Payments and cryptocurrency bright spots in 2024 as South-east Asia’s fintech funding falls 23%: Tracxn

PAYMENTS and cryptocurrency were bright spots for 2024 fintech funding in South-east Asia, reporting growth as overall funding fell according to a report by data platform Tracxn.

Fintech funding in the region fell 23 per cent to US$1.6 billion in 2024 from US$2.1 billion in 2023. This was a continued fall from US$6.3 billion in 2022.

Almost all sectors saw a fall in funding, except a few such as payments, cryptocurrency and banking tech. Payments raised US$366 million in 2024, a 53 per cent increase from 2023. Cryptocurrency raised US$325 million, a 20 per cent increase from 2023. Banking tech raised US$265 million in 2024, a 63 per cent increase from 2023.

Despite challenges such as rising interest rates, the sector’s innovative spirit continued to shine, with segments such as payments and cryptocurrencies achieving significant growth,” said Neha Singh, co-founder and CEO of Tracxn.

All stages of investment in fintech saw declines, with the late stage investments taking the biggest hit, falling 31 per cent to US$694 million in 2024 from US$1 billion in 2023. This was followed by early stage investments, falling 16 per cent to US$750 million in 2024 from US$893 million in 2023. The decline at the seed was the lowest at 6.4 per cent to US$190 million in 2024 from US$203 million in 2023.

Acquisitions in South-east Asia rose marginally, from 26 in 2023 to 27 in 2024, but no fintech company has gone public last year compared to one in 2023. Singapore led funding for 2024, with fintech companies in the city state raising US$955 million, followed by Jakarta with US$242 million.