-> Singapore’s fintech investment recalibrated to US$1.3 billion in 2024, in line with global shifts toward sustainable growth.
-> Crypto and blockchain investment increased 22 percent in H2’24 to US$267 million, driven by AI-integrated solutions.
-> AI-powered fintech surged, with investment jumping from US$24 million in H1’24 to US$160 million in H2’24, reflecting demand for regtech and automation.
-> H2’24 fintech deal value grew 41 percent, reflecting a shift toward high-value, early-stage investments.
SINGAPORE – Media OutReach Newswire – 27 February 2025 – Singapore’s fintech sector recalibrated in 2024, with investment totaling US$1.3 billion, the lowest level since 2020. 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 leader in AI-driven solutions and blockchain advancements, according to KPMG’s Pulse of Fintech H2’24 report.
Singapore’s Resilience in Fintech Innovation
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 US$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.
“If what we’ve seen in the broader investment space is any indication, AI could be a sleeping giant for fintech investment,“ said Anton Ruddenklau, Lead of Global Innovation and Fintech, Financial Services, KPMG International. “However, right now, it’s still very early days. There’s definitely a lot of interest in AI, generative AI, agentic AI and automation, but there’s a lot of caution too. Over the next year, AI-focused regtechs will likely see the most traction among investors as financial services companies look for better ways to respond to the increasingly complex regulatory environment.
Shifting Dynamics in Investment Focus
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 Role of Regulatory Clarity in Blockchain Growth
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 US$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 US$9.1 billion in 2024—the highest total ever outside of the outlier years of 2022 and 2023, focusing on market infrastructure, tokenisation, and stablecoins. During H2’24, four of the five largest deals occurred in the Americas, including Stripe’s US$1.1 billion acquisition of stablecoin infrastructure company Bridge, a US$525 million raise by Praxis, and a US$200 million raise by Current—all based in the US—and a US$210 million raise by Canada-based Blockstream. A US$100 million raise by UK-based Crytocoin accounted for the largest deal in the EMEA region.
Payments sector in Singapore faces maturity challenges
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 totalling US$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 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 US$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 US$12.5 billion acquisition of Worldpay and Advent International’s US$6.3 billion privatisation of Nuvei, alongside other notable activities such as Mynt’s US$788 million VC raise in the Philippines.
A Forward-Looking Market Outlook
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 and to attract entrepreneurial talent to establish and grow ventures in Singapore.
