Singapore Fintech Sees Surge in Investments Despite Global Trade Fragmentation and Tariff Escalation: KPMG’s Pulse of Fintech H1’25

Introduction

Singapore’s fintech ecosystem has defied global headwinds in the first half of 2025 — recording a sharp rebound in investment activity despite ongoing pressures from global trade fragmentation, tariff escalation, and economic uncertainty. According to KPMG’s Pulse of Fintech H1’25 report, the city-state attracted nearly US$1.04 billion in funding across 90 deals, making it the biggest fintech investment haul since the first half of 2023.

This resurgence comes at a time when many global markets are seeing slower fintech investment growth. Yet Singapore’s robust regulatory framework, strategic positioning as a financial hub, and deepening innovation ecosystem have helped it stand out amid macroeconomic turbulence.

Investment Rebound in Singapore: Numbers Tell the Story

Strong Funding Growth

For the period covering January to June 2025:

• Singapore fintech funding reached approximately US$1.04 billion, up about 87 % year-on-year compared to H1 2024.
• This figure also represents a 28 % increase from H2 2024, underlining renewed investor confidence in the market.
• Globally, fintech investment totaled US$44.7 billion across 2,216 deals in H1 2025, down from US$54.2 billion across 2,376 deals in the second half of 2024, illustrating a broader cooling trend in fintech funding.

These data points signal that, while global capital deployment into fintech faced headwinds in 2025, Singapore bucked the regional trend and saw robust inflows, particularly in high-growth verticals such as payments, digital assets, and AI-powered financial solutions.

Breaking Down the Sector Trends

Singapore’s fintech investment surge in H1 2025 was driven by significant traction across several key verticals:

1. Payments & Cross-Border Platforms

Singapore’s payments sector led the deal value rankings, attracting about US$475 million in investment — a nearly eightfold leap from H2 2024.

This remarkable growth was anchored by mega-deals, including:

• Airwallex’s  reported fundraising of around US$301 million — one of the largest fintech deals in Asia in early 2025.

Investors have increasingly targeted cross-border and interoperable payment solutions, motivated by the complexities that arise in an era of trade barriers and fragmented commercial flows. Fintechs that can seamlessly support real-time retail and B2B transactions, currency conversion, compliance, and settlement are commanding greater attention.

2. Digital Assets & Currencies

The digital assets and currencies vertical recorded the highest number of deals (48) among all fintech segments in Singapore during H1 2025, with total investments of over US$254 million.

Singapore has long been a hub for regulated digital asset innovation, supported by clear frameworks and active institutional interest. The largest financings in this category were raised by platforms focused on blockchain tooling, intelligence, and decentralized finance infrastructure — showcasing investor appetite for regulated yet cutting-edge digital finance infrastructure.

3. AI-powered Fintech & Machine Learning

Artificial intelligence and machine learning deals also surged, raising approximately US$234.5 million across 22 transactions, marking a record-high segment contribution for Singapore fintech investment.

This wave of funding reflects the growing importance of data-driven automation, risk analytics, personalization, and operational efficiency tools within financial services. Startups that leverage AI for credit scoring, compliance automation, advisory tools, and customer engagement utilities are emerging as investor favorites.

A Strategic Hub Amid Global Fragmentation

While fintech funding in Singapore rebounded strongly in H1 2025, global investment trends painted a more subdued picture:

• Global fintech M&A value dropped from US$26.7 billion in H2 2024 to US$19.9 billion in H1 2025.
• Private equity fintech capital shrank significantly from US$4.4 billion to around US$1.4 billion in the same period.
• VC investment remained resilient globally, rising marginally from US$23 billion to US$23.4 billion.

Despite these broader headwinds, Singapore’s regulatory clarity and market continuity have continued to attract risk and growth capital, even as geopolitical tensions and tariff uncertainties impact traditional financial and trade flows.

According to Anton Ruddenklau, Partner and Head of Financial Services at KPMG in Singapore, this trend reflects Singapore’s positioning as a strategic hub for fintech innovation, resilience, and trustworthiness backed by strong governance and institutional endorsement. In such a climate, agile and tech-driven financial solutions are increasingly valued.

Why Singapore’s Fintech Appeal Endures

Several structural strengths help explain why Singapore continues to outperform other markets for fintech investment:

Robust Regulatory Environment

Singapore provides clear, credible regulations that support digital asset companies, payments firms, and emerging fintech models — a contrast to fragmented regulatory frameworks elsewhere in Asia. This has boosted investor confidence and encouraged institutions to commit capital to Singapore-anchored ventures.

Trade & Tech Connectivity

As global trade becomes more fragmented — with tariff escalation and shifting supply chains — Singapore’s role as a connectivity hub for Southeast Asia and beyond has never been more relevant. Its fintech ecosystem is tightly integrated with cross-border commerce, making it an ideal environment for solutions that facilitate international payments and liquidity flows amid tariff-induced complexity.

Growing Demand for Resilient Infrastructure

Traditional financial flows face disruption, which in turn is increasing demand for resilient, decentralized, tech-enabled financial infrastructure — from blockchain and digital currency platforms to API-driven banking systems. Investors are placing strategic bets on companies that can bridge traditional and next-generation finance.

Future Outlook: Singapore Fintech in a Shifting Global Landscape

Looking ahead, Singapore’s fintech funding momentum could help shape broader industry trends in the second half of 2025 and beyond:

• Hyper-personalized financial services: AI-driven products that tailor offerings based on user behaviour will gain traction.
• RegTech expansion: AI-based regulatory technologies will see rising investment as compliance complexity increases.
• Resilient infrastructure demands: With global economic realities shifting, investors are likely to double down on fintechs that offer interoperable, enterprise-grade infrastructure.

Singapore’s ability to attract capital — even amid trade tensions, tariff escalations, and shifting global economics — underscores its strategic role as a fintech innovation hotbed oriented toward long-term growth and resilient financial infrastructures.

Conclusion

Singapore’s fintech sector has demonstrated remarkable resilience and appeal in the first half of 2025, drawing over US$1 billion in investment despite a backdrop of global trade fragmentation and tariff escalation. With strong performances across payments, digital assets, and AI-powered fintech verticals, the city-state has reinforced its status as a global fintech hub. The latest KPMG Pulse of Fintech H1’25 data underscore how strategic positioning, regulatory strength, and investor confidence can deliver growth even amid broader industry uncertainty.

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