Fintech Market Update | Q2 2025

Key highlights from the report:

• Alantra’s Fintech Index reached a 12-month high, up 31% by June 2025, outperforming the broader S&P 500 and NASDAQ indices. This surge reflects strong investor confidence in fintech amidst a global market recovery.

• Valuations remain strong, particularly in sectors like Financial Data & RegTech, which continue to lead with strong revenue growth and profitability. Valuation multiples in fintech have remained at a premium, emphasizing investor focus on profitable, scalable businesses.

• M&A activity saw a 17% increase in global deal volumes, with strategic demand driving large-scale transactions in Payments, Capital Markets, and WealthTech. Key deals included Global Payments’ $24.3bn acquisition of Worldpay and FIS’s $13.5bn acquisition of TSYS.

• IPO activity rebounded with significant fintech listings, including Circle, Chime and eToro, Circle, signaling renewed investor interest and confidence in the sector’s growth potential. More fintech companies like Klarna and Wealthfront are expected to follow.

• Venture capital and private equity funding remained resilient, up 10% YoY, with large rounds in sectors like Payments, Office of the CFO, and Lending Technology driving both deal volume and value.

• Key fintech trends in 2025 include advancements in AI-driven compliance and fraud detection, the continued rise of embedded and open finance, and growth in decentralized finance (DeFi) and stablecoins.

Download the full report to learn more about the latest trends, market insights, and our perspectives on the future of fintech.

At Alantra, we continue to be active across all fintech sub-sectors, advising on multiple transactions over the last 24 months. Our differentiated model brings together a scaled global technology team with a market-leading FIG practice to deliver a unique, integrated service offering across M&A, capital raising, strategic, and regulatory advisory. We support clients across Payments, Capital Markets Tech, WealthTech, Financial Data & RegTech, Blockchain & Crypto, Credit & Lending Tech, Bank Technology, and the Office of the CFO. As fintech continues to mature and innovate, we are especially focused on emerging trends such as AI-powered solutions, embedded finance, and DeFi, while continuing to drive significant deal flow and supporting clients in navigating the evolving regulatory landscape.