Singapore’s fintech sector has experienced a powerful resurgence in the first half of 2025, attracting close to US$1.04 billion in investments across 90 deals, according to KPMG’s Pulse of Fintech H1’2025 report.
This significant influx marks the highest investment quantum seen in the city-state since the first half of 2023, when investments reached US$1.59 billion across 125 deals. Crucially, Singapore’s deal values increased by approximately 87 per cent year-on-year compared to H1 2024 and rose by 28 per cent from the second half of 2024 (H2 2024).
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The strong performance positions Singapore as an outlier, given that global fintech investments registered a dip, falling to US$44.7 billion across 2,216 deals in H1 2025, down from US$54.2 billion recorded in H2 2024. Furthermore, the Asia-Pacific region saw the softest level of fintech investment globally, securing just US$4.2 billion across 363 deals.
Strategic hub status bolstered by regulation
The robust investment activity underscores Singapore’s perceived stability amid macroeconomic headwinds, including global trade fragmentation and tariff escalation.
Anton Ruddenklau, Partner, Head of Financial Services, KPMG in Singapore, emphasised the country’s strategic value: “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.”
Ruddenklau added that the market demands agile and resilient infrastructure in a climate of 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.”
Payments and crypto lead the investment charge
Investments were overwhelmingly concentrated in three key verticals, which accounted for the lion’s share of the total deal size: payments, cryptocurrency (digital assets), and AI and machine learning (AI & ML).
In terms of deal values, payments ranked number one in Singapore, attracting US$474.66 million, followed by crypto (US$254.10 million) and AI & ML (US$234.50 million).
While deals in the payments vertical were spread equally across early and late stages, both the cryptocurrency and AI & machine learning verticals predominantly saw early-stage deals.
| Fintech vertical | Singapore deal size | Singapore ranking |
| Payments | US$474.66 million | #1 |
| Crypto | US$254.10 million | #2 |
| AI & ML deals | US$234.50 million | #3 |
Payments sector sees 8x surge driven by cross-border focus
The payments sector in the island nation saw explosive growth, climbing to US$475 million in the first half of 2025. This represents an almost 8x increase from the investment levels recorded in H2 2024.
This acceleration was anchored by mega-deals, including Airwallex’s US$301 million raise, solidifying Singapore’s role as a regional epicentre for digital payments innovation. Analysis of the deal records shows that the top three deals targeted companies focused on cross-border payment solutions.
Ruddenklau noted that Singapore’s fintech firms are “capitalising on the demand for agile, interoperable payment platforms that can navigate tariff-induced complexities.”
This trend highlights a growing investor appetite for infrastructure that facilitates real-time, cross-border retail and commercial transactions. Investors are prioritising scalable, tech-enabled platforms capable of managing the complexities inherent in international payments, such as compliance, currency conversion, and settlement speed.
Digital assets lead deal volume; AI surpasses past records
Despite a slight dip in deal volume (48 deals in H1 2025, down from 53 in H2 2024), Singapore’s digital assets and currencies sector led all fintech verticals in the number of deals recorded. The sector’s US$254.1 million in investments underscored its resilience and investor appeal.
Notable deals in this vertical include the US$30 million raises secured by protocol provider Giants Planet and blockchain intelligence and tooling platform Coinseeker.co. This suggests an emerging trend where institutional stakeholders drive demand for regulated financial services and infrastructure that offer scalability and real-world utility. The focus is shifting towards enterprise-grade solutions that integrate smoothly with traditional financial systems.
Meanwhile, the AI-powered fintech sector reached a new high, attracting US$234.5 million across 22 deals, surpassing previous investment records seen in both 2023 and 2024.
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Many of these investments were channelled into business productivity tools and financial software, reflecting strong demand for AI solutions that enhance operational efficiency and support broader digital transformation. Globally, AI is also trending well ahead of 2024 investment levels, securing US$7.2 billion at mid-year.
KPMG anticipates that this momentum will continue, with expectations of more hyper-personalised financial services driven by AI, tailoring products to user behaviour. Regulatory technology (RegTech) powered by AI is also set for expansion, streamlining compliance and risk management within increasingly complex financial environments.
Globally, investors are backing startups driving efficiency through generative AI (GenAI) and agentic AI, positioning them to “command premium valuations and significant investment,” according to KPMG.
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