The Irish FinTech market experienced a remarkable surge in 2024, with funding reaching $237.95 million across 25 deals, marking a 291% increase from the previous year's $60.83 million raised in 11 deals. This growth is highlighted in KPMG's bi-annual report, Pulse of FinTech H2’24, which tracks global investment trends in the sector.

A significant contributor to this growth was the $109 million buyout of Dublin-based software company SoftCo by Keensight Capital, the largest FinTech deal in Ireland for the year. Other notable transactions included mobile payment platform CleverCards and Dublin-based CreditLogic, which raised over $8.6 million and $3.7 million, respectively.

In contrast, global FinTech investment saw a decline, dropping from $119.8 billion across 5,382 deals in 2023 to a seven-year low of $95.6 billion across 4,639 deals in 2024. This downturn was attributed to various factors, including macroeconomic challenges, geopolitical tensions, a year of elections in key regions, and concerns over valuations and exit opportunities.

The EMEA region also faced a significant decline, with investment falling from $27.6 billion in 2023 to $20.3 billion in 2024. The second half of 2024 saw a stark drop in investment, decreasing from $13 billion across 820 deals in H1 to just $7.3 billion across 645 deals in H2.

Despite the global downturn, the Irish FinTech sector demonstrated resilience. Ian Nelson, Head of Financial Services & Regulatory at KPMG in Ireland, noted that the sector's impressive growth underscores its potential and innovative spirit. He emphasized that early-stage deals are thriving, particularly those focused on AI and innovative business models, showcasing the adaptability of Ireland's FinTech ecosystem amid global challenges.

In H2 2024, Ireland's FinTech sector recorded $97.15 million in mergers and acquisitions, venture capital, and private equity transactions across five deals, a significant increase from just $1.61 million in the same period the previous year.

Globally, FinTech investment trends in 2024 revealed several key highlights. The Americas led with $63.8 billion across 2,267 deals, while the EMEA region attracted $20.3 billion and ASPAC garnered $11.2 billion. M&A deal value also fell from $60.2 billion to $49.6 billion, although there was a rise in M&A activity from Q3 to Q4 2024.

Private equity investment saw a sharp decline from $10.5 billion in 2023 to $2.6 billion in 2024, while venture capital investment experienced a modest drop from $49.2 billion to $43.4 billion. Payments emerged as the strongest area of FinTech investment globally, with $31 billion in 2024, up from $17.2 billion in 2023.

Looking ahead to H1 2025, trends to watch in the EMEA region include continued investment in regtech due to evolving regulations, growing interest in AI agents for compliance, and potential consolidation driven by regulatory burdens. Additionally, the development of the digital euro and its ecosystem is expected to influence investment strategies and use case development in the sector.