Smaller deal sizes but an increasing emphasis on digital transformation, especially in wealth and payments.
- Considerable interest in asset tokenization and digital currencies, with the EU and Hong Kong at the forefront of innovation.
- Compared to the West, insurtech and regtech are being adopted more slowly, although interest in AI applications is rising.
By Sector
1. Payments
- With significant transactions such as the buyouts of Worldpay and Nuvei, North America and Europe remained dominant. The top 16 largest payments deals came from the Americas and Europe, indicating a strong emphasis on developed markets.
- In comparison, far smaller payments deals were made in Asia-Pacific (ASPAC), with the largest being a $50 million venture capital raise by Singapore-based Nium. The area is still concentrated on digitizing and building out the payment infrastructure, especially in Southeast Asia.
2. AI and Regtech
- With sizeable investments in platforms like Corvus and Spiff, the US lead the world in fintech deals powered by AI. The EU's Digital Operational Resilience Act (DORA) and other regulatory requirements contributed to the robust growth of regtech, especially in Europe.
- In contrast, ASPAC's regtech market was smaller, with Constantinople, an Australian company, closing the largest round with a $32.8 million financing. Nonetheless, the area is concentrating more on implementing AI to deal with local regulatory issues.
See: 12 Market Entry Approaches for Fintech Startups
3. Insurtech
- Despite the industry-wide decline, insurtech investments were concentrated in North America, especially the US. Cyber-insurance and embedded insurance solutions were the market's main focus.
- Insurtech activity in ASPAC was quite low, with the biggest deal being a $80 million venture capital raise by India-based Perfios. Compared to the West, the insurtech market in the region is still in its infancy.
4. Wealthtech
- Edward Jones raised $63.8 million in the US wealthtech market with an emphasis on AI enablement. More B2B solutions are becoming available in the industry.
- Growing interest in self-directed wealth management systems that democratize asset management for smaller investors has been observed across ASPAC, especially in Asia.
See: Brazil Approves the First Ever Spot Solana ETF
5. Crypto and Blockchain
- The US continued to concentrate on regulating cryptocurrencies, and a major turning point was the SEC's approval of Bitcoin ETFs. Significant institutional investment entered the cryptocurrency market as a result of this action.
- The leading regions in asset tokenization and digital currencies were ASPAC and EMEA. Progression toward a digital euro was made by the European Central Bank, while the Hong Kong Monetary Authority advanced its e-HKD pilot project. Traditional finance and decentralized finance (DeFi) are becoming more and more integrated in these areas.
Outlook
Global fintech investments fell in the first half of 2024 as a result of cautious investors, high interest rates, and geopolitical concerns. Despite these obstacles, record-breaking mergers, particularly in the payments space, made Canada's fintech sector stand out with two record breaking deals. Future investments will be driven by emerging technologies such as digital currency, blockchain, and artificial intelligence. It's expected that regulatory compliance, sustainable growth, and combining traditional and decentralized finance will take centre stage.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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