Global fintech funding rebounded in Q1 2025, but economic volatility sparked by geopolitical tensions could pose a setback for the plucky sector.

The first quarter of 2025 saw $8.07 billion invested worldwide in fintechs across 393 funding rounds, according to the S&P Global Market Intelligence 451 Research Fintech Funding Q1 report, published April 15. While this marks a 46% increase in total investment value compared with the previous year, the number of deals fell 24%, reflecting growing caution amid rising geopolitical tensions and U.S. tariff impacts.

“After showing early signs of recovery in Q1, fintech funding now faces headwinds from rising geopolitical tensions and the ripple effects of sweeping U.S. tariffs, Sampath Sharma Nariyanuri, senior fintech research analyst at S&P Global, said in a statement. “Heightened market volatility is dampening investor risk appetite, putting late-stage funding rounds and IPO pipelines under renewed pressure.”

Key findings from the report include:

• North America led the surge, with funding jumping from $1.9 billion to $4.7 billion;
• EMEA funding rose to $2.1 billion, while APAC saw a sharp decline to $600 million;
• Payments saw strong investor interest, doubling to $2.5 billion; and
• Banking tech investments declined slightly, both in value and deal volume.

Investment outlook

Infrastructure-focused fintechs — like core banking platforms, issuer processors, and non-credit banking-as-a-service providers — are showing resilience due to recurring revenues and long-term contracts, according to the report. Meanwhile, BNPL and consumer credit-focused fintechs are under pressure from slowing volumes and tighter credit conditions.

Amid ongoing volatility, investors are prioritizing fintechs that can enhance operational resilience, streamline compliance or de-risk payments infrastructure — areas that may be best positioned to attract capital as the sector adapts to macro uncertainty.