Singapore’s fintech sector “recalibrated” in 2024, with investment totaling $1.3 billion, the lowest level seen since 2020 according to a report from KPMG.
This strategic pivot reflects a global trend “as fintech investment reached a seven-year low of US$95.6 billion.”
Despite reduced funding levels, Singapore’s focus on innovation and sustainability positions it as a key player in AI-driven solutions and blockchain advancements, according to KPMG’s Pulse of Fintech H2’24 report.
While the cautious investment environment slowed overall funding, Singapore remains “a hub for fintech innovation.”
Crypto and blockchain investment rose “22 percent in H2’24, reaching $267 million, fuelled by AI-powered digital asset solutions and blockchain-based financial infrastructure.”
Strong regulatory frameworks and institutional interest “have solidified Singapore’s role as a strategic leader in these emerging sectors.”
AI-powered fintech also made significant gains, “with investment soaring from US$24 million in H1’24 to nearly US$160 million in H2’24.”
Investor interest was particularly “strong for regtech, business automation and agentic AI solutions.”
H2’24 saw the total value of Singapore’s fintech deals rise “41 percent, hitting US$781 million, even as deal volume dropped 36 percent.”
This underscores a growing emphasis on later-stage deals “with high scalability and near-term profitability.”
Early-stage VC interest remains strong as “quality-driven investments gain traction.”
Globally, fintech investment also trended towards “practical solutions, with funding focused on blockchain infrastructure, climate tech and compliance-driven technologies.”
This alignment with global priorities underscores Singapore’s “adaptability and competitive edge.”
The blockchain and crypto space in Singapore benefitted “significantly from regulatory stability, with H2’24 blockchain investment rising by over 20 percent to reach US$267 million.”
This growth was spurred by AI-powered blockchain applications, blockchain-as-a-service platforms and notable funding rounds such as Partior’s $80 million raise for its blockchain-based interbank settlement network—the largest in the Asia-Pacific region.
These advancements position Singapore for “continued leadership in the digital assets space while aligning with international regulatory trends.”
Global investment in digital assets reached $9.1 billion in 2024—the highest total ever “outside of the outlier years of 2022 and 2023, focusing on market infrastructure, tokenization, and stablecoins.”
During H2’24, four of the five largest deals “occurred in the Americas, including Stripe’s $1.1 billion acquisition of stablecoin infrastructure company Bridge, a $525 million raise by Praxis, and a $200 million raise by Current—all based in the US—and a $210 million raise by Canada-based Blockstream.”
A $100 million raise by UK-based Crytocoin “accounted for the largest deal in the EMEA region.”
Singapore’s payments sector, ranked “third among fintech verticals, showcased resilience despite operating in a mature ecosystem.”
H2’24 witnessed a rise in deal count, with nine transactions “totaling $57.4 million.”
Innovations like FAST, PayNow, and SGQR provide “a robust foundation for the sector, enabling further growth in tailored and scalable payment solutions.”
Opportunity in this fintech segment reportedly lies in “cross-border and regional expansion, positioning Singapore as a hub for Asia’s payment growth.”
On the global stage, the payments sector demonstrated “strong momentum in 2024, with funding nearly doubling year-on-year to reach $31 billion.”
While this funding surge was heavily influenced by consolidation and strategic transactions, it “highlighted the sector’s critical role in the fintech ecosystem.”
Landmark deals included GRCR’s $12.5 billion acquisition of Worldpay and Advent International’s $6.3 billion privatization of Nuvei, alongside other activities such as Mynt’s $788 million VC raise in the Philippines.
Amid a recalibrating investment landscape, Singapore’s focus on sustainable growth, innovation, and emerging technologies “positions the country at the forefront of fintech evolution.”
With declining interest rates and easing global election uncertainties, 2025 offers opportunities for increased “fintech deal activity and new momentum in AI, blockchain, and digital payments.”
The Singapore Budget 2025 further accelerates this momentum, “introducing initiatives to help businesses access and integrate AI at scale while providing guidance to ensure AI is leveraged effectively in their transformation journeys.”