Fintech investment in Singapore fell sharply in the first half of 2026 as investors became more selective and capital was concentrated in a smaller number of larger transactions, according to KPMG’s latest Pulse of Fintech report.
Singapore fintech companies attracted more than $499 million across 53 deals during the six months, down from about $1.45 billion across 97 transactions in the first half of 2025.
The latest figure was also the lowest first-half investment total since at least 2019, based on KPMG data. Investment peaked at $3.54 billion across 234 deals in the first half of 2022.
Activity was particularly weak at the start of this year, with about $88 million invested across 26 deals in the first quarter. Investment recovered to approximately $411 million across 27 transactions in the second quarter.
However, the rebound was largely driven by a $320 million funding round for a cross-border payments platform in June. The transaction accounted for close to two-thirds of Singapore’s total fintech investment during the first half.
“The headline number tells only part of the story,” said Anton Ruddenklau, partner and head of financial services at KPMG in Singapore, adding that investors were concentrating capital in a smaller number of established platforms.
Payments, digital assets, and cryptocurrency, and artificial intelligence and machine learning accounted for much of the activity during the period.
Cryptocurrency and blockchain companies recorded 27 deals with disclosed investment of $95.5 million. Fifteen of those transactions were at the seed or early stage, according to KPMG.
AI and machine learning featured in 18 of Singapore’s 53 fintech deals, representing $365.9 million in disclosed value. The transactions were evenly divided between early- and later-stage companies.
Payments companies attracted $332 million across three deals, although the $320 million June transaction accounted for most of the total.
Singapore’s decline contrasted with an increase in fintech investment globally. Worldwide investment across venture capital, private equity and mergers and acquisitions rose to $103.1 billion in the first half from $72.2 billion in the second half of 2025.
Global deal volume nevertheless declined to about 2,100 transactions from 2,500, indicating that the increase in investment value was also concentrated in larger deals.
Fintech investment across Asia-Pacific remained subdued, falling to $4.6 billion across 350 deals from $7.1 billion across 426 transactions in the second half of 2025.
Payments attracted $44.2 billion globally during the first half, while AI-focused fintech companies drew $21.4 billion across venture capital, private equity and M&A transactions, according to KPMG.